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HomeMy WebLinkAboutTR-45-85 U1. 3 (a ) CORPORATION OF THE TOWN OF NEWCASTLE TREASURY DEPARTMENT K. CAMPBELL, G.A., TREASURER 40 TEMPERANCE STREET TEL.(416) 623-3379 BOWMANVILLE, ONTARIO L1C 3A6 REPORT TO THE GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MEETING OF JULY 2ND 1985 REPORT NO. : TR-45-85 SUBJECT: PROPOSED 1986 BUDGET SCHEDULE RECOMMENDATION: It is respectfully recommended the General Purpose and Administration Committee recommend to Council 1 . That this report be received for information. 2. That the budget process followed in prior years by Committee and Council be continued for the 1986 budget year. BACKGROUND AND COMMENT: Staff have reviewed the budget process and feel that, at present, the timing of the approval of the Town's budget is not too far astray from that which would be desirable . The process of having informal discussions of the budget proposals by Council and Staff prior to the formal Committee presentation appears to best serve the needs of the municipality. Therefore, staff would recommend the continuation of the existing system . i U i 3(CL 2 - TR-45-85 BACKGROUND AND COMMENT: (continued) The budget process and the year end process are unavoidably linked. Reasonably accurate year end surplus or deficit positions are required to do the mill rate calculations . Since it takes the department until the end of the third week in January to close off the accounts payable each year and then set up any related accounts receivable ie: Ministry of Transportation and Communications subsidy, it is virtually impossible to get anything other than a ball park estimate on the surplus or deficit for the end of the calendar l year. However with the co-operation of Council , staff are of the opinion that there is no reason that the budget approval cannot be finalized in early February of each year. There are, however, some matters related to the budget which must be given due consideration by Council . Those matters are set out below: (a) The year end surplus or deficit will be a reasonable estimate, but will not reflect the exact f year end position as that will not be known until mid to late February. (b) The actual prior year's results reflected in the budget document on an account by account basis will not be the final year end results. Those figures are not available until mid to late February. Council can be supplied with up-to-date computer printouts to supplement those figures shown in the budget document (end of November) . The final revised actuals would not be incorporated into the budget document until the final printing . 3 - TR-45-85 BACKGROUND AND COMMENT: (continued) (b) (continued) With regard to 'actual ' figures reflected in the budget document, staff feel that Council should not rely too heavily, on the year to year comparisons of the prior year actuals to the current year budget. Municipal operations are such that budget to actual comparison for a given year is useful but year to year comparisons may not be as useful . The reason for this statement is that municipalities pursue different objectives year to year and this may be reflected in the actual results of a given year and bear little relationship to the upcoming budget year. Fluctuations in capital spending have a major impact on the budget and therefore make year to year comparisons less useful . Council 's interest should focus on the budget presented and its mill rate impact. This is a matter separate from the detailed actual results of the prior year . (c) In some years, the actual Ministry of Transportation and Communications allocation and Unconditional Grant allocations may not be known to the exact dollar at the time of the passing of the budget. We should however have reasonable estimates for those grants. U I 3 CaJj - 4 - TR-45-85 BACKGROUND AND COMMENT: (continued) (d) There would be only one printing of the draft budget document. All changes made at the informal discussions would be noted and incorporated into the final printing of the budget document. Council would be supplied with revised summarized budget documents as the discussions progress to a point where such information is useful . Budget notes of all motions and changes to the draft budget wi I I be kept. 1 (e) The mill rate calculations based on preliminary budget figures would normally be available by mid to late January. This is possible because, usually, we have our finalized assessment roll by that time. The main thrust of the budget discussions in any year should be based on the current year's and future years' capital works and where the funding for such projects wi I I be found . With regard to the current year's operating budget the discussion would most profitably center on desired changes in the level of service provided in any program, either increase or decrease. If the existing level of service is to be maintained with no staffing level changes, then these areas bear only a cursory review by Council in its budget discussions. For any changes in levels of service or levels of staffing anticipated in the preliminary budget, it is staff's responsibility to highlight those matters for Council . In addition, both staff and Council must be vigilent in their review of the budget to ensure that all cost saving measures which are possible are taken for the benefit of the Town . 5 - TR-45-85 BACKGROUND AND COMMENT: (continued) The schedules which are proposed for the 1986 budget process, both capital and current, are appended to this report as Schedule "A" and Schedule "B" for your review. Respectfully submitted, Kathy n A. Campbell , C.A., B.Comm. i Treasurer *gf Attachments i SCHEDULE "A" BUDGET SCHEDULE PROPOSAL 1986 CURRENT BUDGET ----------------------------------------------------------- JULY - AUGUST Preparation by treasury staff of blank worksheets for current year's budget. Transfer of budget on the pages and set up of 1986 format on word processor. Printing of blanks for departmental working copies of the current budget including summary pages and back up sheets. SEPTEMBER Preparation and submission of budget guidelines by staff to Committee. Preparation of salary and benefits budget by the Treasury Department based on best estimates of costs for 1986. OCTOBER Preparation of 1986 Current Budget papers by the departments. NOVEMBER Review of department budgets by staff and preparation of submission to Committee for consideration . DECEMBER/JANUARY Current Budget being bound, indexed and pages numbered submitted to Committee for consideration at the informal budget meetings. Insert actuals to end of November in budget document by treasury staff. Percentage increases ( decreases) by major expenditure classification will be included in the document. LATE JANUARY Current Budget submitted to General Purpose and Administration Committee for consideration and approval . FEBRUARY Finalized Current Budget presented to Council for approval . i SCHEDULE "B" BUDGET SHEDULE PROPOSAL 1986 FIVE YEAR CAPITAL FORECAST ----------------------------------------------------------- AUGUST Preparation by treasury staff of blank worksheets SEPTEMBER Preparation by departments of 5 Year Forecasts. 1986 should include detailed back up sheets where necessary. 1987 - 90 should be summarized expenditure by major operation within each department. The current 5 Year Capital Forecast should form the basis of this document. OCTOBER Review of the 5 Year Forecast by staff and preparation of submission to Committee. NOVEMBER 5 Year Forecast being bound, indexed and pages numbered will be submitted to Committee for consideration. JANUARY Capital Budget for 1986 to be given detailed consideration in current budget discussions in light of guidelines, grant allocations and other funding available from general funds, reserves, and reserve funds. LATE JANUARY 5 Year Capital Budget presented to General Purpose and Administration Committee for consideration and approval . FEBRUARY Finalized 5 Year Capital Budget presented to Council for approval .