What is the City Budget?

What is the purpose of the City Budget?

The City's Budget is an important policy document that outlines the financial roadmap for the City's activities over the course of the year.  The budget outlines how the community's resources are allocated between good and services that the community needs and expects.

Why does the City need to have a budget each year?

Local governments are required by law to have an annual budget approved each year.  

What is a fiscal year and when does the City's fiscal year start and end?

A fiscal year is an accounting period measurement used for reporting purposes.  The City's fiscal year aligns with the calendar year covering activity from January 1st - December 31st.

Who approves the City budget?

The City Council approves the City's budget for the next fiscal year by resolution each year in December.

How is the budget funded?

Where does the City's money come from?

City funds come from a variety of sources including tax revenues, fees for services, debt services (bonding), and in some instances, grants from other entities.

What are the main revenue sources for the City?

The primary revenue sources for City operating expenses are tax revenues and fees for services.  Larger capital projects often require bonding/financing, and utility services are paid by fees for services.

Why can't money from one fund (like water or sewer fees) be used for something else (like parks or police)?

Governmental accounting principles require that funds for specific activities are recorded, monitored, and reported in segregated accounts.  This is best way to ensure transparency and accountability.

How is the money spent?

What does the City spend money on?

The City spends money on goods and services needed to maintain and enhance City operations.

What are the largest expense categories in the City's budget?

In the General Fund (the City's operating budget), the largest expense is staff costs including salaries and benefits.  Other significant expense categories include contract services, supplies, and central garage charges. 

What's the difference between the City's operating budget and capital budget?

The Operating Budget addresses the day-to-day operations of the City.  The Capital Improvement Plan, which encompasses several capital budgets, addresses large improvement projects such as street reconstruction or utility system improvements.

Who is involved in the budget?

Who prepares the City's budget?

The budget is prepared by City staff

Who approves the final budget?

The final City Budget is approved by the City Council.  This is completed by resolution in December each year.

What role do residents play in the budget process?

Residents are encouraged to attend meetings, ask questions, and provide comments regarding the City's budget.

How does the budget process work?

 How is the budget created each year?

The budget process is a collaboration between the City Manager, City staff and the City Council.  Several meetings are held throughout the process where staff and Council discuss how to meet the needs of the residents.  The resulting policy document is the annual budget.   

What is the timeline for proposing, reviewing and adopting the budget?

Preparation of the City budget is a lengthy process that begins in April each year.  City staff present budget information to the Council and Financial Commission from June through November.  The Preliminary Levy and General Fund budget must be approved by the end of September each year, and the City's final and complete budget and final tax levy must be adopted by the end of December each year. 

What happens if revenues come in lower than expected?

Throughout the year, staff monitor revenues to ensure there are sufficient funds available to pay for the goods and services needed to maintain City operations.  In the event revenues are lower than expected, City staff review current operations to determine if there are any budgeted items that can be deferred to the next year.  The City also maintains operating reserves that may be used to cover any shortfalls in revenue collections.    

Learning More

How can residents get involved or provide input on the budget?

Residents are encouraged to attend (either in-person or virtually) the joint Council/Financial Commission meetings where the budget is discussed.  These meetings are posted on the City calendar.  Any input may be sent to the City Councilmembers.

Where can I find more detailed information or past approved budgets (do we want to link to this?)