1. Overview of City Budget
Workshop on March 28, City of Red Wing, Minnesota

2. Pillars of Red Wing’s Financial Strength
Sound Governance
Financial Planning
Community Input
Debt Management
Investment Protection
Good Business Practices
Innovation & Good Business Practices
Transparency

3. How A City Budget Works From Local Residents
Annual City Budget
From Local Residents
Property Taxes
Total collected through taxes is the LEVY amount User Fees Utilities. Both are recommended by staff; Approved annually by Council
Money comes in from:
Money goes out to:
Operations Keeping government running: staff salaries, benefits, technology
Other Ways State & Federal Aid Other Grants Bonding
Capital
Buildings, equipment, maintenance, pro jects, debt

4. Where the Money Comes From
City Annual Budget
Bonds
User Fees (Water, utilities)
Property Taxes
Other Grants
State & Federal Aid

5. What is Fund Accounting?
A method to divide resources into categories (funds) to identify both the source of funds and how we use the funds.
The system emphasizes accountability rather than profitability

6. Fund Accounting We separate dollars into separate funds and track them.
Governmental Funds Used to account for activities primarily supported by taxes, grants, and similar sources
Proprietary Funds Used to account for activities primarily supported by resident user fees and charges
General Fund
Special Revenue
Capital Project
Debt Service
Permanent Funds
Enterprise
Internal Service

7. Governmental Fund Types
General fund
All financial resources except for those accounted for in another fund. Includes transactions for general governmental services.
Special revenue fund
Proceeds of specific revenue sources that are restricted for specified purposes.
Financial resources for the acquisition or construction of major capital facilities that benefit many citizens, such as parks and municipal buildings.
Capital projects fund
Debt service fund
Accumulation of resources for, and the payment of, general long-term debt principal and interest.
Permanent fund
Restricted resources such that only earnings (not principal) may be used in support of governmental programs that benefit the government or its citizenry.

8. Proprietary Fund Types
Enterprise fund
Operations of government units that charge for services provided to the general public.
Internal service fund
Accounts for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit. Services are offered only to governmental agencies.

9. How To Track What’s Happening
Monthly, Quarterly, Semi-Annual Reports
Balance Sheets
Operating Statements
Cash Flows
Budget Reports
Budget Tracking

10. How We Make Budget Priorities and Decisions
Get input and feedback from the Council and community
Identify departmental budget priorities
Place budget priorities in context of competing demands
Staff recommends how to build budget within priorities
Gather more community feedback
Council decides
Inform residents

11. Budget Planning and Management What Council gets to help them make budget decisions
Strategic Plan and Community Survey
Background on new projects and initiatives
Market growth
Services
Operations
Capital improvements
Levy information
Other – based on national and local factors

12. General Fund Revenues Where the money comes from
Taxes
Intergovernmental Revenue
Licenses and Permits
Charges for Services
Fines and Forfeits
Miscellaneous

13. General Fund Expenses Where the money goes
General Government
Public Safety
Public Works
Culture and Recreation
Economic Development
Capital Outlay
Debt Service
Other

14. Balancing the Budget Revenue Amount Property Tax ???? Building Permits
$100,000
Licenses and Fees
$50,000
Local Government Aid?
$200,000
Total – Without Property Tax
$350,000
Expenses
Amount
General Government
$350,000
Planning and Building
$200,000
Public Works
$800,000
Public Safety
$550,000
Total
$1,900,000

15. Balancing the Budget Revenue Amount Property Tax $1,550,000
Building Permits
$100,000
Licenses and Fees
$50,000
Local Government Aid?
$200,000
Total
$1,900,000
Expenses
Amount
General Government
$350,000
Planning and Building
$200,000
Public Works
$800,000
Public Safety
$550,000
Total
$1,900,000

16. Planning the Capital Improvement Program
Capital Improvement Program (CIP) is a Five- to Ten-Year Plan for Capital Expenditures
How do we create the CIP?
Consider community priorities
Prepare capital requests from departments
Formulate and recommend plan to elected officials
Get Council approval
Other considerations
Assess project feasibility
Review project financing

17. Creating the Long-Range Financial Plan
Long-range financial plan is a multi-year fiscal plan for all tax-supported funds in five- to ten-year projections
Long-Range Plan integrates the following:
Existing Debt
Future Debt
Capital Improvement Programs
Tax Base Growth
Future Operating Expenses

18. Why Build a Long Range Financial Plan?
We need a comprehensive fiscal plan for the future
Allows us to evaluate budget priorities
Maintains assets and provides schedules for replacements
Stabilizes property tax levies (and avoids spikes)
Avoids “Kicking the Can Down the Road”
Gives Council comfort they can afford capital investments over the long term

19. Finance Calendar Jan - March Sept - Dec April - May June - August
State Budget Report
Budget Publication
Audit Preparation
Jan - March
Certification Process
Set Prelim Levy (Sept)
Submit final levy (Dec)
Set Utility rates
Sept -
Dec
April -
May
Audit fieldwork
Annual Financial Statement
Budget development
June -
August
State Auditor reporting

20. Calendar of Budget Process in 2018
Date Description
March Budget Workshop: Overview of City Budget
April Budget Workshop: Focus on Priorities
April – June Ongoing: Share information & get input from residents Departments prepare preliminary budgets
June Budget Workshop: Align Priorities
June – July Ongoing: Share information & get input from residents
August Budget Workshop: Council Reviews Preliminary Budget
August Share information and get input from residents
August Additional Council Workshop (if needed)
Sept Council adopts preliminary levy & budget
November Public Hearing at Planning Commission
December Truth in Taxation Meeting and Council Approve Levy

21. Outline of Engaging with Residents
How We’ll Share Information
--Web page devoted to the budget. Also share on City Beat/Facebook
--Newspaper articles & articles on web
How We’ll Engage Online
--Online survey for feedback on priorities of residents
How We’ll Engage in Person
--Small-group meetings
--Q&A Forum
--Workshops – Each workshop will have public comment period at the beginning
-- Each resident will receive a question card that he/she can fill out and hand in during or after the meeting

22. Calendar of Connecting with the Public
Date Description Early May Create Budget web page on City web site Update throughout the year/Will include quick way to ask question
May-June Host coffees with residents (Mayor, Marshall & Michelle) April 30 Workshop – open to public comment May-June Online survey to public -- ask about priorities
June – July June 4 Workshop – open to public comment Also a Q&A Forum with Council members & Finance August August 2 Workshop – open to public comment Share preliminary budget overview with the public Online and traditional media
September - December Publicize workshops, public hearing, and TNT meeting All have options for public comment

23. Ways to Reach Out to Public
How we will promote the dates of workshops, meetings, coffee gatherings, and public forum
Posters
Channel 6
Web Site
Facebook
City Beat
Republican Eagle
KWNG radio
Chamber Commerce e-newsletter