CGFO BUDGETING

• INCORP L/T PERSPECTIVE
• EST LINK TO BROAD ORG GOALS
• FOCUS DECISIONS ON RESULTS & OUTCOMES
• ACHIEVE CONSENSUS ON GOALS, OBJECTIVE, OUTCOMES

• EXECUTIVE BUDGET
• PROGRAM BUDGET
• 0 BASED BUDGET
• BUDGET ALLOTMENT
• PRIORITY BASED BUDGETING

BUDGET WHEREIN EXP ARE BASED ON PROGRAM OF WORK AND ON CHARACTER & OBJECT CLASS

• ORG BY MAJOR PROGRAMS
• CROSS DEPT LINES
• ENABLES COMP OF COSTS/BENEFITS OF MAJOR PROGRAMS
• MAY ENCOURAGE MICROMGMT

• CONTINUED EXISTENCE HAS TO BE JUSTIFIED EACH YR
• FORCES CONSCIOUS DECISIONS BETW DISPAARATE GOALS
• ADDRESS APPROP OF EACH GOAL RATHER THAN MOST COST EFFECTIVE PROG TO ACHIEVE GOAL

PORTION IS ALLOCATED TO INTERIM PD BASED ON PAST HISTORY

• AVOIDS RUSH YR END SPENDING
• AIDS IN CASH FLOW
• PROVIDES FOR INV PLANNING NEEDS

RESOURCES S/B ALLOC ACCC TO HOW EFFF A PROG ACHIEVES GOALS/OBJ THAT ARE OF GREATEST VALUE TO COMM

BUDGETING FOR RESULTS/OUTCOMES

• ID MOST IMPT STRATEGIC PRIORITIES
• RANK PROG ACC TO HOW WELL THEY ALIGN W/ PRIORITIES USING COLLABRATIVE EVIDENCE-BASED PROCESS
• FUNDING ALLOC ACC TO RANKING

• FINANCIAL PLAN
• POLITICAL - RESOLVE CONFLICTS
• PLANNING/ANALYTICAL - COST BEN ANALYSIS, NPV, STRATEGIC PLANNING, COST EFF

MATCH RESOURCES & SPEND INCLUDING ACCUMULATED RESOURCES

• ADMINISTRATIVE
• COMMUNICATIVE
• STRATEGIC PLANNING

EFF COORD PREP OF BUDGET & ENSURE EXP ARE IN ACC W/ ADOPTED BUDG

PROVIDE INFO THAT WILL ASSIST W/ CHOICES

• BUDG MANUAL
• DEPT REQUESTS
• PREP PROPOSED
• LEGISL CONSID/APPROP
• IMPLEMENT
• AUDIT/EVAL (COMPLIANCE

INITIATE BUDGET CYCLE - USUSALLY CM OR MAYOR

• DETAIL AMTS REQ
• SUPPORTING DOC
• TRANSMITTAL LETTER PROVIDING JUSTIFICATION - GIVES OVERVIEW OF BUDGET REQUEST

• 35 DAYS INTO trim PROCESS - TENTATIVE MILLAGE RATE DUE
• PROCESS BEGINS 7/1

• HARD TO PROJCT FUTURE
• COULD REDUCE RESPONSIVE TO EMERGENCIES
• INITIAL YR MAY INC WORK/STRESS IN DEPTS

• ALLOW/DISALLOW CARRYOVERS 1 YR TO NEXT
• LEVEL ACCEPTANCE OF BUDG REQ
• RESERVES CAN BE USED FOR UNANTIC EXP

• CREATES POLICIES
• BALANCES BUDG
• REV DIVERSIF
• DEBT CAPACITY
• FUND BAL

• EXAMINE KEY ECON/FISC INDIC
• UPDATE BUDGET MANUAL/CALL TO REFLECT CHANGES
• PERF ANALYSIS OS EXISTING REV STRUCTURE

• BUDG HAS MORE DETAIL
• BUDG HAS GOAL/OBJ
• BUDG ARE PUBLIC DOCS
• BUDG ARE APP BY GOV BODY
• FINANCIAL PLANS ARE NOT PUBLIC DOCS OR APP BY GOV BODY

WHEN A HIGHER LEVEL OF GOV MAKES A LOWER LEVEL PERF SPECIFIC TASK OR MEET A STD

OBLIG INCURRED/RECEIPT OF GOODS/SERVICES NOT OCCURRED

• 4 PRIN
• 12 ELEMENTS

• 1 - EST GOALS TO GUIDE DECISIONS
• 2 - DEVELOP APPROACHES TO ACHIEVE GOALS
• 3 - DEVELOP BUDGET ACC TO GOALS
• 4 - EVAL PERF/MAKE ADJ (DO CONSTANTLY)

