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RELEVANT LINKS: <br />Note: Cities organized under Plan B form of government, and cities with <br />home rule charters, special laws, local ordinances or unique circumstances <br />may have additional or special budgeting requirements and considerations. <br />A city budget is a comprehensive financial plan for one year. It is a snapshot <br />i <br />in time of city activities and services supported by discreet city funds for the <br />icoming <br />year. <br />In governmental accounting terms, a "fund" is a sum of money set aside for <br />a specific purpose—not necessarily a separate bank account—but tracked on <br />paper separately. The three basic city fund types are: <br />Minn. Stat. § 471.696. <br />• Governmental funds—used to finance most governmental services and <br />Handbook, Cimpter 26. <br />based on tax revenues, special assessments, or issuing debt. The city's <br />general fund, debt service funds (to pay off bonds), and capital project <br />funds are examples of governmental funds. <br />• Proprietary funds—financing for governmental activities operating like a <br />private business, for example, water and sewer utilities, electrical <br />utilities, or municipal liquor stores. Service charges usually provide most <br />of these funds. <br />• Fiduciary funds—trust and agency funds used to account for assets a city <br />holds in a trustee capacity or as an agent, for example, pension funds. <br />Fiduciary funds cannot be used to support the city's own programs. <br />See sections v1 and vu, <br />The Office of the State Auditor (OSA) provides the Uniform Chart of <br />Revenues and Expenditures. <br />Accounts to facilitate the preparation of uniform annual financial statements. <br />Ac , i <br />The outline of accounts may also serve as a useful checklist when preparing <br />Office of he St to Auditor. <br />O&:ce of the State Auditor. <br />city budgets. Every city should consult this chart when preparing the annual <br />budget and maintaining financial records. The OSA recommends the <br />adoption of the uniform account numbering system for all cities, including <br />cities under 2,500 in population, whenever practical. <br />Govemment Finance Officers <br />Preparing city budgets involves policy decisions about the use of money, <br />Association (GFOA): See p. <br />B for as <br />and it helps cities make important decisions, tying funding to specific goals <br />Minnesota recipients of 'lie <br />set by the council. During the budgeting process, city council members and <br />DistingUisi:ec.Budget Award <br />for Fiscal Year 20:4. <br />staff look back to what programs and services worked the previous year and <br />i <br />they look forward to what city activities may be changed, dropped, or <br />! <br />increased in the coming year. <br />III. Municipal budget is a plan <br />To make a useful municipal budget, examine all city services and programs, <br />for example, firefighting services, police protection services, water and <br />sewer services, holding elections, park and recreation programs, park <br />maintenance, snowplowing, and any other city -funded activity. <br />League of Minnesota Cities Handbook for Minnesota Cities 10/1512015 <br />Municipal Budgeting Chapter 211 Page 5 <br />