Operating Budget 2025-2026

BUDGET PROCESS ( continued )

The CIP process begins in September with project proposals submitted by departments for consideration. In October, the Town Manager evaluates each project based on its individual merit as it relates to factors such as Town Council priority, impact on service delivery, and available funding. Based on preliminary revenue projections for the next fiscal year, together with a projection of operating expenditures and a forecast of debt capacity, the Town Manager utilizes available funding to best meet the capital improvement needs of the Town. The result of the Town Manager’s analysis and discussions with departments is the Recommended Capital Improvement Program. The Recommended CIP is presented to the Town Council and Planning Commission for review in November. Work sessions are held in early December with both the Planning Commission and the Town Council to review the document and to provide an opportunity to discuss the various recommendations. The Planning Commission reviews the CIP for compatibility with the Comprehensive Plan and forwards its comments to the Town Council in January. The Town Council holds a public hearing on the CIP at its first meeting in January and takes action on the CIP at its second meeting in January. Following Town Council action, the first year of the CIP becomes the basis for capital improvement funding consideration in the Town's budget. While the Town Council is considering the five-year Capital Improvement Program, the Town Manager distributes operating budget request packages to Town departments in December. Included in these packages are the parameters that departments should consider in constructing their budget requests. The budget request package also includes personnel and operating projections and historical operating expenditure information together with forms for outlining requested funding for operating expenditures and capital outlays. Departments are also instructed to provide accomplishments for the current fiscal year and objectives for the upcoming fiscal year. An organizational chart for each Department is also requested. Budget requests are due to the Town Manager at the end of January. In January, the Director of Financial Services and Budget Analyst formulate revised revenue projections based on historical trends, year-to-date revenue collections and economic forecasts. With both revenue projections and expenditure requests in hand, the Town Manager, after discussing budget requests with Department Heads, formulates the Recommended Budget. The Recommended Budget is forwarded to the Town Council in early March. The Town Manager presents the budget to Council at its first meeting in March. Following transmittal of the budget to the Town Council, several Council work sessions are held to review and discuss the Town Manager's Recommended Budget . Work sessions provide an opportunity for the Town Council and Town Manager to discuss the Town's fiscal policies, potential tax rate or user fee adjustments, and any new initiatives proposed by the Town Manager. As required by state law, a budget summary and notice of public hearing is advertised in the newspaper. A public hearing on the budget is scheduled for early April. The Town Council considers comments made at the public hearing at a work session in mid-April and sets the tax rate. The budget is adopted by Town Council in late April each year.

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