Understanding Local Government Finance: Key Definitions and Budget Insights
This document outlines important financial concepts related to local government operations, including terms such as Levy, Local Government Aid Revenue (LGA), expenditure, encumbrance, capital, and the Capital Improvement Plan (CIP). It highlights that the City generates a total LGA of $8,702,000 with a budget cycle totaling $1,399,386. We explore critical aspects of budgeting, including revenue estimation, expenditure tracking, and the distinction between subsidy and non-subsidy financing in a given budget year.
Understanding Local Government Finance: Key Definitions and Budget Insights
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Presentation Transcript
Terms Levy- Amount of money the City has to tax to operate LGA – Local Government Aid Revenue – Amount of money the City generates Expenditure – Amount of money the City spends Encumbrance – The transferring of money from one budget year to be spend the following year Capital – Any item that is over $5,000 and will last more then five years CIP – Capital Improvement Plan
Use of LGA Total LGA - $8,702,000 Total LGA - $8,702,000
Expenditure / Revenue • Any Given Budget Year • How do we estimate • Over/ Short outcomes • Subsidy vs. Non-Subsidy
