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Iowa’s City Budgeting System

Iowa’s City Budgeting System. Patrick Callahan Snyder & Associates July 25 , 2011. Timing is everything. When is it all over? When does it start? Does your City have a policy and proceedure on budget preparation and monitoring? Calendar of events Example Let’s do it backwards first

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Iowa’s City Budgeting System

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  1. Iowa’s City Budgeting System Patrick Callahan Snyder & Associates July 25, 2011

  2. Timing is everything • When is it all over? • When does it start? • Does your City have a policy and proceedure 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 mailing to help with schedules and calculations • Budget Training Sessions • Mentors • Department of Management • Steve Ford • Web Site Department of Management

  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 • Dah!!! • 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 • Cash on hand • Local Option Sales Tax • Bonds – G.O. and Revenue • Enterprise Revenues • Gifts/Grants • CIP Levy

  10. Where does the other money come from? • State Legislature • Authority for Property Taxes • Revenue Sharing • Trickle down • Grants • Elections – LOST & Hotel/Motel • Special Assessments

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

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

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

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

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

  16. 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

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

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

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

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

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

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

  23. General Government • Mayor, Council, and City managers • Clerk, Treasurer and finance • Election • Legal services • City hall • Tort liability

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

  25. 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)

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

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

  28. Budget Form 631 E P1

  29. Budget Form 631 E P2

  30. Budget Form 631 A P1

  31. Budget Form 631 A P2

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

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

  34. 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 Provider

  35. More Sources of Information • Estimating Expenditures (con’t) • Insurance agents • Vendors and suppliers • Consumer price index • Existing contracts (union contracts, maintenance agreements, leases, township and other 28E agreements)

  36. 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

  37. Budget Form 631 D

  38. Budget Form 631 B

  39. Property Tax Levies • Regular – general fund levy: $8.10 limit • Non-voted permissible levies • Liability, property & self insurance • Local Emergency Management • Voted permissible levies • Public library support • Bands, vocal

  40. 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)

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

  42. Budget Form 635.1

  43. Budget Form 635.1 (bottom)

  44. Fund Balance Reminders • Council Resolution • Check audit reports • Annual financial report

  45. Budget Form FBW

  46. The “Fine Art” of Balancing the Budget • Reduce expenditures • Increase revenues • Spend down cash resources • City staff recommendations • City Council – ranking • City Council – final decision • The appeal process - $8.10 • Watch calendar requirements for appeal

  47. The Public Hearing Process • Budget forms completed • Prepare notice of public hearing & budget estimate • Publication 10/20 day rule • Copies available – 20 days prior to the hearing

  48. Budget Form 631.1

  49. Go to the handouts • Two different handouts • 1) A completed budget • 2) Line item budget workpapers

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