City Finance 101: Financial training for elected and appointed officials

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A comprehensive training program designed to equip elected and appointed officials with the necessary knowledge and tools for effective financial management in their communities. Learn about fund accounting, budgeting, fund categories, revenues, expenditures, transfers, and best practices in city finance.

Uploaded on Dec 09, 2023 | 8 Views

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  1. City Finance 101: Financial training for elected and appointed officials Cindy Kendall, MPA CKendallConsulting, LLC 641-485-2143

  2. Agenda: This Training is intended: For elected officials interested in their responsibilities in financial management To provide tools to understand the financial condition of your community To understand the laws for reporting financial activity and to safeguard the community s assets To make the budgeting process understandable and valuable to achieve community goals 12/9/2023 2

  3. Governments Use Fund Accounting General Fund Permanent Funds Debt Service Funds Special Revenue Funds Capital Projects Funds TIF Special Rev Funds Proprietary Funds 12/9/2023 3

  4. Budgeting Revenues should not exceed expenditures Either revenues need to increase (utility rates should be increased) or decrease expenses xx 4

  5. FundCategories General Chief operating fund of city Police Fire Library Parks, Recreation/Pool Cemetery City Hall/Administration Airport/Garbage (if not proprietary) 12/9/2023 5

  6. Fund Categories cont. Special Revenues Funds from specific source Used for specific purpose Road Use Tax Employee Benefits/IPERS or MFPRSI (in 49 cities) Emergency Levy Local Option Sales Tax (in some cases) Tax Increment Financing 12/9/2023 6

  7. Fund Categories cont. Debt Service Fund Principal and interest for G. O. long-term debt (one plus years) Capital Projects Fund Resources and expenditures relating to capital projects Permanent Fund Money held in trust with restrictions to spending only the annual interest 12/9/2023 7

  8. Fund Categories cont. Proprietary/Enterprise Fund Self-supported operations; utilities Water Sewer Gas/Electric Garbage 12/9/2023 8

  9. Programs/Functions Each fund category is broken into Revenues, Expenditures, and Transfers These are further broken into smaller pieces 12/9/2023 9

  10. Revenues Property Taxes Tax Increment Financing Other City Taxes Licenses & Permits Use of Money / Property Intergovernmental Charges for Fees & Services Special Assessments Miscellaneous Other Financing Sources 12/9/2023 10

  11. Expenditures Public Safety Public Works Health & Social Services Culture & Recreation Community & Economic Development General Government Debt Service Capital Projects Business Type Enterprise/Proprietary RULE: Never spend more than the amount in any program before AMENDING. 12/9/2023 11

  12. Transfers In and Out Transfers and Transfers out have their own line RULE: Transfers in must equal transfers out RULE: Transfers are between funds 12/9/2023 12

  13. How do we know how the city is doing financially? Make sure you get and LOOK at reports ask questions Monthly Reports Annual Financial Report Adopted Budget 12/9/2023 13

  14. Effective Budgeting Who is responsible for the budget? Mayor and Council Clerk or Finance Officer Department Heads The purpose of budgeting Set Appropriations Efficient use of limited resources Forecast operating expenses Forecast revenues Plan for capital Improvements Maintain healthy reserves 14

  15. Debt Service-Long Term Debt Budget for Long Term Debt Revenue Bonds GO Bonds TIF 12/9/2023 15

  16. Financial Annual Reports Requiring Council Action or Publication I-DOT State Financial Report Council approval needed Annual Financial Report - Publication Annual Urban Renewal Report Council Approval needed 12/9/2023 16

  17. BEST PRACTICES IN CITY FINANCE Get involved Does city have finance committee/internal control involvement? Have policies in writing Cash balances and reserves Investments (required by Iowa Code Section 12) Purchasing including credit card authorization and use Capital Expenditures/ Capital Improvement Plan (aka CIP) 12/9/2023 17

  18. Other Resources Available Auditor of State Department of Management Iowa League of Cities State Treasurer s Office government 12/9/2023 18