1997 BUDGET - Laserfiche WebLink

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Budget Process Basis of Budgeting The City's budget is constructed on a calendar year basis as required by 29-1- 101, et seq., C.R.S. The budget must present a complete financial plan for the city, setting forth all estimated expenditures, revenues, and other financing sources for the ensuing budget year, together with the corresponding figures for the previous fiscal year. In estimating the anticipated revenues, consideration must be given to any unexpected surpluses and the historical percentage of tax collections. Further, the budget must show a balanced relationship between the total proposed expenditures and the total anticipated revenues with the inclusion of beginning funds. Basis of Accounting In its budget, the City of Louisville uses a "cash basis" of accounting. The basis of accounting dictates when revenues and expenses are recorded. In the cash basis of accounting, revenues are recognized when they are collected, and expenses are recorded when payment is actually made. The cash basis of accounting differs from the accrual basis, in which revenues are recorded when they become receivable, generally before the money is actually received. Expenses under the accrual basis of accounting are recorded when the liability is incurred, rather than when payment is actually made. In its accounting system, the City uses either a cash basis or modified accrual basis, depending on the type of fund. The details of which basis is used for which accounts are explained in the City's Comprehensive Annual Financial Report. Budget Amendment Policy The City of Louisville uses a "cash basis" of budgeting. City expenditures may not exceed the amounts appropriated, except in the case of an emergency or a contingency which was not reasonably foreseeable. Under such circumstances, the City Council may authorize the expenditure of funds in excess of the budget by a resolution adopted by a two- thirds vote of the city council following proper notice. If the city receives revenues which were unanticipated at the time of adoption of the budget, the City Council may authorize the expenditure thereof by adopting a supplemental budget and appropriation resolution after proper notice and a hearing thereon. The transfer of budgeted and appropriated monies within a fund or between funds may be done only in accordance with state law. Budget Adoption Resolutions The City Council actually implements the City's budget by approving a series of resolutions. Resolutions establish appropriations, fees, tax levies, and other mechanics necessary to execute a program for raising revenue and the paying for services the city government provides. Each resolution adopted to implement the 1997 Operating Budget is summarized below. Resolution 96 - 71 A resolution adopting the City of Louisville's budget for fiscal year 1997. Resolution 96 - 72 Appropriates the total budget by fund, setting the spending limits for each fund for 1997 according to the proposed spending program the City Council adopted in Resolution 96-72. Resolution 96 - 73 Establishes the city's property tax mill levy for collection year 1997 (tax year 1996). This type of resolution is adopted every year as part of the budget process. Property tax rates do not carry over automatically from one year to the next. The levy for 1997 is 5.246 mills. 18