Practice Tip: Budget proposals are made up of estimates and predictions about the future that are based on historical data and trends. The clerk is responsible for preparing the estimates for interest and debt redemption requirements and all other estimates not being prepared by the department heads, including the amount to be raised by ad valorem taxes and unencumbered fund balances estimated to be available at year end. For a simple example, see MRSC's Sample Budget Request Letter. The budget process begins with the “request for budget” when the clerk requests all department heads and those in charge of municipal offices to prepare detailed estimates of the probable revenue from sources other than ad valorem (property) taxes and of all expenditures required by his or her department for the next fiscal year (calendar year). Statutory Deadline: On or before the second Monday in September, or at such time as the city or town may provide by ordinance or charter. We suggest that you consider incorporating these pre-budget steps into your budget calendar.įor help crafting your financial policies and procedures, see our Financial Policies Tool Kit, which provides detailed guidance and key questions to consider for a number of financial topics, as well as links to best practices and sample documents from other jurisdictions. Updating your cost allocation formulas and data will help enhance the budget forecasting numbers.Capital facilities plan updates are required for GMA cities, and capital improvement plan updates are vital to the budget planning process.

Strategic planning sessions, budget retreats, and financial policy updates provide direction and focus to the budget process.

There are a few items that are not addressed within the budget statutes but are considered essential to local government financial planning. The guidelines and procedures posted here reflect the statutory language. Similarly, the statutes refer to the “chief administrative officer” (CAO), but this definition includes mayors, city managers/administrators, or the budget/finance officer designated by the CAO to perform these functions. The “clerk” is defined in statute as “the officer performing the functions of a finance or budget director, comptroller, auditor, or by whatever title may be known…” For instance, many of the budget statutes refer to the “clerk,” but the title of 'clerk' might be the clerk-treasurer or finance director in your jurisdiction. The roles of the budget makers may vary by municipality. This is because state law requires that city biennial budgets begin on January 1 of an odd-numbered year.įor more information and examples of biennial budgeting processes, see our page Biennial Budgeting.

For cities adopting a biennial budget, the procedures on this page only apply in even-numbered years, with the mid-biennium budget review taking place in odd-numbered years.

Budget planning process