iowa’s city budgeting system patrick callahan snyder & associates july 22, 2013
TRANSCRIPT
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Iowa’s City Budgeting System
Patrick Callahan
Snyder & Associates
July 22, 2013
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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
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The Time Table
Count back from March 15 Copies available – 20 days prior
to hearing Public hearing Start early –less stress Consult department heads
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Iowa League of Cities Annual mailing to help with schedules and
calculations Budget Training Sessions Mentors
Department of Management Ted Nellesen
([email protected]) Web Site Department of
Management DOM Information - website
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County Auditor Information
Taxable valuations – calculate levies
Assessed valuations – G.O. Debt limit
TIF valuations and projections
(go to www.dom.state.ia.us)
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Line 2a Line 4aLine 3a Line 2B Line 3b
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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
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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
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Capital Planning (more later)
Does it tie to the Council’s goals How far out? 5 years-10 years? Funding sources
Cash on handLocal Option Sales TaxBonds – G.O. and RevenueEnterprise RevenuesGifts/GrantsCIP Levy
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Where does the other money come from?
State LegislatureAuthority for Property TaxesRevenue Sharing - RUTGrants Elections – LOST & Hotel/MotelSpecial Assessments
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Where does the money come from? (Cont)
Federal governmentRevenue SharingGrants
Local governmentsCounty911 CommissionsFire districtsOthers
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Where does the money come from? (Cont)
Our CitizensLicensesPermits User Fees
Swim Pool Golf course Recreation Fees
Franchise FeesFines
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User Fees - Utilities
Water Sewer Storm Sewer Electric & Gas Garbage Cable TV/Internet
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Other Sources
Gaming revenues Refunds Interest on investments Rent or sale of property
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Go to the source
Budget Excel documentGREAT improvement over the
yearsGREAT resourceLet’s see---
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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
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Where Does the Money go?
The Nine Programs State Budget Forms – Iowa
DOM (Partial List – Most common
services)
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Public Safety Services
Police/jail Fire Animal control Emergency management Flood control
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Public Works Services
Streets and bridges Parking Street lights Traffic control Snow removal Street cleaning
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Health & Social Services
Health regulation inspection Water, air and mosquito control
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Cultural & Recreation
Library Museum, band and theatre Parks Recreation Cemetery Community center
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Community & Economic Development
Community beautification Economic development Planning & Zoning
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General Government
Mayor, Council, and City managers
Clerk, Treasurer and finance Election Legal services City hall Tort liability
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Debt Service
Principal payments Interest payments Bond registrar fees
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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)
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Business Activities/Enterprises
Water Sewer/wastewater Landfill/garbage Cable TV/Internet Storm sewer
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The Types of Funds
General Special revenue- LOST, RUT,
TIF, employee benefit levies Debt service Capital projects Permanent Enterprise
Non-budgeted funds (internal service)
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Budget Form 631 E P1
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Budget Form 631 E P2
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Budget Form 631 A P1
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Budget Form 631 A P2
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Municipal Expenditures
Personal services – salary & benefits & related expenses
Services & commodities Capital outlay Debt payment & interest Transfers
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The Budget Numbering System (City Clerk’s Handbook)
Revenues –fund, function, type & source
Expenditures – fund, function & object
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Sources of Information
Estimating ExpendituresCity department headsCity staff & finance officerPrevious fiscal year dataCity audit reports Iowa League of Cities –budget
reportUtility Providers
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More Sources of Information
Estimating Expenditures (con’t) Insurance agentsVendors and suppliersConsumer price indexExisting contracts (union
contracts, maintenance agreements, leases, township and other 28E agreements)
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Sources of Information
Estimating RevenuesCounty auditor –taxes & TIF Iowa League of Cities – budget
reportCity department headsCity finance officer/treasurerPrevious fiscal year
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Budget Form 631 D
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Budget Form 631 B
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Property Tax Levies
Regular – general fund levy: $8.10 limit
Non-voted permissible leviesLiability, property & self insuranceLocal Emergency Management
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Property Tax Levies
Voted permissible leviesPublic library supportBands, vocal CIP Levy
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Property Tax Levies (con’t)
Ag Levy – $3.00375 Limit Special revenue levies
Emergency – (if at $8.10)Police & fire retirement (411)FICA & IPERSEmployee benefits (as defined by
Administrative Rules)
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Property Tax Levies (con’t)
SSMID Debt service levy Capital project levy (voter
approved)
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Budget Form 635.1
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Budget Form 635.1 (bottom)
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Fund Balance Reminders
Council Resolution Check audit reports Annual financial report
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Budget Form FBW
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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
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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
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Budget Form 631.1
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Go to the handouts
Two different handouts1) A completed budget2) Line item budget workpapers
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Are we done yet?
No Now we need to make it
understandable.Graphs
Summary of various items Newsletters Public meetings
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What kinds of graphs?
Category GraphsPersonnel SuppliesCapitalDebt
Historical What does this year look like
compared to prior year(s)
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Newsletters
Introductory letter with major items
What projects will be included in the next year(s)
Any major changes in personnel, programs or facilities?
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Budget Form 635 2A
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Finishing up
Certification Resolution E-filing to DOM Submission to GFOA? Take a vacation you deserve it
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Finishing up
Then monitor it all year longMonthly reports to the Council
Actual to budgeted Cycles for expenditures and
revenues The Budget Protest
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Budget is the backbone of City Finance
It is the plan It is the guide It is the control And then there are amendments
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Budget AmendmentsPRIOR TO EXPENDITURE
ChangesWeatherPrioritiesPersonalities
It is still the plan It is still the guide But it is the law! Due May 31
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Resources & Training
Iowa League of Cities- budget report
Iowa League of Cities – budget workshop
Iowa handbook for city clerks & finance officers –Chapters 7, 11 & 14
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Resources & Training (con’t)
Iowa policy leaders handbook- Chapter 6
Iowa Department of Management Web site
City clerk’s – nearby communities and regional clerk’s meetings
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Now let’s do a workout!