Page 112 - Pantego FY22 Operating Budget

in program emphasis, expenditures of funds, allocation of personnel or
equipment which will result in a change in the level of service currently being
delivered. Departments will have to describe the program, itemize all new costs,
proposed personnel as well as the reason supporting the request. Each
enhancement is prioritized according to need as perceived by the departmental
unit.

During the budget process, each department head will review and discuss their
budgetary needs with the Town Manager. Once all departments have finalized
their base and enhancement proposals, the Town Manager prepares a
comprehensive report on all enhancements by priority and submits this
information as part of the proposed budget to the Town Council.

3. Awards. If feasible and approved by the Town Council, the annual operating
budget may be submitted to the GFOA annually for evaluation and consideration
for the Award for Distinguished Budget Presentation.

4. Basis of Budgeting. The basis of budgeting will be the same as the basis of
accounting; that is, budgets for the General Fund, Special Revenue Funds, Debt
Service Funds and Capital Projects Funds are prepared on the modified accrual
basis of accounting – this means that obligations of the Town (for example
outstanding purchase orders) are budgeted as expenses, but revenues are
recognized only when they are received. Budgets for the Proprietary (Water and
Sewer) Funds, on the other hand, are prepared on a full accrual basis –
expenditures are recognized when a commitment is made, and revenues are
also recognized when they are obligated to the Town.

5. Financial Forecast. A five-year financial forecast shall be prepared annually
projecting revenues and expenditures for all operating and capital project funds.
This forecast shall be used as a planning tool in developing the following year’s
operating budget.

6. Proposed Budget Format. A proposed budget shall be prepared by the Town
Manager with the participation of all the Town’s Directors/Managers. The budget
shall include at least four basic segments for review and evaluation. These
segments are: (1) personnel costs, (2) operations and maintenance costs, (3)
capital and other (non-capital) project costs, and (4) revenues. A format should
be used such that prior year actual, current year budget and revised, and next
year proposed are all clearly shown.

7. Organization of the budget document. The budget document is divided into
seven major sections.
• The first section, Budget Overview, begins with the Town Manager’s Budget
Message to the Town Council with Budget Objectives and Major Issues
included. The Budget Message is followed by an Executive Summary, which
summarizes information about various funds that comprise the budget.
Following the Executive Summary is a schedule of funds and organizational
unit and departments. Next is a summary of the Accounting Basis and
Municipal Fund Structure followed by a Description of Revenue Sources and
Assumptions. Following this section is an overview of the budget process, the
budget calendar and the Town’s organizational chart.

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