Nuts and Bolts of Good Budgetary Practices Allen Gill Ernie Tessone

Don’t Get Caught Short!

Broad Principles of Budgeting 1.Establish Goals to Guide Government Decision Making 2.Develop Approaches to Achieve Goals 3.Develop a Budget Consistent with Approaches to Achieve Goals 4.Evaluate Performance and Make Adjustments

Principle #1 1.Establish Goals to Guide Government Decision Making

Principle #1 - Establish Goals Assess Community Needs, Priorities, Challenges and Opportunities 1. Identify Community Concerns, Needs and Priorities. 2. Evaluate Community Condition, External Factors.

Principle #1 - Establish Goals Identify Opportunities and Challenges for Government Services, Capital Assets and Management 1. Assess Services and Programs, Identify Issues, Opportunities and Challenges. 2. Assess Capital Assets, Identify Issues, Opportunities. 3. Assess Governmental Management Systems and Identify Issues and Opportunities.

Principle #1 - Establish Goals Develop and Disseminate Broad Goals 1. Identify Broad Goals. 2. Disseminate Goals and Review with Community.

Principle #2 2. Develop Approaches to Achieve Goals 1.Establish Goals to Guide Government Decision Making 2. Develop Approaches to Achieve Goals

Principle #2 - Develop Approaches Adopt Financial Policies 1. Develop Policy on Stabilization of Funds. 2. Develop Policy on Fees and Charges. 3. Develop Policy on Debt Issuance and Debt Level. 4. Develop Policy on use of One-Time Revenues a. Evaluate the use of Unpredictable Revenues.

Principle #2 - Develop Approaches Adopt Financial Policies (Continued) 5. Develop Policy on Balancing the Operating Budget. 6. Develop Policy on Revenue Diversification. 7. Develop Policy on Contingency Planning.

Principle #2 - Develop Approaches Develop Programmatic, Operating and Capital Policies 1. Prepare Policies and Plans to Guide the Design of Programs and Services. 2. Prepare Policies and Plans for Capital Asset Acquisition, Maintenance, Replacement and Retirement.

Principle #2 - Develop Approaches Develop Management Strategies 1. Develop Strategies to Facilitate Attainment of Program and Financial Goals. 2. Develop Mechanism for Budgetary Compliance. 3. Develop the Type, Presentation and Time Period of the Budget.

Principle #3 1.Establish Goals to Guide Government Decision Making 2.Develop Approaches to Achieve Goals 3. Develop a Budget Consistent with Approaches to Achieve Goals

Principle #3 - Develop a Budget Develop a Process for Preparing and Adopting a Budget 1. Develop a Budget Calendar. 2. Develop Budget Guidelines and Instructions. 3. Develop Mechanism for Coordinating Budget Preparation and Review.

Principle #3 - Develop a Budget Develop a Process for Preparing and Adopting a Budget (Continued) 4. Develop Procedures to Facilitate Budget Review, Discussion, Modification and Adoption. 5. Identify Opportunities for Community Input.

Principle #3 - Develop a Budget Develop and Evaluate Financial Options 1. Conduct Long-Range Financial Planning. 2. Prepare Revenue Projections. a. Analyze Major Revenues. b. Evaluate the Effect of Changes to Revenue Source Rates and Bases. 3. Document Revenue Sources in Revenue Manual.

Principle #3 - Develop a Budget Develop and Evaluate Financial Options (Continued) 4. Prepare Expenditure Projections. 5. Evaluate Revenue and Expenditure Options. 6. Develop a Capital Improvement Plan.

Principle #3 - Develop a Budget Make Choices Necessary to Adopt a Budget 1. Prepare and Present a Recommended Budget. a. Describe Key Policies, Plans and Goals. b. Identify Key Issues. c. Provide a Financial Overview. d. Provide a Guide to Operations. e. Explain the Budgetary Basis of Accounting. f. Prepare a Budget Summary. g. Present the Budget in a Clear, Easy-to-Use Format. 2. Adopt the Budget.

Principle #4 4. Evaluate Performance and Make Adjustments 1.Establish Goals to Guide Government Decision Making 2.Develop Approaches to Achieve Goals 3. Develop a Budget Consistent with Approaches to Achieve Goals 4. Evaluate Performance and Make Adjustments

Principle #4 - Evaluate Performance Monitor, Measure, and Evaluate 1. Program Performance 2. Budgetary Performance 3. Financial Condition 4. External Factors 5. Capital Program Implementation

Principle #4 - Evaluate Performance Make Adjustments as Needed 1. Adjust the Budget 2. Adjust Policies, Plans, Programs and Management Strategies 3. Adjust Broad Goals, if Appropriate

Broad Principles of Budgeting - Summary 1.Establish Goals to Guide Government Decision Making. 2.Develop Approaches to Achieve Goals. 3.Develop a Budget Consistent with Approaches to Achieve Goals. 4.Evaluate Performance and Make Adjustments.