Use Your Budget as a Management Tool Paragon Consulting
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Forecasting isn’t just for weather How to use your budget as a management tool
Transcript of Use Your Budget as a Management Tool Paragon Consulting
Forecasting isn’t just for weather
Howtouseyourbudgetasamanagementtool
What is money?
Budgeting
Howtoanticipaterevenue
Howtoforecastfutureexpenses
Reporting
Puttingitalltogether
Example Revenue/ Expenses
AccountName(Revenue)FY18ActualRevenue
FY19ActualRevenue
FY20AnticipatedRevenue
Increases/Decreas
esXXXX XXXX
FY20AnticipatedRevenue
LocalFunding $-PropertyTax $-SaleofAssets $-InterestIncome $-Fundtransfersfromnon-highwayaccounts $-Localimpactfees $-AllOtherLocalFunding $-
TotalLocalFunding $-StateFunding $-
HighwayUserRevenue $-SalesTax/InventoryReplacementTax $-OtherStateFunds(Specify) $-AllOtherStateFunds $-
TotalStateFunding $-FederalFunding $-
NationalForestReserveApportionment $-AllOtherFederalFunds $-
TotalFederalFunding $-$-
Total Revenue -$
AccountName FY18ActualFY19Approved
BudgetFY19Actual
FY20ProposedBudget
Increases/Decreases
BudgetCommittee
Recommendation
AdoptedFY20Budget
SalariesEmployee1Employee2Employee3Employee4Employee5Employee6
TotalSalaries -$ -$ -$ -$ -$ -$ -$
OperatingExpenseMaintenance/Repairs
ShopSuppliesPartsToolsTires
Fuel,OilandLubricantsOutsideServices
OfficeExpenseOfficeSupplies
AdminExpensesDrugTestingBankFees
Safety(Fire)Donations
DuesMisc
ProfessionalServicesAccountantEngineering
LegalSurveying/Testing
RoadMaintenanceChipSealing
CrushingCulverts
Grading-Treated(MgCl)Patching
SignsWeedSpraying
WinterMaintenanceTravel/Education
TravelEducation
UtilitiesCellular Telephone
ElectricityGarbage
Gas/HeatTelephone/Internet
Water & SewerOther
Total Operating Expense
Capital ExpenseBuilding
EquipmentVehicle
Office(Computer/Furniture)TotalCapitalExpense
TotalExpenses -$ -$ -$ -$ -$ -$ -$
TotalRevenueminusExpense -$ -$ -$ -$ -$
County Budget Cycle
• Countyofficialnotifiedinwritingtheymustfileanestimateditemizedrevenueandexpenditurebudget
1stMondayinMay
• Countyofficialfilesitemizedestimateofrevenuesandexpenditureswithcountybudgetofficer
3rdMondayinMay
• CountyCommissionersconvenetoconsiderproposedbudget
1stMondayinAugust
• CountybudgetofficermusthavepublishedthetentativebudgetandinformedpublicofpublichearingonorbeforetheTuesdayfollowingthefirstMondayinSept.
3rdweekinAugust
• BOCCpublicdeliberationonfinalbudget.Hearingsmustbeconcludedby2ndMondayinSept.UponconclusionBOCCshallfinalizebudget,whichmaynotbegreaterthanamountadvertised.
On/BeforeTuesdayfollowing1stMondayinSeptember
• TaxleviesmustbeapprovedbyBOCCandsenttoStateTaxCommnolaterthan3rdMondayinSeptember
3rdMondayofSeptember
FiscalyearendsSeptember30th• ButmayremainopenuntilthefirstMondayinNovemberforpaymentofclaimsincurredpriortocloseoffiscalyear,exceptforappropriationsforincompleteimprovements
September30th
• CutoffforprioryearpaymentsforinvoicesdatedbySeptember30th.
FirstMondayinNovember
Highway Districts
budget cycle
HighwayDistrictCommissionersprepare
budget
Postnoticeofbudgethearing10fulldaysprior
todateofmeeting
Budgetismadeavailableforpublicinspection
Aquorumofthehighwaycommissionersattendthehearingandexplaintheproposedbudgetand
hearanyobjections
Budgetisadoptedatendofhearing.FiscalyearbeginsOctober1st
SubmitL2andbudgetresolutiontoCountyfor
inclusionintaxassessment
Anticipated revenue for next year?
