1. City of Rio Vista Budget 101 An Overview of Essential Tools CITIZENS OF RIO VISTA CITY STAFF CITY COUNCIL

2. Role of the Budget ESSENTIAL ELEMENTS SET PUBLIC POLICY LEGISLATIVE CONTROL SERVES AS A FINANCIAL TOOL

3. Purpose of Budget Process AccountabilityAccountability PlanningPlanning ImplementationImplementation EvaluationEvaluation InformationInformation

4. Fiscal Accountability 1.Adopted budget is the legitimate basis for management to spend public funds to meet the City’s operational objectives, using all resources available and measuring whether the City can continue to meet those objectives in the foreseeable future. 2.In California, the Gann Limit calculation limits the tax revenues a municipality can appropriate. See Appendix A. City’s responsibility that budget is in compliance with public decisions concerning raising and spending of public moneys

5. Operational Accountability 1.Budget Integration with Financial Reporting 2.Governmental Accounting Requirements City’s responsibility to report the extent to which it has met operating objectives efficiently and effectively, using the resources available for that purpose, and whether it can continue to meet its objectives for the foreseeable future.

6. Planning The budget process is used for planning, coordinating and scheduling programs to serve citizens and community 1.Goals & Objectives 2.Preparation 3.Adoption

7. Planning Goals & Objectives 1.City-wide 2.Department

8. Planning Budget Preparation 1.Distribute Calendar 2.Develop methods, assumptions, support 3.Project department operating expenditures 4.Estimate revenues 5.Project personnel costs 6.Develop cost allocation plan 7.Determine capital project need 8.Prepare Preliminary Budget 9.Prepare Final Budget

9. Adoption required by June 30 1.Budget Workshops 2.Public Hearings 3.Council Approval

10. Implementation Adoption of the budget by the City Council authorizes City management to utilize the appropriated amounts for the purposes designated during the preparation process – this is the operational phase of fiscal period 1.Legislative authority to implement the budget during the fiscal year – operational phase 2.Budget policies are incorporated

11. Evaluation 1.Management periodically monitors spending levels budgeted versus actual expenditures 2.City Council reviews operational results at mid year budget review and authorizes amendments where deemed necessary 3.Financial reports for fiscal period ended are prepared and compared with budget In order for management to control operations within the approved budget levels, a monitoring system needs to be in place

12. Information A useful, public document of relative importance to City Council, management, citizens and other interested parties 1.Public requests for information 2.Management spending guide 3.Provides basis for final year end comparisons