Page 63 - 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 BUDGET PROCESS

A proposed budget shall be prepared by the Town Manager with the participation of all the
Town’ s department directors.

The proposed budget shall include four basic segments for review and evaluation:
personnel costs
base budget for operations and maintenance costs
service level adjustments for increases of existing service levels or additional services
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.

The Town Manager submits the budget to the Town Council. The Town’ s fiscal year begins each
year on October 1st and ends on September 30th of the following calendar year.

Prior to the beginning of the fiscal year, the Town Manager must submit a proposed budget,
which includes:
A budget message
A consolidation statement of anticipated revenues and proposed expenditures for all
funds
General fund resources in detail
Special fund resources in detail
A summary of proposed expenditures by department and activity
Detailed estimates of expenditures shown separately to support the proposed
expenditure
A description of all bond issues outstanding
A schedule of the principal and interest payments of each bond issue

The proposed revenues and expenditures must be compared to prior year revenues and
expenditures. The budget preparation process begins early in the calendar year with the
establishment of overall town goals, objectives, and analysis of current year operations
compared to expenditures. Budget policies and procedures are reviewed at the same time to
reduce errors and omissions.

BALANCED BUDGET
As per State Law, current operating revenues, including Property Tax Reduction Sales Tax ( 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.

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