Municipal Budgeting in City of Harrisburg
Annual municipal budgeting process in the City of Harrisburg, prepared according to guidelines for budget and appropriations. Timeline for budget requests, preparation, adoption, and limitations on budget authority and cash.
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$ MUNICIPAL BUDGETING $ 1 CITY OF HARRISBURG 3/15/2025 Prepared by Mary McClung
BUDGET AND APPROPRIATIONS 2 ANNUAL APPROPRIATION ORDINANCE SDCL 9-21-2 requires that a budget for all funds, except for trust and agency funds, be prepared. The budget is the master financial plan of the municipality, showing the proposed cost for each function of activity and the proposed means of financing them. The budget must be prepared at the functional level as prescribed by the Municipal Accounting Manual. (Fund = General, Dept = Streets, Object = Salary). 3/15/2025 Prepared by Mary McClung
BUDGET AND APPROPRIATIONS 3 The budget should cover all proposed expenditures and anticipated receipts and revenues. Expenditure estimates should be in sufficient detail to show the need for the appropriations requested and cover all items. Revenue estimates should consider for possible failure to realize the full amount anticipated, to avoid the possibility of revenue deficits during the fiscal year. The annual budgetary process involves three steps: preparation, adoption and execution. 3/15/2025 Prepared by Mary McClung
Timeline 4 June Finance officer requests departments and subsidized groups to submit their budget requests by either the last week of June or first week of July. Contact Lincoln County Auditor to request property tax amount including CPI and growth for upcoming budget year. The CPI to be used for taxes payable in 2019 in 2.1% July and August Prepare estimate of costs and pull together data from the department requests and Capital Improvement Plan to begin preparing a proposed budget ordinance. Meet with department heads and groups to discuss budget requests. Meet with Mayor and City Administrator to balance the budget. No later than the first regular board meeting in September Introduce annual appropriation ordinance and hold the first reading of the appropriations ordinance (SDCL 9-21-2) 3/15/2025 Prepared by Mary McClung
Timeline 5 At least five days after first reading of the appropriation ordinance Second reading and adoption of the annual appropriation ordinance. Publication is also required at this time. Ordinances shall be read twice with at least five days intervening between the first and second reading. The ordinance shall be signed by the mayor or acting mayor or president, filed with the auditor, and published once; twenty days after the completed publication of such notice, unless the referendum shall have been invoked, such ordinance shall become effective. Prior to October 1 First adoption must have been made. Levies in dollars must be certified to the county auditor (SDCL 10-12-7) 3/15/2025 Prepared by Mary McClung
Limitations 6 If you have a million dollars of budget authority and no cash, can we purchase anything? NO! If you have a million dollars of cash and no budget, we still cannot purchase anything. 3/15/2025 Prepared by Mary McClung
Limitations 7 Property Tax Limitation The heading says property tax limitation and not Budgetary limitation. The amount that a municipality can raise their levy from one year to the next is as follows: (SDCL 10-13-35) Last year s levy Plus 3% or Consumer Price Index (whichever is lower) Plus Taxes raised on new construction Equals The new levy request in DOLLARS If a municipality LOWERS or holds it tax request EVEN in any given year to give the taxpayers a break, then that city will be capped at a lower level for infinity. 3/15/2025 Prepared by Mary McClung