• 1 - assess needs/priorities
• 2 - ID OPPORT/CHALLENGES FOR GOVT SVCS, CAP ASSETS/ MGMT
• 3 - DEVELOP/DISSEMINATE BROAD GOALS

• 4 - adopt fin policies
• 5 - dev programmatic/op/cap policies/plans
• 6 - DEV RPG/SVCS CONSISTEND W/ POLICIES/PLANS
• 7 - DEV MGMT STRATEGIES

• 8 - DEV PROCESS FOR BUDGET PREP/ADOPT
• 9 - DEV/EVAL FIN OPTIONS
• 10 - MAKE CHOICES NECC TO ADOPT BUDGET

• 11 - MONITOR/MEASURE/EVAL PERF
• 12 - MAKE ADJ AS NEEDED

• HOW MUCH CHANGE IN PROP TAX RATE IS OK IN A YR
• HOW WILL 1X REV BE USED
• HOW FREQ SVC CHG/FEES REVIEWED

UNREST FB THAT SHOULD BE MAINT IN GF BASED ON GOVT'S OWN SPECIFIC CIRCUMSTANCES

• A)PREDICTABILITY OF REV
• B) VOLATILITY OF EXP
• C) RISK TO SIGNIF 1X OUTLAYS (DISASTERS)
• D) COMMITMENTS & ASSIGNMENTS
• E) CONFORM W/ LEGAL/REGULATORY CONSTRAINTS

• GUIDE CREATION/MAINT/USE OF RESOURCES FOR STABILIZATION
• ID PURPOSE FOR USE OF FUNDS
• VVVVVV

FINANCIAL ACTIONS IN EMERGENCIES

• GUIDE ISSUANCE/MGMT OF DEBT
• WHAT IS MAX L.T DEBT BURDEN
• WHAT MIX OF LTD & CURR REV WILL BE BASIS FOR CAP IMPR
• HOW WILL BOND PROCEEDS BE USED
• WHAT WILL STD BE USED FOR

• MECHANISMS FOR BUDGET COMPLIANCE
•   MGMT PROCESS/SYST IN PLACE TO ENSURE COMPLIANCE
•   INSTITUTE PROC TO REVIEW BUDGET PERIODICALLY

• FULL COST
• DIRECT COST
• INDIRECT COST
• LIFE-CYCLE COSTS - INCLUDE COSTS IN ADD TO PURCH PRICE OVER LIFE OF ASSETS (INCL R&M, FAILURE COSTS, MONEY COSTS(INT & OPPORTUNITY) - USEFUL TO DECIDE ON PURCH OF MAJOR ASSET
• OPPORTUNITY COST
• SUNK COSTS - NOT RELEVANT IN ANALYSIS.  IGNORE WHEN EVAL FUTURE DECISIONS
• MARGINAL COSTS

• EXPAND SERVICE W/O INC IN COST
• DIFF IN COST/DIFF IN UNITS = MARGINAL COST

• INPUT - RESOURCES USED TO PRODUCE OUTPUT OR OUTCOME
• OUTPUT - COMPL ACTIVITY/AMT OF WORK DONE
• EFFECTIVENESS - DEGREE THAT GOALS/OBJ ARE MET W/IN DEADLINES
• EFFICIENCY - MEASURES AMT OF OUTCOMES/UNIT OF RESOURCES ALLOCATED

% OF PART WHO GET JOB TRAINING THAT KEEP JOB

• BE LINKED TO PROG GOALS/OBJ
• GIVE PRIORITY WHERE GOALS ARE ACHIEVED
• MEASURES S/B VALID, RELIABLE, VERIFIABLE (QUANTIFIED ASSESSMENT)
• LINKS BUDGET BY EST PERF MEASURES AGREED UPON BY MGRS/DECISION MAKERS

• WHAT DID WE DO?
• HOW WELL?
• HOW HARD DID WE TRY?
• WHAT DID WE PRODUCE?

