1. GATEWAY AREA DEVELOPMENT DISTRICT CITY BUDGET WORKSHOP February 20, 2019
Guest Presenter Mr. Andy DeMoss, CPA Partner RFH, PLLC Lexington, Kentucky

2. Agenda
EXECUTIVE & LEGISLATIVE ROLES ORGANIZATION OF CITIES ROLES IN THE BUDGET PROCESS TEAM APPROACH
CITY ACCOUNTING BASICS
BUDGETING CONCEPTS ESTIMATING EXPENDITURES CAPITAL AND NONRECURRING ITEMS REVENUE FORECASTING THE BUDGET ORDINANCE PUBLICATION
ANNUAL FINANCIAL AUDITS
CURRENT ISSUES
QUESTIONS AND ANSWERS

3. POWERS AND ORGANIZATION
HOME RULE (KRS )
ORGANIZATION PLANS (KRS 83A.030)
MAYOR-COUNCIL
COMMISSION
CITY MANAGER
EXECUTIVE VS LEGISLATIVE

4. MAYOR-COUNCIL

5. MAYOR-COUNCIL PLAN The Mayor’s responsibility
The executive authority of the city is vested in the mayor, whose powers and duties are as follows:
Enforce the Mayor-Council plan, city ordinances and orders, and applicable state statutes
supervise all city departments and the conduct of all city employees
Preside at all meeting of the city council, but shall not be a member of the council nor have a vote except to break a tie
make or execute all bonds, notes, contracts, and written obligations of the city

6. MAYOR-COUNCIL PLAN
Maintain liaison with local governments with respect to all inter-local contracting and joint activities
Report no less than annually to the city council regarding the activities and condition of the city
Promulgate procedures for administering city government, subject to disapproval by the council
Be the appointing authority for all city employees, except for the staff of the city council
may administer official oath to any elected or appointed officer of the city

7. MAYOR-COUNCIL PLAN
Additionally, since the mayor is the executive authority, he possesses the power to appoint all city officers, subject to approval by the council and he is charged with preparation and administration of the city budget
The mayor possesses veto power over all ordinances passed by the council; however, if he fails to either sign or veto an ordinance within ten days, it shall become effective without his signature.
The mayor may delegate his powers and duties to subordinate officers and employees, and such delegation shall be by executive order. All executive orders shall be kept in a permanent file.
When the mayor is temporarily absent from the city he may appoint a person to perform his duties, except his duty to preside over the council.

8. MAYOR-COUNCIL PLAN City council responsibilities are as follows:
City council-- Legislative power is vested in the city council, and the council may not perform any executive function except as expressly permitted by statute [KRS83A.130(11)]
The council shall hold regular meetings, no less than monthly, at such times and places as fixed by ordinance. Special meetings of the council may be called by the mayor or by a majority of the members. Minutes shall be kept of the proceedings of all meetings of the council. The minutes shall be signed by the city clerk and the presiding officer. The mayor shall preside at meetings. The council may set by ordinance the manner in which a member of the council shall be selected to preside in the absence of the mayor (KRS 83A.130).

9. MAYOR-COUNCIL PLAN
The council possesses only legislative powers. The council:
establishes all appointive offices and their duties and responsibilities
provides for sufficient revenues to operate the city, and appropriates all such funds in an annual budget
establishes codes, rules and regulations for the public health, safety and welfare [KRS83A.130(12)]
May investigate all activities of city government, and in furtherance of such investigation may require any officer to submit a sworn statement regarding the performance of his duties; if the officer under investigation is under the jurisdiction of the mayor, the mayor shall be given written notice and shall have the right to review any statement to the council and to appear on behalf of any department, office or agency [KRS 83A.130(13)]

10. COMMISSION PLAN

11. COMMISSION PLAN
The commission plan government is composed of a mayor and four commissioners, who together make up the City Commission [KRS 83A.140(2)]. Instead of powers being divided among the executive and legislative branches, all executive, legislative and administrative powers are vested in the city commission
Mayor-The mayor’s only formal duties are presiding at meetings of the commission, calling special meetings of the commission, administering oaths, and executing and signing all bonds, contracts, notes, and written obligations of the city.
City commission-All legislative, executive, and administrative power of the city is vested in the city commission

12. COMMISSION PLAN
In its legislative/executive configuration, the commission:
shall enforce the commission plan, ordinances, orders, and applicable status
shall maintain liaison with other units of local government respecting interlocal contracting and joint activities
shall supervise all departments of the city and the conduct of the officers and employees
shall prepare a report on the condition of the city not less than annually
shall classify the various administrative and service functions of the city under departments and prescribe functions and duties
shall establish all appointive offices
shall promulgate codes, rules, and regulations necessary for the public health, safety, and welfare of the residents of the city

13. COMMISSION PLAN
shall provide for sufficient revenue to operate the city and appropriate such funds in an annual budget
shall promulgate procedures to insure the orderly administration of city government
may declare the office of mayor to be vacant if his disability continues for 60 consecutive days and appoint a new mayor
shall, at its first meeting, delegate which commission member shall have supervision over each city department or may delegate responsibility for overall supervision to a City Administrative Officer (KRS 83A.140)

14. COMMISSION PLAN
In a model commission plan the commissioners act in their individual capacities as heads of the various city departments. KRS 83A.140 merely states that the commission shall create the city departments and delegate a commission member to have “supervision” over each department. The commissioners may delegate their responsibility for supervision of the city departments to a CAO established pursuant to KRS 83A.090

15. BUDGETING Why do budgets matter? Budgeting concepts
Statutory requirements
Estimating revenues
Estimating expenditures
Capital outlay/debt service
Pulling it all together

16. What is a budget? Financial Plan * Budget Year * Expected Revenues
* Expected Expenditures
Policy/Priority Document
* Services
* Beneficiaries
* Impact
* Programs
Process- “Building a Budget”
Communications
Financial Controls

17. City Budgetary Process

18. City Budgetary Process

20. Estimating expenditures
Salaries and wages
Related benefits
Recurring operating costs

23. Revenue forecasting Accrual basis required Taxes Grants
Charges for services
Other revenues

25. Enactment of the budget
Budget summary
Public notices
LGEA
MAP
Budget ordinance
Mayors budget message

32. Questions?