BUDGET PREPARATION 8 The preparation phase of the budgetary process is a responsibility of the finance officer. Budgets for all funds should contain essentially the same detail, actual revenue and expenditures for the prior year, current year budget, revenue and expenditures to date for the current year and budget for the next fiscal year. FUND 101 GENERAL FUND Account 2017 Amt 2018 Budget E 101-41110-41100 SALARIES AND WAGES $17,241.68 $18,280.00 E 101-41110-41200 OASI $1,319.09 $1,399.00 E 101-41110-42100 INSURANCE $352.92 $400.00 E 101-41110-42300 PUBLISHING $0.00 $0.00 E 101-41110-42500 REPAIRS AND $0.00 $0.00 E 101-41110-42600 SUPPLIES AND MAT $338.33 $50.00 E 101-41110-42700 TRAVEL AND $365.90 $1,400.00 2018 YTD $4,800.00 $367.20 $0.00 $0.00 $0.00 $49,.30 $1,400.00 2019 Budget _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ _________________________ 3/15/2025 Prepared by Mary McClung
APPROPRIATION ORDINANCE (ADOPTION) 9 The introduction and first reading of the annual appropriation ordinance shall be made no later than the first board meeting in September (SDCL 9-21-2). At least five days after first reading of appropriation ordinance Second reading of annual appropriation ordinance, adoption of budget and publication of adopted budget (SDCL 9-19-7). Ordinances shall be read twice with at least five days intervening between the first and second reading. The ordinance shall be signed by the mayor or acting mayor or president, filed with the auditor, and published once; twenty days after the completed publication of such notice, unless the referendum shall have been invoked, such ordinance shall become effective. Must be approved and published prior to October 1. When approved by the governing body, the expenditures incorporated in the budget become legally binding appropriations and the actual expenditures of the government s operating agencies must be made in strict conformity. See copy of Appropriations Ordinance on the next slide - 3/15/2025 Prepared by Mary McClung
APPROPRIATION ORDINANCE (ADOPTION) 10 470 Debt Service CITY OF HARRISBURG, SOUTH DAKOTA ORDINANCE 2017-05 2018 APPROPRIATIONS ORDINANCE WATER FUND SEWER FUND PROPRIETARY FUNDS 441 Principal 442 Interest 61,042 36,329 97,371 Total Debt Service Beginning Unrestricted Cash 2,135,056 2,584,700 Total 2017 Appropriations 2,773,373 40,200 279,871 Be it ordained by the City of Harrisburg that the following sums are appropriated to meet the obligations of the municipality. Estimated Revenue Capital Outlay Accumulations Permits Interest Rentals Revenue from Sales Surcharge #2 Surcharge #3 Surcharge #4 Hook-Up Fees Turn on Fees Proceeds of General Long Term Total Estimated Revenue 400 3,500 36,000 649,693 120,776 163,910 4,000 Total Appropriations and Accumulations 2,773,373 40,200 279,871 1,314,619 Liquor Lodging Dining Special Sales Tax Fund Storm Drainage Special Revenue Fund 184,886 132,952 45,000 General Fund Liquor Lodging Dining Special Sales Tax Fund Drainage Special Revenue Fund 410 General Government 45,000 1,600 1,250,000 2,270,879 411.1 Legislative 411.3 Ordinances, Resolutions 411.5 Contingency 412.1 Executive 412.2 Administration 412.3 Planning Commission 412.4 Park Board 413.0 Elections 414.1 Attorney 414.2 Financial Administration 419.2 Govt. Buildings 419.5 Planner 419.6 Engineering Total General Government 25,072 3,800 30,000 7,941 140,672 7,596 3,392 1,450 50,000 185,152 283,000 110,858 142,300 991,233 General Fund Governmental Funds Unassigned Fund Balance 4,565,000 6,246,457 90,000 310 Taxes 311 General Property Taxes 313 General Sales Taxes 315 Amusement Taxes 319 Penalties and Interest TOTAL AVAILABLE 4,405,935 8,831,157 1,080,413 950,000 40,000 Less Appropriations (Expenses) Personal Services Other Current Expense Payment for water/sewer Interest Depreciation 150 1,500 290,546 2,147,846 180,000 73,753 204,979 1,465,469 5,034,975 750,000 89,442 391,861 150 150 Total Taxes 2,032,063 40,000 Licenses & Permits 320 Building Permits 321 Lottery License 321.01 Daycare License 322 Animal License 323 Garbage License 324 Liquor License 326 Variance Permits 328 Peddlers/Solicitors Permits 328.03 Garden Plot Permits 329 Fireworks Sales Permit Total Licenses and Permits 320 70,000 1,500 250 500 1,400 7,500 87,500 87,500 TOTAL APPROPRIATIONS (EXPENSES) 2,897,124 7,731,747 420 Public Safety ESTIMATED SURPLUS 1,508,811 1,099,410 420.0 Public Safety 421.0 Police 422.0 Fire 423.2 Building Inspector 423.5 Mechanical Inspector 800 275,813 63,743 24,325 14,670 379,351 0 Less Depreciation Reserve (SDCL 9-21-12) Estimated Surplus Retained 250 1,050 200 82,650 1,508,811 1,099,410 ESTIMATE SURPLUS TO BE TRANSFERRED TO GOVERNMENTAL FUNDS Total Public Safety 430 Public Works Intergovernmental Revenue 334 State Grants 334.02 Surface Transportation Program 335 State Shared Reveue Total Intergovernmental Revenue 330 Part III 431.0 Highways and Streets 431.5 Storm Drainage 431.6 Street Lighting 431.7 Snow Removal 432.2 Street Cleaning 432.4 Solid Waste Disposal 432.6 Weed Control 709,663 9,000 115,000 41,000 14,600 6,017 13,990 909,270 0 95,000 184,000 56,750 240,750 The following is a summary of those funds for which spending authority has been approved by the electorate: Amount Authorized Expended to Date Unexpended Authorization Fund Charges for Goods & Services 341.01 Zoning and Subdivision Fees 341.03 Building Permit Adm Fee 341.06 Building Plan Review 341.9 Credit Card Finance Fees 346.99 Administration Park Fee Total Charges for Goods & Services 340 3,000 5,500 5,000 150 15,000 28,650 Total Public Works 440 Health and Welfare 95,000 Part IV The finance officer is directed to certify the following dollar amounts to tax levies made in this ordinance to the County Auditor. 441.1 Code Enforcement 441.2 Animal Control 441.3 West Nile Prevention 30,788 2,500 16,549 49,837 Total Health and Welfare 1,080,413 Miscellaneous Revenue 361 Interest Earned 362 Rentals 364.1 Annual Assessments 364.4 Annual Assessments 367 Contributions and Donations 369.01 Cable TV Franchise Total Miscellaneous Revenue 360 General Fund: 3,000 5,000 243,760 200 100 420 Culture and Recreation JULIE BURKE - VAN LUVANEE Mayor 451 Recreation 452 Parks 452.4 Forestry 452.6 Park Lighting 455 Libraries 0 273,033 20,000 4,200 83,981 381,214 327,110 5,000 42,500 299,260 MARY MCCLUNG Attest: Finance Officer 200 327,210 Total Culture and Recreation 1st Reading: August 17, 2009 Operating Transfers 390 Other Sources of Revenue 391.2 Proceeds of Gen Long Term Liab Total Operating Transfers 390 460 Conservation and Development 465 Economic Development 0 0 0 August 21, 2017 40,200 0 0 2nd Reading: September 21, 2009 Published: 465.3 Economic Development Promoting Total Conservation and Development 62,468 62,468 September 5, 2017 September 14, 2017 40,200 Total Means of Finance 2,773,373 40,200 327,360 3/15/2025 Prepared by Mary McClung
BUDGET EXECUTION 11 After the budget has been prepared and adopted and as the new fiscal year begins, the execution phase of the budgetary process begins. The appropriations included in the annual budget constitutes maximum authorizations to spend during the fiscal year (SDCL 9-21-9) and cannot be exceeded except by amendment of the budget (ordinance) by the governing body pursuant to SDCL 9-21-7. SUPPLEMENTS The budget may be increased at any time during the year by adopting a supplemental budget ordinance SDCL 9-21-7. A supplemental budget ordinance is adopted in the same manner as the original budget ordinance with 1st and 2nd readings and publication. CASH APPLIED The revenue side of the budget is made up of two elements the new revenue to the municipality and the cash left over from the previous year referred to as cash applied 3/15/2025 Prepared by Mary McClung
Supplemental Appropriations 12 3/15/2025 Prepared by Mary McClung
Budget Conclusion 13 The budget is an estimate of revenue and expenditures for the city. My philosophy when preparing a budget has been to estimate revenue less than what is anticipated and estimate expenditures more, which will assist us with building adequate reserves for emergencies and larger projects. The City has been able to adopt a balanced budget each year and stay within it s means of finance. 3/15/2025 Prepared by Mary McClung
Budget Conclusion 14 ? s 3/15/2025 Prepared by Mary McClung