Howmuchwillyouhave?
Tax Commission $ collected
NetHighway
DistributionAccount
Gasoline
SpecialFuelTax
Penalties&Audits
Interest
County $ collected
• Trailer House Registration • Other License & Permits • Class D Operators • I.D. Cards • Reflector Plate Fees • Vehicle Registration • Fines
Net Highway Distribution Account
Transportation Department $ to Net Highway Distribution Account (HDA)
Fines & Penalties Vehicle/Truck Registration 120 HR & Single Trip Permits
Plate Fees, Weight Increase Fee, Reflector Plate Fee,
Drivers License Reinstatement
Other Service Fees
HDA Final Distribution
Net Highway Distribution
Account
To State Highway Account
Local Government
To Local Highway Tech. Asst. Council
To Cities
To Counties & Highway Districts
Equally Divided
Based upon Motor Vehicle Reg. Revenue
Based upon Improved Road
Mileage
Local Law Enforcement
Estimating Revenue • Local Funding
• Most of the local funding will be estimated off the amount collected last year, and the increases that have been seen over the prior years.
• Sale of Assets should be estimated off the estimated value
• State Funding • Highway User Revenue funds have increased every year historically, ITD
estimates the increase each year • FY-2020 – 1% increase • FY 2019 – 4.7% increase • FY 2018 – 3.4% increase • FY 2017 – 5.4% increase
• Sales Tax / Inventory Replacement Tax has increased every year (but is very susceptible to economic downturns)
• FY 2020: 5% estimate • FY 2019: 4.6% estimate • FY 2018: 8.72% • FY 2017: 5.97%
5.40%
3.40%
4.70%
0
5.97%8.72%
4.60%
5.00%
2017 2018 2019 2020
PercentIncreaseinfunds
HUR SalesTax
Line 77 Total amount of Highway User Revenue from HB312 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maintenance performed Amount spent Description of work
Line 78 □ Rehabilitation of road -$
Line 79 □ Rehabilitation and maintenance of bridge -$
Line 80 □ Chip Sealing/Seal Coating -$
Line 81 □ Grading/Blading -$
Line 82 □ Striping -$
Line 83 □ Traffic Control -$
Line 84 □ All other maintenance -$
Line 85 Deferred maintenance costs over the last 5 years (in dollars).
MANDATORY Section must be completed on HB312 revenue
Example: □ Chip Sealing/Seal Coating $35,000 Chip sealed .25 miles of main street
general description including quantity of length.
Total amount spent on maintenance or replacement
Reporting is required on the highway user revenue from HB312. Make sure you list how much you received in additional revenue on line 77. Starting on line 78, check the maintenance that was completed with the additional funds, provide how much was spent on each item, and a
Estimating Revenue (cont’d)
• Federal Funding • PILT: Payment in Lieu of Taxes
• Only counties are eligible in Idaho to receive PILT.
• Actual payment based on numerous factors, including: Population, Eligible federal land acres, and Prior year federal land payments from other programs.
• SRS: Secure Rural Schools • Replacement for timber sale funds • Last authorized payment was in 2019 • Authorization status unknown. See NACO
• Federal funding will be an estimate of grant funds you will be receiving
LHTAC Administered
Grants
LHTACApplication
Federal-aidRural–populationlessthan5000,roadwayimprovements
Federal-aidUrban–population5,000to50,000,roadwayimprovements
Federal-aidUrbanTransportationPlans–population5,000to50,000,updatedornewplan
Federal-aidBridge–LocalandOff-System,bridgerehaborrepairs
LHSIP–FatalandSeriousInjuryimprovements
LRHIP–Construction,Sign,TransportationPlans,Emergency
ITDApplication
FreightProgram–multimodalfreightintegrationandenhancingfreightsafety
TransportationAlternativesProgram(TAP)–Pedestrian,bicycle,saferoutestoschool,education
Road & Street
Revenue Analysis
Revenue Exampleforbudgeting
Were do you find this information?
• https://itd.idaho.gov//funding/
https://iahd.com/resources/for-clerks/
http://lhtac.org/resources/annual-road-and-street-financial-report/
How do you forecast future projects and expenses?
Rules for spending
OPERATIONSMONEY CAPITALMONEY SALARIES
What are your expenses for the next 5 years?
