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Iowa’s City Budgeting System FN 401 MPI

Iowa’s City Budgeting System FN 401 MPI. Patrick Callahan Callahan Municipal Consultants, LLC July 21, 2014 8:00AM. Timing is everything. When is it all over? When does it start? Does your City have a policy and procedure on budget preparation and monitoring? Calendar of events

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Iowa’s City Budgeting System FN 401 MPI

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  1. Iowa’s City Budgeting SystemFN 401 MPI Patrick Callahan Callahan Municipal Consultants, LLC July 21, 2014 8:00AM

  2. Timing is everything • When is it all over? • When does it start? • Does your City have a policy and procedure on budget preparation and monitoring? • Calendar of events • Example • Let’s do it backwards first • Schedule of Council Meetings • Availability of other people such as departments, boards, committees

  3. The Time Table • Count back from March 15 • Copies available – 20 days prior to hearing • Public hearing • Start early –less stress • Consult department heads

  4. Iowa League of Cities • Annual Publications • Budget Training Sessions • Mentors • Department of Management • Ted Nellesen (ted.nellesen@iowa.gov) • Web Site Department of Management • DOM Information - website

  5. County Auditor Information • Taxable valuations – calculate levies • Assessed valuations – G.O. Debt limit • TIF valuations and projections • (go to www.dom.state.ia.us)

  6. Line 3a Line 2B Line 3b Line 2a Line 4a

  7. What is your process? • City Administrator/Manager? • Budget Committee • Citizens • Council • Other taxing agencies • County • Community School • Community College • Extension Offices • Area schools • State • Council – FINAL DECISION

  8. Who will put it all together • That be you! • Isn’t that in the small print? • Need a Quarterback • City Council’s Goal Setting Session

  9. Capital Planning (more later) • Does it tie to the Council’s goals • How far out? 5 years-10 years? • Funding sources

  10. City Council Role • Early Contacts – Set Parameters • Goal Setting Session • Committee of the Whole • Ranking Process • Final Approval

  11. Citizen Input – Not Easy • Ask before budget is proposed • Invite public to meeting • Presentations to groups • Use the media

  12. Where does the other money come from? • State Legislature • Authority for Property Taxes • Revenue Sharing - RUT • Grants • Elections – Sales Tax & Hotel/Motel • Special Assessments

  13. Where does the money come from? (Cont) • Federal government • Revenue Sharing • Grants • Local governments • County • 911 Commissions • Fire districts • Others

  14. Where does the money come from? (Cont) • Our Citizens • Licenses • Permits • User Fees • Swim Pool • Golf course • Recreation Fees • Franchise Fees • Fines

  15. User Fees - Utilities • Water • Sewer • Storm Sewer • Electric & Gas • Garbage • Cable TV/Internet

  16. Other Sources • Gaming revenues • Refunds • Interest on investments • Rent or sale of property

  17. Go to the source • Budget Excel document • GREAT improvement over the years • GREAT resource • Let’s see---

  18. Line Item Budget-Workpapers • Program – department or service • List of expenditures • Previous fiscal years • Current budget year • Year-to-date numbers • Proposed budget • Adopted budget

  19. Where Does the Money go? • The Nine Programs • State Budget Forms – Iowa DOM • (Partial List – Most common services)

  20. Public Safety Services • Police/jail • Fire • Animal control • Emergency management • Flood control

  21. Public Works Services • Streets and bridges • Parking • Street lights • Traffic control • Snow removal • Street cleaning

  22. Health & Social Services • Health regulation inspection • Water, air and mosquito control

  23. Cultural & Recreation • Library • Museum, band and theatre • Parks • Recreation • Cemetery • Community center

  24. Community & Economic Development • Community beautification • Economic development • Planning & Zoning

  25. General Government • Mayor, Council, and City manager • Clerk, Treasurer and Finance • Election • Legal services • City hall • Tort liability

  26. Debt Service • Principal payments • Interest payments • Bond registrar fees

  27. Capital Projects • Construction/building projects • TIF capital projects (or as Special Revenue fund type) • Capital Equipment (now allowed in this area as per GASB 54)

  28. Business Activities/Enterprises • Water • Sewer/wastewater • Landfill/garbage • Cable TV/Internet • Storm sewer

  29. The Types of Funds • General • Special revenue- LOST, RUT, TIF, employee benefit levies • Debt service • Capital projects • Permanent • Enterprise • Non-budgeted funds (internal service)

  30. Budget Form Tips • Do in correct order • Print & copy – 11”x17” sheet • Complete & balance on paper • Click on “save” often

  31. Budget Form 631 E P1

  32. Budget Form 631 E P2

  33. Budget Form 631 A P1

  34. Budget Form 631 A P2

  35. Municipal Expenditures • Personal services – salary & benefits & related expenses • Services & commodities • Capital outlay • Debt payment & interest • Transfers

  36. The Budget Numbering System (City Clerk’s Handbook) • Revenues –fund, function, type & source • Expenditures – fund, function & object

  37. Sources of Information • Estimating Expenditures • City department heads • City staff & finance officer • Previous fiscal year data • City audit reports • Iowa League of Cities –budget report • Utility Providers

  38. More Sources of Information • Estimating Expenditures (con’t) • Insurance agents • Vendors and suppliers • Consumer price index

  39. More Sources of Information • Estimating Expenditures (con’t) • Existing contracts (union contracts, maintenance agreements, leases, township and other 28E agreements)

  40. Sources of Information • Estimating Revenues • County auditor –taxes & TIF • Iowa League of Cities – budget report • City department heads • City finance officer/treasurer • Previous fiscal year

  41. Budget Form 631 D

  42. Budget Form 631 B

  43. Property Tax Systems • County Assessor – Valuations • State Rollback • Taxable Valuations

  44. Property Tax Systems • County Auditor – Role • Tax Levies – City, School, and County • Value x Levy = Tax Dollars • Levy – Per $1,000 of Value

  45. Property Tax Levies • Regular – general fund levy: $8.10 limit • Non-voted permissible levies • Liability, property & self insurance • Local Emergency Management

  46. Property Tax Levies • Voted permissible levies • Public library support • Bands, vocal • CIP Levy

  47. Property Tax Levies (con’t) • Ag Levy – $3.00375 Limit • Special revenue levies • Emergency – (if at $8.10) • Police & fire retirement (411) • FICA & IPERS • Employee benefits (as defined by Administrative Rules)

  48. Property Tax Levies (con’t) • SSMID • Debt service levy • Capital project levy (voter approved)

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