City Council Agenda and Packet 2015 09 21 BUDGET

Home Browse Search

5.2 Level of Budgetary Control. The level of budgetary control is the level at which spending cannot exceed the budgeted amount without City Council authorization. The level of control is also the level of detail the City Council approves in the appropriation resolution. The City's current level of budgetary control is at the fund level. However, department management is responsible for administering their respective programs within the financial constraints described by the budget as adopted. Article 11, Section 11 -6 of the City of Louisville Charter states, "During the fiscal year, no officer or employee shall expend or contract to expend any money, or incur any liability, or enter into any contract which, by its terms, involves the expenditure of money in excess of the amounts appropriated by the City Council. Any contract, verbal or written, made in violation of this subsection shall be void, and no moneys of the City shall be paid on such contract; except that the City Council may ratify such a contract if it determines that ratification would be in the best interest of the City, and if it adopts a resolution making the necessary appropriation." 5.3 Balanced Budget. The City's definition of a balance budget requires each fund's revenue plus appropriated fund balance /working capital to be equal to, or greater than, each fund's total appropriations. However, it is the City's intent to go further and develop structurally balanced budgets for the General Fund and the other major operating funds (excluding capital project funds). In a structurally balanced budget, annual recurring revenue will be projected to equal or exceed annual recurring expenditures for each fund. If a structural imbalance (recurring expenditures exceeding recurring revenue) should occur in the General Fund or in any of the major operating funds, a plan will be developed and implemented to bring the budget back into structural balance. 5.4 Budget Form. Article 11, Section 11 -2 of the City of Louisville Charter states, "The proposed budget shall provide a complete financial plan for the City in a format acceptable to the City Council. Except as otherwise provided by this Charter, the proposed budget shall be prepared in accordance with State statutes establishing the local government budget law and the local government uniform accounting law." 5.5 Capital Improvement Plan (C -I -P). A Five -Year Capital Improvement Plan will be presented to the City Council for consideration during the budget development process. The annual capital budget will be based on the first year of the approved C -I -P. 5.6 Long -Term Financial Plan (LTFP). Five -year financial forecasts for each of the City's major operating funds will be presented to the City Council for consideration during budget development. The LTFP will coordinate the C -I -P with the operating budget and will provide insight into potential future financial imbalances so that action can be taken before a crisis occurs. 5.7 Budget Amendment. The City Council may amend or supplement the budget by resolution at any time after its initial adoption. A public hearing is required. 5.8 Budget Control System. The City will develop and maintain a budgetary control system to help it adhere to the budget. All departments are part of the budget control system and will have access to individual department reports that compare budget -to- actual financial performance. The Finance Department will report City -wide budget -to- actual performance on a monthly basis for both revenue and expenditures to the City Finance Committee. 29