20 Dec 2016

MUNICIPAL BUDGETING AND FINANCE

 

 Budget Flow Chart 

What is a Municipal Budget?

  • A City budget is a Plan
  • It is based on projections
  • Actual experiences may vary and we may need to adjust the budget during the year
  • Budget sets policy for the upcoming year and determines projects that will be undertaken, etc.
  • It is also a communication tool

What is the City doing to Manage our Financial Situation?

  • Raised new revenues
  • Reviewing user fees for service
  • Cost Control
  • Doing More with Less
  • Lean – Reducing costs and improving service

How does the City monitor the finances?

  • Monthly budget to actual report
  • Monthly bank reconciliation
  • Quarterly budget line-item review per fund
  • Regular project status reports
  • Annual Audit
  • Annual Report

Who are the members of the City’s Finance Team?

  • Elected Officials:  Mayor Diana Willits, Council members, Betty Glover, Threase Harms, Zachary Henry-Bales, Steve Peterson, and Tony Timm
  • City Staff
  • Project specific technical experts (i.e. Engineers, Des Moines Water Works, MidAmerican Energy, etc.)
  • Independent financial advisors (i.e. Tionna Pooler)
  • Bond Counsel
  • Citizens

What is the Budget Process or Timeline? (See Flow Chart)

August – Update the Insurance Renewal

September/October – Update Capital Improvement (CIP) and Equipment Revolving Plans (ERP), presentation and discussion with Council Public Works Committee, update CIP, ERP and Tax Increment Finance (TIF) projections, presentation and discussion with Council Budget Committee on process, plans, services and cost saving

November – Staff working on all budget worksheets

December – Council Budget Committee reviews Hotel/Motel (H/M), TIF, CIP, and ERP spreadsheets and makes a recommendation

January – Staff fine tunes budget by line item

February – Council Budget Committee recommends Council approve H/M, TIF, CIP and ERP.  Budget work session occurs and then Council sets the Public Hearing

March – Public Hearing and Approve Budget

How is a Capital Improvement Plan (CIP) put together?

  1. Staff reviews the Strategic Goals and Initiatives approved by the City Council.
  2. Staff collects data from Public Works, City Engineer, Des Moines Water Works, MidAmerican Energy, etc.
  3. The data is rated; which provides objective information that is fact-based, measurable and observable.
  4. The City Engineer provides probable costs for top priority projects.
  5. Staff meets with the City’s Financial Advisor to review the debt service levy and short and long-term financial position of the City.
  6. Staff presents a draft to the Council Public Works Committee for review and feedback.
  7. Staff presents a draft to the Council Budget Committee for review and feedback.
  8. The Council Budget Committee presents the final draft to the City Council for approval.
  9. The City Council approves the Budget, including the Capital Improvement.