Municipal Budget Process Flashcards
Local Budget Law requires this. Listing of intended expenditures
Line Based Budget
Listing of expenditures on the basis of work expected to be completed.
Planning Programming Budgeting (PPBS)
Starting with zero than justify each purchase regardless of past spending history
Zero Based Budgeting (ZBB)
> Assist in budget preparation
Preparation of Annual Financial Statement
Annual Debt Statement
Supplemental Debt Statement
Cash Flow advice
Chief Financial Officer
Primary purpose, required by law
Financial Control
Focus priorities, policy reform
Policy Instrument
Basis for management of operations
Management tool
Spending money in areas in need
Economic tool
Consists of general revenues, tax revenue, appropriations- general gov’t operation.
Current Fund
Dedicated fund monies collected are used for that activity- Dog Trust Fund, Assessment Fund
Trust Funds
Issuance of debt, BAN
General Capitol
Specific service- water, sewer, electric, pool
Utility
What are the two sides of a budget
Appropriations and revenues
> Consolidated Municipal Property Tax Relief (CMPTRA)
ABC License Fees
Fees & Permits (dogs, cars, construction)
Court
Parking Meter Collections
Revenues
Money going out
Appropriations
Budget year starts on January 1st but you don’t need to adopt till
March 20
Temporary budget shall not exceed___ of the total budget of the preceding years realized appropriations.
26.25%
> 1/1-12/31
Introduction-Feb 10th
Advertisement- 10 days prior to hearing
Public Hearing- before vote for adoption
Adoption- March 20th
Calendar year budget
> 7/1-6/30
Introduction- July 27th
Advertisement- 10 days prior to hearing
Public Hearing- before vote for adoption
Adoption- Sept. 1st
State fiscal year budget
Permit appropriation transfers to be made last two months of the year. Also allows transfer during the first three months of succeeding year.
N.J.S.A. 40A:4-58
N.J.S.A. 40A: 4-46 provides for__ but must be raised by taxation. Financed by surplus and is required to have 2/3 of full membership agree.
Emergency appropriations
N.J.S.A. 40A: 4-87 enables the budget to be ___ under certain circumstances except for grants.
amended
For a capital budget with a population under 10,000 you need a __ year plan
3
For a capital budget with a population over 10,000 you need a __ year plan
6
> Bond anticipation notes (BANS)
issued for year or less and renewable up to 5 years
Interest on notes generally lower than bonds
Short Term Notes
> Minimum 5 years but as long as 40 years
Minimum life of project must be five years
Every bond requires 5% down payment
Long Term Bonds
Where does the 5% come from? located in current fund
Capital Improvement Fund
