Page 61 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Budget 101 Overview

The following procedures, which are guided by generally accepted budgeting practices, has
been established:
The annual operating budget presents appropriations of expenditures and estimates of
revenues for all local government funds. These revenues include sales and use taxes, ad
valorem property tax, citation revenue, franchise taxes, mixed beverage taxes, license
and permit fees, development fees, sales of printed material, interest income, water and
sewer utility revenue, duct bank leases, and miscellaneous revenues.
The annual operating budget illustrates expenditures, anticipated revenues, and the
estimated impact on reserves.
Budgets for each municipal department are broken down into specific cost
components, including payroll and related categories, supplies, services, insurance,
repair & maintenance, rent & utilities, economic development incentives, debt service
and capital outlay.
Revenue projections are prepared for each revenue source based on an analysis of
historical revenue trends and current fiscal conditions.
The budget process includes a multi-year projection of all required capital improvements.
Goals and objectives have been developed for each department and are incorporated
into the evaluation of employees and performance of the organization.
A budget message summarizing local financial conditions and principal budget issues is
presented to the governing council along with the annual budget.

In May, the Finance Department prepares such items as budget forms and instructions for
estimating revenues and expenditures. Department heads submit proposed baseline
expenditures for current service levels and any additional one-time or on-going request they
may have for their department. A round- table meeting is subsequently held with the Town
Manager, the finance staff and each department head for review.

After all funding levels are established and agreed upon; the proposed budget is presented by
the Town Manager to the Town Council. A public hearing on the budget is conducted in
accordance with state and local law. This meeting is held after the Council has reviewed the
budget during a workshop. The Town Council approves a level of expenditure ( or
appropriation) for each fund to go into effect on October 1st, prior to the expenditure of any
Town funds for that budget year.

EFFECT OF PLANNING PROCESSES ON THE BUDGET

The budget process will be coordinated to identify major policy issues for Town Council by
integrating it into the Council’ s overall strategic planning process for the Town. Each
department shall have a multi-year business plan that integrates with the Town’ s overall strategic
plan.

The Town of Westlake utilizes several planning processes that affect the development of the
operating budget. Effective planning processes assist the Town in assessing the financial
implications of current and proposed policies, programs, and assumptions. An effective plan
illustrates the likely outcomes of particular courses of actions.

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