• SMART - FOCUS ON RESULTS
• SPECIFIC
• MEASURABLE - REDUCTION %
• ATTAINABLE - DECREASE PROCESSING TIME
• RELEVANT
• TIMELY

CONSISTENT & MEASURABLE

S/B DECENTRALIZED TO ACHIEVE CONSENSUS ON FORECAST

• CONSENSUS - GROUP REACHES AGREEMENT BASED ON PREV COLL PATTERNS/ EXPERIENCE/ KNOWLEDDGE OF HIST EVENTS
• JUDGEMENTAL - INFORMED DECISION BASED ON HISTORY/GEN ECON CONDITIONS
• EXPERT - USE ECONOMISTS, DEMOGRAPHERS, MKT RESEARCHERS, SOCIAL SCIENTISTS TO STUDY TRENDS

JUDGEMENTAL

• RESPONDS TO POLITICAL PRESSURE
• FOCUS ON CURR ISSUES/EVENTS
• LACK OF COMPARABILITY OVER TIME - USES BEST GUESS
• SUBJECTIVE VS OBJECTIVE

• - RELIES ON NUMERICAL DATA ENABLING TESTING TO SEE IF UNDERLYING DATA ASSUMPTIONS ARE MET
• - REQ EXT AMTS OF HISTORICAL DATA TO GENERATE DEPENDABLE PROJ
• WANT AT LEAST 40 DATA POINTS OF NUMERICAL DATA

• TREND ANALYSIS
• LINEAR/MULTIPLE REGRESSION ANALYSIS
• TIME SERIES ANALYSIS - FORECAST REV BASED ON FIN DATA OVER EXT PDS
• ECONOMETRIC FORECASTING - PROJ FUTURE REV BY TAKING INTO ACCT ECON FACTOS THAT INFLUENCE THE REV SOURCE
•   SALES TAX
•   USER CHARGES (PERMITS)
•   REAL EST REV

REV=COSTS

• REV/UNIT
• FIXED COSTS
• VAR COSTS
• # OF UNITS

DISCOUNTING - PROCESS OF CONVERTING FV INTO TODAY'S $

• ADOPT RESO SUPPORTED BY DATA & ANALYSIS
• MUST HAVE FINDING OF NECESSITY

REQ MUNICIPALITY TO EST AN EQUITY STUDY COMM BEFORE ADOPTING NEW RATES - CAN DO RTE INC 5% every 2 YEARS

CONSTRAINS USE STATE REV SH FOR DEBT SVC IN EXCESS OF GUARANTEED ENTITLEMENT AMOUNT

PROJECTS ARE PLACED IN OUT YEARS & MOVED UP EACH YEAR UNTIL THEY ARE INCLUDED IN CY BUDGET

BE SURE TO INCLUDE IMPACT ON FUTURE OPERATING COSTS

• AS A FINANCIAL PLAN
• AS A POLICY DOCUMENT
• AS AN OPS GUIDE
• AS A COMMUNICATION DEVICE

• CONSIDERATIONS:
• RAISE TAXES?
• # OF CITIZENS BENEFITED?
• SAFETY ISSUES

• CURR REV OR FB (PAY AS YOU GO)
• DEBT (PAY AS YOU USE)
• TIF BONDS - USE WITHIN CRD
• GRANTS
• IMPACT FEES

27 IN TOTAL

14

• ENTITY-WIDE FIN POLICIES
• ARTICULATES PROBLEMS/ISSUES THAT DROVE THE BUDGET
• PROCESS FOR PREPARING/REVIEWING/ADOPTING BUDGET - CALENDAR/LEVEL OF CONTROL

• SUMMARY OF REV/EXP, SOURCES/USES TO PROVIDE OVERVIEW FOR ALL RESOURCES
• SUMMARY OF REV/EXP/OTHER FIN SOURCES/USES FOR 3 YEARS - PY ACT, CY BUDG/PROP BUDGET
• PROJ CHANGES IN FB
• DECRIBE MAJ REV SOURCES/EXPLAIN ASSUMPTIONS FOR ESTS & DISCUSS TRENDS (AT LEAST 75%)
• BUDGETED CAP EX
• FIN DATA ON CURR DEBT OBLIG/DESC OF REL BETW CURR DEBT LEVELS & LEGAL DEBT LIMITS (NO STATE LEGAL LIMIT)

• ORG CHART
• SCHED OR TABLE SUMMARY OF PERSONNEL/POS COUNTS FOR PY ACT/CY BUDG/NEXT YR BUDG - NOTE CHANGES IN STAFFING
• DESC ACTIVITIES/SVCS/FUNCTIONS

• TOC
• OVERVIEW OF SIGNIF BUDGETARY ISSUES

RECCOMENDED BUT NOT NECESSARY