Municipal Budget Process Flashcards
Where should you advertise the resolution for introduction of the budget?
In your official newspaper
List three types of budgeting concepts
Line Based Budget
Planning Programming Budgeting Systems
Zero Based Budgeting
Which concept are municipalities required to use by law?
Line Based Budget
Which budget concept is based on what you plan to spend without regard to previous years Spending?
Zero Based Budget
Name some of the duties of the Chief Financial Officer.
Assist in Budget Preparation Assemble Revenue Estimates Prepare Expenditure Analysis Preparation of Annual Financial Statement Annual Debt Statement Supplemental Debt Statement Cash Flow Advice
Is the CFO permitted to cut the Budget?
No
What are some of the main purposes of the budget?
Financial Control - Primary purpose by Law
Policy Instrument - Focus Priorities, policy reform
Management Tool - Basis for management of operations
Economic tool - Spending money in areas needed
Name some types of funds
Current Fund - general revenues, tax revenue, appropriations for general government operations
Trust Funds - dedicated fund monies
General Capital - Issuance of debt - Bond Anticipation Notes
Utility - Specific service - water, sewer, electric, pool
Which fund is for a dedicated purpose?
A Trust Fund
What are the two sides of the budget?
Revenues and Appropriations
Are taxes considered revenue?
No
What does Pilots stand for
Payment In Lieu of Taxes
Name some examples of revenue
Consolidated Municipal Property Tax Relief(CMPTRA) ABC License Fees Fees and Permits Municipal Courts Parking Meter Collections PILOTS Interest on Investments Cell Tower Rental
Does the budget require a majority of all sitting members to pass?
Yes, a super majority
The municipal budget runs on a______ year.
Calendar
What must the governing body adopt in order to conduct business in the first quarter of the year?
A Temporary Budget
When does the budget year start?
January 1
The budget has to be introduced by______
Feb. 10
The public budget hearing has to be advertised 10 days prior to the hearing. True or False?
True
You do not have to have the public hearing before adoption. True or False?
False
When must you adopt the temporary budget?
Between Jan 1 and Jan 15
What is 26.25%?
The temporary budget amount may not exceed 26.25% of the total budget of the preceding years appropriations
What is the state fiscal year?
7/1 - 6/30
What is NJSA?
New Jersey Statutes Annotated
Are budget transfers permitted?
Yes, during the last two months and the first three months of the succeeding year
Are there provisions for emergency appropriations?
Yes but the amount of the appropriation must be raised by taxation the following year. It is financed by surplus at the time and required to have 2/3 of the full membership agree
Budgets cannot be amended before or after adoption. True or False?
False, budgets may be amended
Who approves municipal financing?
The governing body
How does financing get approved?
By Ordinance
A municipality with under 10,000 population requires a___
year plan with the Capital Budget.
3 year plan
Is a Capital Budget required to operate on a calendar year?
No.
The useful life of equipment must be how many years?
Five
What is the minimum down payment?
5%
The Capital Plan for over 10,000 is 6 Years. True or False?
True
What items are included in the Capital Budget?
Short Term Notes
Bond Anticipation Notes
Issued for 1yr or less but renewable up to 5 years
Interest on notes generally lower than bonds
Long Term Bonds
Minimum 5 yrs. but as long as 40 yrs.
minimum life of project must be at least 5 yrs.
every bond requires a 5% downpayment
A Capital Bond is like your mortgage
5% down and is financed through traditional financing
Where is the Capital Improvement Fund located?
Located in the current Fund
Capital often implies debt but is not the case for the Capital Improvement Fund. True or False?
True
What are some things you can charge to the Capital Improvement Fund?
Surveying, Architectural and Engineering Fees
Can the Capital Improvement Fund be used to fund a project?
Yes
Appropriations minus Revenues equals_____?
Amount to be collected by taxes
