Municipal Budgeting and Revenue Essay -- Budget Finance Government Ess

Municipal Budgeting and Revenue Introduction Every government entity has a primary goal, which is to be as efficient and effective as possible while expending the smallest amount of resources. In addition, the resources expended cannot be more than the resources received as revenues. The budgeting process is a tool that assists government entities in being both efficient and effective. Before a budget can be adequately prepared, you must first understand the budgeting concept and secondly be knowledgeable of budget types. Local governments use budgets for a variety of reasons, including: accountability, planning, evaluation, and information. A municipal budget is a financial map to help guide public managers and administrators of a local government in a particular direction to function successfully in getting the work of its citizenry completed. The primary purposes of the governmental budget are to legitimize public expenditures and to account for and control the usage of public resources. As budgets evolve, officials find that the annual budget should be used for planning, coordinating, and scheduling programs. Demands on municipalities force them to engage in establishing priorities and monitoring how well the priorities are achieved. It is no longer possible for a municipal government to do everything for everyone. A municipal government must prioritize the services that are mandatory, urgent, and that are done well. Resources must be aligned with strategies and citizen’s needs by allocating them over some time frame; usually twelve months – a fiscal year. The budget communicates the objectives of the municipality to all of the stakeholders. Stakeholders in a municipality include the taxpayers that primarily fu... ...delivery they will provide in the expenditure side of the budget. Bibliography Allan, Ian J., Revenue Collection Administration, A Guide for Smaller Governments. Chicago: Government Finance Officers Association, 1993. League of California Cities, California Municipal Revenue Sources Handbook. Sacramento: League of CA Cities, 1995. League of California Cities, Financing Cities. Sacramento: www.cacities.org, 2000. Lehan, Edward A., Simplified Governmental Budgeting. Chicago: Municipal Finance Officers Association of the US and Canada, 1981. MacManus, Susan A., Revenue Patterns in US Cities and Suburbs: A Comparative Analysis. New York: Praeger Publishers, 1978. National League of Cities, City Fiscal Conditions in 1999. Washington D.C.: National League of Cities, 1999. Swartz, Thomas R., Urban Finance Under Siege. Armonk: M.E. Sharpe, 1993.