Page 360 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 11 Municipal Policies
Municipal Fiscal & Budgetary Policies

III. OPERATING BUDGET

A. Preparation: Budgeting is an essential element of the financial planning, control and
evaluation process of municipal government. The “ operating budget” is the Town’ s
annual financial operating plan. The budget includes all of the operating departments
of the Town, the debt service fund, all capital projects funds, and the internal service
funds of the Town. The proposed budget will be prepared with the cooperation of all
Town departments, and is submitted to the Town Manager who makes any necessary
changes and transmits the document to the Town Council. A budget preparation
calendar and timetable will be established and followed in accordance with State law.

B. Revenue Estimates for Budgeting: In order to maintain a stable level of services, the Town
shall use a conservative, objective, and analytical approach when preparing revenue
estimates. The process shall include analysis of probable economic changes and their
impacts on revenues, historical collection rates, and trends in revenues. This approach
should reduce the likelihood of actual revenues falling short of budget estimates during
the year and should avoid mid-year service reductions.

C. Balanced Budget: As per State Law, current operating revenues, including Property Tax
Reduction Sales Tax transfers ( which can be used for operations), will be sufficient to
support current operating expenditures. Annually recurring revenue will not be less than
annually recurring operating budget expenditures ( operating budget minus capital
outlay). Debt or bond financing will not be used to finance current expenditures.

D. Proposed Budget Process: a proposed budget shall be prepared by the Town Manager
with the participation of all of the Town’ s department directors.
The proposed budget shall include four basic segments for review and evaluation: ( 1)
personnel costs, ( 2) base budget for operations and maintenance costs, ( 3) service
level adjustments for increases of existing service levels or additional services, and (4)
revenues.
The proposed budget review process shall include Council participation in the review
of each of the four segments of the proposed budget and a public hearing to allow
for citizen participation in the budget preparation.
The proposed budget process shall allow sufficient time to provide review, as well as
address policy and fiscal issues, by the Town Council.
A copy of the proposed budget shall be filed with the Town Secretary when it is
submitted to the Town Council as well as placed on the Town’ s website.

E. Budget Adoption: Upon the determination and presentation of the final iteration of the
proposed budget as established by the Council, a public hearing date and time will be
set and publicized. The Council will subsequently consider a resolution which, if adopted,
such budget becomes the Town’ s Approved Annual Budget. The adopted budget will
be effective for the fiscal year beginning October 1. The approved budget will be
placed on the Town’ s web site.

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