Murtaugh Highway DistrictCapital Improvement Plan11/7/2018Prepared by Stephen F. Freiburger, PE, District Engineer
Budget Year
DescriptionFunding Source Year Quantity Unit Unit Price Estimated FY-20 FY-21 FY-22 FY-23 FY-24 FY-25 PD
Chip Seal (incl-CRS-2R, CSS-1, Chips) Budget Annual 6.0 mi 24,000$ 144,000$ 144,000$ 144,000$ 144,000$ 144,000$ 144,000$ 144,000$ -$ Treated Roads Budget Annual 9.0 mi 3,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ 31,500$ -$ Mag Facility Budget FY-20 1.0 ls 10,000$ 10,000$ 10,000$ -$ -$ -$ -$ -$ -$ Signs Budget -$ -$ -$ -$ -$ -$ -$ -$ Patching & Crack Sealing Budget FY-20 1.0 ls 60,000$ 60,000$ 60,000$ -$ -$ -$ -$ -$ -$ Patching & Crack Sealing Budget FY-21 1.0 ls 59,500$ 59,500$ -$ 59,500$ -$ -$ -$ -$ -$ Patching & Crack Sealing Budget FY-22 1.0 ls 59,000$ 59,000$ -$ -$ 59,000$ -$ -$ -$ -$ Patching & Crack Sealing Budget FY-23 1.0 ls 58,500$ 58,500$ -$ -$ -$ 58,500$ -$ -$ -$ Patching & Crack Sealing Budget FY-24 1.0 ls 58,000$ 58,000$ -$ -$ -$ -$ 58,000$ -$ -$ Patching & Crack Sealing Budget FY-25 1.0 ls 57,500$ 57,500$ -$ -$ -$ -$ -$ 57,500$ -$ Culverts Budget Annual 1.0 ls 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ 5,000$ -$ Weed Spraying Budget Annual 1.0 ls 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ -$ Winter Maintenance Budget Annual 1.0 ls 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ 4,000$ -$ RR Crossing Budget Annual 1.0 ls 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ 1,500$ -$ Other Budget Annual 1.0 ls 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ -$ Gravel Crushing LRHIP FY-20 1.0 ls 100,000$ 100,000$ 100,000$ -$ -$ -$ -$ -$ -$ Golden Valley Road Rehabilitation (joint w-OHD) STP-R 1.0 mi 1,000,000$ 1,000,000$ -$ -$ -$ -$ -$ -$ 1,000,000$ 1500W STG 1, 1000S to 800S, Rehab-Project Dev. STP-R 2.0 mi 75,000$ 150,000$ -$ -$ -$ -$ -$ -$ 150,000$ 1500W STG 1, 1000S to 800S, Rehab-Construction STP-R 2.0 mi 750,000$ 1,500,000$ -$ -$ -$ -$ -$ -$ 1,500,000$
-$ -$ -$ -$ -$ -$ -$ -$
Equipment FY-20 1.0 ea 139,000$ 139,000$ 139,000$ -$ -$ -$ -$ -$ -$ Equipment FY-21 1.0 ea 45,200$ 45,200$ -$ 45,200$ -$ -$ -$ -$ -$ Equipment FY-22 1.0 ea 45,200$ 45,200$ -$ -$ 45,200$ -$ -$ -$ -$ Equipment FY-23 1.0 ea 33,000$ 33,000$ -$ -$ -$ 33,000$ -$ -$ -$ Equipment FY-24 1.0 ea 33,000$ 33,000$ -$ -$ -$ -$ 33,000$ -$ -$ Equipment FY-25 1.0 ea 33,000$ 33,000$ -$ -$ -$ -$ -$ 33,000$ -$
Ballast Section Upgrades Budget 1.0 mi 120,000$ 120,000$ -$ -$ -$ -$ -$ -$ 120,000$ Freight Route Upgrades TBD 22.0 mi 500,000$ 11,000,000$ -$ -$ -$ -$ -$ -$ 11,000,000$
-$ -$ -$ -$ -$ -$ -$ -$ Total Wages & Overhead Budget Annual 1.0 317,000$ 317,000$ 317,000$ 317,000$ 317,000$ 317,000$ 317,000$ 317,000$ -$ Building and Maintenance Repair Budget Annual 1.0 ea 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ -$ Total Office Expense Annual 1.0 ea 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ -$ Utilities Annual 1.0 ea 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ -$ Travel & Education Annual 1.0 ea 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ -$ Repairs Annual 1.0 ea 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ -$
