City Budgeting BasicsMarch 5, 2020
• Budget Year– The City of Pocatello’s budget (fiscal) year begins on October 1 and ends on
September 30 of each year
• Budget Planning– Generally starts 6 months before the fiscal year begins
– Salary projections– Department meetings– Tax solution
City Budget Process
Financial CycleBudget Cycle• Appropriate Budget• Adopt Fees
Execute Fiscal Year• Monitor Budget Execution• Amend Budget
Report on Closed Fiscal Year• In Coordination with Audit
Funds• What is a Fund?
– An accounting entity with a self-balancing set of accounts– Can be thought of as its own checkbook
• Why do we use Funds?– Clarify how resources are being directed at various programs– Maintain tight control over resources– Designed to monitor resource inflows and outflows
Types of Funds• Governmental
– Tax-supported
• Proprietary– Business-type
• Fiduciary– Trustee
Governmental Funds• General Fund
• Special Revenue Funds
• Debt Service Funds
• Capital Projects Funds
Governmental Funds – General Fund• General operating fund
• Includes all government functions that aren't categorized under any other fund
Departments within the General Fund• Mayor/Council
• Finance
• City Hall (Custodial)
• Building
• Planning
• Engineering (including GIS)
• Human Resources
• Non-Departmental
• Economic Development
• Legal
• Police
• Fire
• Animal Services
• Parks
• Parks and Rec Admin
Governmental Funds – General FundAdministrative
9% City Hall1%
Building2% Planning
2%
Engineering4%
Non-Departmental5%
Police44%
Fire23%
Animal Services3%
Parks7%
Governmental Funds – Special Revenue• Created to report money reserved for specific purposes
• Funds include– Street– Recreation– Cemetery– Airport– Library– Transit– Environmental Science– CDBG
Governmental Funds – Special Revenue
Street36%
Recreation15%
Cemetery3%
Airport9%
Library9%
Transit17%
Env Science3% CDBG
8%
Governmental Funds – Debt Service• Keep track of funds used to pay governmental debt
– The City only has one Debt Service Fund– Used for the repayment of the Animal Shelter Bond
Governmental Funds – Capital Projects• Used in accounting for purchasing, building or renovating
equipment, structures and other capital assets
• Does not include capital assets or improvements paid for by proprietary funds
• Funds include– Federal Aid Projects Fund– Street Improvement Fund– Airport Improvement Fund– Capital Improvement Fund
Proprietary Funds• Enterprise Funds
• Internal Service Funds
Proprietary Funds – Enterprise• Provides goods or services to the public for a fee that makes the
entity self-supporting
• Funds include– Sanitation Fund– Water Fund– WPC Fund– Ambulance Fund
Proprietary Funds – Enterprise
Sanitation20%
Water38%
WPC34%
Ambulance8%
Proprietary Funds – Internal Service• Used to track goods or services shifted between departments on a
cost reimbursement basis• Funds include
– Liability Insurance Fund– Fleet Management Fund – Information Technology Fund – Utility Billing Fund– Employee Wellness Fund – Public Works Fund– Fuel Fund– Worker's Insurance Fund– Education Benefits Fund– Retirement Payout Fund
Capital Improvement Plan• Long term capital purchase/planning document
• Used to plan for the purchase and/or construction of large capital infrastructure, facilities, equipment, and other capital assets
Major Revenue Sources• Property Tax
• Sales Tax
• Building Permits
• State Liquor Tax
• Franchise Fees– Electric– Natural Gas– Cable
• Magistrate Court Fees
• Highway User Fees
• County Road & Bridge
• Cemetery Charges
• User Fees
Major Expenditures• Personnel
• Supplies
• Services
• Capital
• Debt Service
• Miscellaneous
Major Expenditures
Personnel53%
Supplies8%
Services17%
Capital17%
Debt Service4%
Miscellaneous1%
Balanced Budget• Appropriations should not exceed resources available to cover these
expenditures
• GFOA definition– Structurally balanced budget, which is described as a budget where recurring
revenues are sufficient to cover recurring expenditures
Available Fund Balance + Estimated Revenues = Funds Available for Appropriation
Reserve Policy• In Fiscal Year 2016 Council adopted a Reserve Policy
– 25% of next fiscal year’s expenditures– Excess reserves may only be used for one-time expenditures
• Policy used to determine if the Fund has excess reserves that can be used– Use of reserves can be accomplished in next budget cycle or with a budget
amendment
• To determine if the budgetary plan needs to rebuild the reserves
Questions?
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