Budgeting Essentials

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Budgeting Essentials

• Mike Bailey, Administrative Services Director
• City of Lynnwood
• Gayla L. Gjertsen, Finance Director
• City of Tumwater
• Co-Sponsored Washington Finance Officers
  Association

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Session Goals

• Review key terms concepts
• Discuss key elements of the budget
• Budget Process how does it work?
• Lets discuss policies how and why

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Definition of a Budget

• The Budget should be an economic plan that
  focuses the entitys financial human resources
  on the accomplishment of specific goals
  objectives established by the policy makers.

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further.

• The budget establishes the annual (or
  bi-annual) expenditure levels for all departments
  funds.
• These expenditure levels are called
  appropriations, and they represent spending
  limits.

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Why Have Budgets?

• Legally required
• Accountability
• Evaluation
• Planning
• Information
• Conflict Resolution

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Mission of the Budget Process

• The mission of the budget process is to help
  decision makers make informed choices about the
  provision of services and capital assets and to
  promote stakeholder participation in the process.
• National Advisory Council on State and Local
  Budgeting
• (NACSLB)

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NACSLB
1. Stakeholder Input
2. Vision/Mission Goal setting
8. Adjust as necessary
3. Short-term goals
7. Monitorresults
4. Direction to staff
6. Adopt budget
5. Operating / budget Impacts
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Budget Policies

• Stabilization funds
• Fees Charges
• Debt issuance Management
• Debt level capacity
• Use of one-time revenues
• Use of unpredictable revenues
• Balancing the operating budget
• Revenue diversification
• Contingency planning

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Mandatory ProcessRCW 35.33/35A.33
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Community Calendar
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What to Do First, Second,.?

• Develop a budget calendar
• Start with the required (State Law) steps
• Add internal (community driven) steps
• Give direction Call letter
• Re-state mission or goals
• Possible limit of base budget requests
• Establish parameters
• Revenue projections
• Maintaining or restating established policy
  statements

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What to Do First, Second,.?

• Enhancement requests
• Provide forms (electronically) with clear
  directions
• Follow-thru with prior Council/Board goal
  statements
• Clarify roles
• Legislative/Policy makers vs. Administration
• Staff and other Stakeholders

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Some thoughts

• Start with what you know ( or think you know)
• Property taxes
• State shared revenues
• Salaries benefits
• Debt service
• Contracts

• Add assumptions for more volatile items
• Sales Use tax
• Business tax
• Utility tax
• Building permits
• Other development costs

Each Communitys tax base is unique
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What tools are available?

• MRSC Budget Suggestions
• Population Estimates - OFM
• New Construction s
• CPI-COLA
• Legislative Changes

• GFOA - NACSLB
• www.gfoa.org
• Your own permit counter
• Higher Education
• Business Community
• And always the
• The Web

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NOT ENOUGH?

• SEE AND HEAR MORE IN
• LEAVENWORTH
• AUGUST 18 19