Budget 101

1. Budget 101

2. overview • Basic Fundamentals of Budgeting • Overview of the 2013 Budget • Day to Day Tasks of the Budget Office

3. Fundamentals Of Budgeting

4. Budgeting Lesson #1 • Revenues - $$ that is received as income. • Expenditures - $$ that is spent on personnel costs and the acquisition of good and services. REVENUES = EXPENDITURES

5. Budgeting Lesson #2 • Each fund is a separate checkbook. • The budget determines what checks will be written. • Some departments have multiple checkbooks. • Most checkbooks are shared between various departments.

6. Budgeting Lesson #3 • Fixed Expenses • Administrative Fees • Health Insurance Rates • Vehicle Lease Fees • PC Replacement Fees • Variable Expenses • Fuel • Propane • Gas • Copying Charges

7. Budgeting Lesson #4 • Operational Budget • Provides funding for the day-to-day operation of the City. • Details the costs associated with operating the organization such as personnel, contractual services and commodities. • Supported by current revenue. • Capital Budget • It is a multi-year planning instrument. • Provides funding for the construction of roads, bridges, building, water and sewer facilities, parks and other pieces of infrastructure. • Supported by issuance of long-term debt, grants, and special benefit districts.

8. Quiz • Operational or Capital Budget? • Contract for merit/market trend analysis. • Construction of a Community Center. • Fixed or Variable Expense? • Health insurance rates. • Propane costs. • How many checkbooks? • Public Works has divisions in the general fund and the motor fuel fund. • Public Works and Police have divisions in the general fund. • Revenue or Expenditure? • An Olathe citizen purchases a pool pass for the summer. • A consultant assists the City with evaluating health care trends.

9. Overview Of the 2013 Budget.

10. 2013 Total Budget • $280,474,089

11. 2013 Revenue Assumptions • Property Tax – 1.4% decrease • Sales Tax – 2% increase • Franchise Fees – 1% increase

12. 2013 Revenue Sources General Fund AllFunds

13. Revenue by Type • Sales Tax - A tax levied by a state or City on the retail price of an item, collected by the retailer. • Property Tax - A tax on the assessed value of property. • Franchise Fees - A franchise is a privilege granted by a local governing body to a specific investor-owned utility (e.g., electric, natural gas, telecommunications, etc.) that allows the utility to have facilities on public property (e.g., poles and wires in alley easements, etc.). • Fines and Forfeitures - Fine and forfeiture revenue includes traffic fines, false alarm fines, parking fines, and animal control fines. This revenue source also includes court fines. • “Other” revenue includes: Intergovernmental, such as local alcohol tax and grant reimbursements; Licenses and Permits, such as building and construction permits and dog tags; Charges for Service, such as recycling fees and alarm registration; Miscellaneous revenue, such as ball field rental and building leases; and Transfers from other funds.

14. 2013 Expenditure Details All Funds General Fund

15. Sales Tax – Where Does it Go?

16. Property Tax – Where Does it Go?

17. Types of Funds • Special Tax supported • Motor Fuel Fund • Special Alcohol • Park Sales Tax • Economic Development • Internal service funds • Central Garage • Risk Management • Vehicle Replacement • Personal Computer • Tax supported • General Fund • Debt Service Fund (CIP) • Fee supported • Storm Water • Solid Waste • Water & Sewer • Recreation Fund

18. Fast Facts • 20 Funds • 12 Departments • 838.25 Authorized Positions • Over 100 Programs

19. Quiz • T/F the majority of the 2013 budget will be spent on capital expenses. • Name an example of a franchise fee. • T/F The recreation fund is tax supported. • How many authorized positions are there for 2013?

20. Day to Day Tasks Of the Budget Office

21. Budget Office Structure

22. Role of the Budget Office • Prepare the Budget • Create a strategic planning plan to establish budget priorities. • Prepare revenue projections for each revenue source • Conduct expenditure analysis- ex. Make adjustments for inflation, review workload increase/decrease, evaluate benefit costs. • Create parameters for departments to follow when preparing base budgets. • Review submitted base budgets • Communicate departments base budget changes to the Budget Team and to departments. • Create and publish a Budget Document.

23. Role of the Budget Office • Assist in the Adoption of the Budget • Create a budget calendar for the Council. • Participate in public information meetings • Set up and run Council workshops • Follow up on any Council questions. • Make final revisions based on Council decisions. • Fill out and submit state budget forms.

24. Role of the Budget Office • Monitor the Budget throughout the year. • Monitor and update revenues • Prepare monthly report s comparing actual to budgeted expenditures for departments. • Assist the departments in making any necessary changes throughout the year. • Meet with departments quarterly to review the current year budget.

25. Budget Assignments • Emily Vincent – Budget Manager • Fire • Resource Management • Anne Bradley – Budget Analyst • Administration • City Auditor • Communications and Customer Service • Information Technology Services • Police Nickie Lee – Budget Analyst • Legal • Municipal Court • Parks and Recreation • Public Works Eric Roche – Intern • Assist with special projects

26. Other Duties as Assigned • Capital Improvements Plan (CIP) coordination • 3rd Grade program • Health Insurance and Benefit Analysis • Employee Benefits Committee • Workforce Optimization • Enterprise One Training Team

27. Quiz • T/F The analysts are all responsible for the same departments. • Which one is false? • The budget team prepares a budget. • The budget team assists in the adoption of the budget. • The budget team votes on the budget. • The budget team monitors the budget throughout the year.

28. Questions