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City of Peachtree CornersPreliminary Expenditure Review
May 22, 2012
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Workshop GoalsReceive feedback and direction from Mayor and City Council as
we begin to develop the FY13 Budget
Develop a consensus on short-term priorities and first year needs
Discuss and develop an understanding of FY13 planning assumptions
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Agenda for WorkshopDiscussion of Budget Principles and Goals
Discussion of Establishing an Undesignated Fund Balance Reserve
Discussion of Planning Assumptions
Review of Draft Expenditures
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Budget Principles
Conservatively determine revenue and expenses Solid estimating effectively neutralizes pressures to inflate revenue
estimates to cope with budgeting pressures
Do not use one-time revenue sources for ongoing expenses When a non-recurring source of revenue is used to fund an ongoing
expense, an "automatic unfunded increase" is built into the budget for the following year
Recognize that there are numerous Unknowns when starting a new City
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Draft Budget Goals
Determine level of servicesProvide funding for Start-up Costs
Facility and Support Equipment Call Taking Capability
Provide funding for Must Do’s Insurance Finance and Accounting Legal Services Comprehensive Plan
Provide Funding for Unforeseen Start-up ExpendituresEstablish a Fund Balance Reserve (Emergency Fund)
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Level of ServicesDetermine what level of services to provide at start-up
What do we need to provide? What do our customers expect?
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Suggested Must Do’s
Key Staff
Legal Services
Facility and Maintenance
Furniture
Equipment (Computers, servers, copiers, scanners)
Support Services Telephone, Internet, IT
General Liability Insurance
Accounting
Audit Report
Call Center
Comprehensive Plan
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Contingency BudgetProvides funding for unforeseen operating
expenditures that will occur when starting a new City
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Fund Balance ReserveAdopted as part of the approved Budgetary Policy
Fund Balance is the cash reserve and working capital to cover the following: Expenditures caused by unforeseen emergencies Shortfalls caused by revenue decline Eliminate short-term borrowing for cash flow purposes Best practices call for Reserve no less than three (3) months of operating
expenditures (25%)
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(Draft) Expenditure Planning Assumptions
City will hire key staff including: City Manager City Clerk Accounting Manager Planning and Zoning Manager Administrative Assistant
City will provide Legal Services
City will provide Citizen response services via telephone and internet
City will provide funding for unforeseen expenses and emergencies (Contingency and Fund Balance Reserve)
City will lease office space with necessary equipment and systems to conduct business
City will engage a planning firm to assist with preparing a Comprehensive Plan
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(Draft) Expenditure Planning Assumptions - Continued
City will prepare Comprehensive Annual Financial Report and provide funding for Audit Services
City will provide funding for the development of a Communications Plan and on-going activities necessary to effectively communicate with Neighbors and Businesses
City will provide funding for General Liability Insurance
Draft Expenditures for FY2013
General Fund Department 2013 Projected Expenditures
City Council 83,111City Manager 159,829
General Operations 962,500Finance 188,677
Legal Services 225,000Facility Management 158,000
City Clerk 110,892Contingency 350,000
Community Development 131,218Designated Reserve 500,000Total General Fund: $2,869,225
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Discussion