the municipal secretary desktop reference manual - Southwestern ...

held, after the budget is advertised as publicly available, and at least one week prior to
adoption.
Commentary
Adoption of the budget is a governing body=s most critical responsibility. Elected officials and those
preparing the budget should have the opportunity to interact as the budget is being formulated.
Discussion should focus on the issues facing the municipality and how the fiscal plan addresses
them. A budget calendar can help to formalize the procedure.
The budget request document provides an opportunity for those most familiar with a budget area to
explain and justify specific objectives and performance measures/targets. It also affords the
opportunity to explain the impact of policy changes on operations, service levels and/or finances.
The call for a public hearing in advance of, although not required by the municipal codes, adoption is
essential not only for building public trust, but also gaining public input in time to give it serious
consideration before the budget is adopted.
5. The budget format is to display all revenues and expenditures for the immediate past
three years, in addition to projections for the coming year.
Commentary
Trend data are extremely helpful, if not essential, to the decision-makers. Such data can help to raise
questions and alert officials to real or potential problems in order to formulate contingency plans.
The budget is a dynamic process that requires constant changes and adaptions to changing
circumstances.
6. Revenue and expenditure projections are realistic and based on valid support data.
Commentary
Any local government which attempts to balance its budget with unrealistic revenue projections or
nonexistent revenues is headed for financial problems by the end of the fiscal year. It is best to
tackle the budget balancing problem up front--when the budget is adopted. Where can expenditures
be cut? What new revenue sources are available? What adjustments in tax rates will be needed?
Similar to revenue projections, expenditure control throughout the fiscal year represents a critical
factor as to whether the budget will be in or out of balance. Policy-makers are often guilty of cutting
budgets at the time of preparation while not following through during the course of the fiscal year;
resulting in predictable deficits at year end.
FACTOR:
FISCAL PLANNING FOR FUTURE EXPENDITURES AND REVENUES
Standards
1. The municipality annually adopts, by ordinance or resolution, its capital spending plan.
It identifies capital needs for several years, their estimated costs, starting and
completion dates for construction projects, means of financing the plan's components,
and the impact these will have upon the municipality's annual operating budget. The
ordinance is updated and adopted every year.
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