Tires & Fuel Annual 1.0 ea 44,000$ 44,000$ 44,000$ 44,000$ 44,000$ 44,000$ 44,000$ 44,000$ -$ Professional Fees Annual 1.0 ea 41,000$ 41,000$ 41,000$ 41,000$ 41,000$ 41,000$ 41,000$ 41,000$ -$ Misc Annual 1.0 ea 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ 1,000$ -$
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
TOTAL 15,260,900$ 1,009,000$ 804,700$ 804,200$ 791,500$ 791,000$ 790,500$ 13,770,000$ Annual Revenue 801,000$ 801,000$ 801,000$ 801,000$ 801,000$ 801,000$ Remaining (208,000)$ (3,700)$ (3,200)$ 9,500$ 10,000$ 10,500$
Grant Funding 100,000$ CIP Carry-Over 788,000$ 784,300$ 781,100$ 790,600$ 800,600$ 811,100$
2019 Carry-Over 896,000$
CIP Years (FY)
Example Budget
BudgetPreparationForm
AccountName FY18ActualFY19Approved
BudgetFY19Actual
FY20ProposedBudget
Increases/DecreasesBudget
CommitteeRecommendation
AdoptedFY20Budget
SalariesEmployee1Employee2Employee3Employee4Employee5Employee6
TotalSalaries -$ -$ -$ -$ -$ -$ -$
OperatingExpenseMaintenance/Repairs
ShopSuppliesPartsToolsTires
Fuel,OilandLubricantsOutsideServices
OfficeExpenseOfficeSupplies
AdminExpensesDrugTestingBankFees
Safety(Fire)Donations
DuesMisc
ProfessionalServicesAccountantEngineering
LegalSurveying/Testing
RoadMaintenanceChipSealing
CrushingCulverts
Grading-Treated(MgCl)Patching
SignsWeedSpraying
WinterMaintenanceTravel/Education
TravelEducation
UtilitiesCellular Telephone
ElectricityGarbage
Gas/HeatTelephone/Internet
Water & SewerOther
Total Operating Expense
Capital ExpenseBuilding
EquipmentVehicle
Office(Computer/Furniture)TotalCapitalExpense
TotalExpenses -$ -$ -$ -$ -$ -$ -$
How to do projections
How do your Commissioners know the money was spent on what it was supposed to be spent on?
QuickBooksProfit/Loss
How do your Commissioners know the money was spent on what it was supposed to be spent on?
MatchesQuickBooksProfit&Loss
ICE – In Case of an Emergency What to do
2 Types of Emergencies
Meetmandatoryexpendituresrequiredbylaw• Catastrophicmedicalindigencypayments• Extraordinarypublicdefender/courtappointedattorneyexpenses
• Tortpayments,etc.
TrueEmergency• Flood• Fire• Explosion• PublicHealthConcern
I.C.31-1608
How to open a budget if you are a County
Request
Elected official or department head justifies increase
Resolution
If agree unanimously, Commissioners vote for and adopt resolution to transfer
Court Order
If board does not agree, but the majority agree, the majority can petition the court for an order directing the transfer.
I.C. 31-1508
How to open a budget if you are a Highway District
Post notice of budget hearing
10 full days prior Budget hearing
with quorum
Budget adjustment
made
Sample budget policy
Summary
v Budgetingo Howtoputtogetherabudgeto Howtotrackabudgeto Reporting–R&Sreportandprojections
v Howtoestimateanticipatedrevenueo Wheretofindito What’savailable
v Exampleshowtolayouto Revenueo Expenses
v Rulesforspendingv Budgetcyclesv HowtoinformCommissioners
o Howtoanticipateexpenseso Projectionso Incaseofemergencies
v Howtoopenabudgetv Budgetpolicies
Questions?
• StephenF.Freiburger,PE• PH:(208)921-8491• [email protected]• www.paragon-fbk.com
• MandiEverett,BBA• PH:(208)681-0155• [email protected]
• 3330W.GraceStreet,Boise,ID83703• PH:(208)344-0565• TF:(800)259-6841• [email protected]|[email protected]
