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o� <br />j,EAGU E of <br />MINNESOTA <br />CITIES <br />HANDBOOK FOR MINNESOTA CITIES <br />Chapter 21 <br />Municipal Budgeting <br />Learn the characteristics of city budgets as a workplan and communication tool. Understand the <br />budget cycle and structures, sources of city revenue, typical expenditure categories, and planning for <br />multiple year expenditures, like infrastructure, with a separate capital budget. Become aware of how <br />GASB and Truth in Taxation impact budgeting. <br />RELEVANT LINKS: I. Public versus private budgeting <br />Minn. stat. § a: 2.22 t. Cities are under great pressure to streamline operations and meet strict <br />financial standards at the same time. Sustainability is an overarching <br />concern for cities. Simply adopting last year's budget is not acting in the <br />city's best interest. <br />Done thoroughly, city budgets reflect city plans, policies and goals regarding <br />services and sound resource management. Consider city goals, what <br />programs and services citizens want in the city and then look to sustaining or <br />allocating funding for those goals, using the budget document as an <br />important communication tool revealing a city's plan for the coming year <br />A city is a municipal corporation but budgeting in the public sector is <br />different than it is in the private sector. The table below illustrates some of <br />the major differences in terms of scope, law, and process. <br />CITIES <br />PRIVATE OR NON- <br />GOVERNMENTAL <br />This material is provided as general information and is not a substitute for legal advice. Consult your attorney fc- advice concerning specific situations. <br />145 University Ave. West www.;mc.org 10/15/2015 <br />Saint Paul, MN 55103-2044 (651) 281-1200 or (BOG) 925-1122 0 2015 All Rights Reserved <br />URGANIZA"PIONS (NUOS) E <br />Provide services and programs for the <br />i <br />Provide services to a discreet set of <br />I entire community. <br />customers. <br />Budgets focus on public safety and <br />Private companies allocate money to meet <br />well-being of the community as a <br />shareholders or owners expectations for <br />whole. <br />profit. <br />Must fund a wide variety of activities <br />Focus spending on narrowly defined <br />from safe roads and clean water to <br />programs or services. <br />economic development. <br />Subject to a significant number of state <br />Not subject to such extensive and <br />and federal mandates or laws that <br />numerous legally binding mandates that <br />legally require cities to provide certain <br />' require both provision and levels of <br />services but do not provide funding for <br />service. <br />them. <br />This material is provided as general information and is not a substitute for legal advice. Consult your attorney fc- advice concerning specific situations. <br />145 University Ave. West www.;mc.org 10/15/2015 <br />Saint Paul, MN 55103-2044 (651) 281-1200 or (BOG) 925-1122 0 2015 All Rights Reserved <br />