Each year a city must forecast the revenues it will receive and the expenditures it will incur in the upcoming year. The resulting formalized document is known as the Municipal Budget.
Every city is required by law to balance its budget each year. The budget is constantly monitored throughout the year to determine whether the city is spending more or less than its revenues. The city then makes adjustments to its spending in order to ensure that at the end of the year the budget is in balance.
What Does the City Budget Do?
Each year the City Commission and City staff work together to develop an Annual Budget. While the Budget is being created, all parties must make decisions on how to utilize the limited revenues that the City receives in order to produce the greatest benefits for the citizens.
The Budget serves as an outline for how the monies that come into the City should be spent to maintain and improve the City.
The Budget is not just an accounting document, it is a management and planning tool. Because the City is limited by the amount of resources available, the Budget aids officials in determining which objectives have the highest priority and will produce the greatest positive impact in the community.