MONEY MATTERS
the quality of budgeting is critical to long-term financial sustainability and trust in government.
Local governments must answer some budgeting questions to improve the budgeting process. The following are recommended key topics to help in preparing your annual budget: • What is the best way to budget for my local government? • Why is budgeting important beyond the finance office? • How can governments best allocate resources? • Which budget practices improve equitable provision of services? • How can a budget encourage alignment with community priorities? • How to overcome significant technical challenges in budgeting. • How can governments adjust, survive and thrive during a crisis? Paul J. Kaymark, CPA is an Audit Services Partner with CSDA Business Affiliate Nigro & Nigro, PC. Paul can be reached at pkaymark@nncpas.com or (951) 698-8783.
BUDGET PREPARATIONS FOR SPECIAL DISTRICTS By Paul Kaymark, CPA Audit Services Partner at Nigro & Nigro PC
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special district local annual budget indicates an agency’s projected revenue and costs, as well as its plan for the future—what revenue will pay for which departmental services and for whom those services exist. Development of the annual budget in the public sector is more than just number crunching; it reflects a strategic plan and its conception should consider the needs and priorities of all stakeholders. The development, approval, and implementation of a public agency’s budget are critical steps of the budget process.
As the saying goes, “Don’t put the cart before the horse.” You won’t be able to get anywhere worth going if things are out of order, and that certainly rings true in the case of local government budgeting and planning processes. There is a proper order to ensure your funds are spent wisely. To address these challenges, several popular approaches to the budget process such as incremental budgeting, zero-base budgeting, and priority-based budgeting have been used by governments. However, all have their drawbacks and none are ideal in all situations. As governments now focus extra attention on the budget amid the global recession and pandemic, improving
Volume 16 • Issue 1
Murphys Sanitary District was approved for financial assistance from SRF for the upgrade of their wastewater treatment plant, with funds to be delivered in the form of a reimbursement grant. Unfortunately, the COVID-19 health crisis caused delays in processing reimbursements for the district. With its reserves depleted, the district found itself in urgent need of funds to pay a contractor invoice. A longtime CSDA member, Murphys Sanitary District reached out to the CSDA Finance Corporation for assistance in obtaining a $4 million bridge loan to tide them over. The Finance Corporation consultants expedited their efforts and in a short time were able to identify two bridge funding options for the district, including an affordable option that allowed the district to make prepayments on the loan with zero prepayment penalty. “Murphys Sanitary District thanks you all for your great work ethic, professionalism, and customer service in securing our financing. Everyone was wonderful to work with and the communication was amazing!” - CINDY SECADA, ADMINISTRATION MANAGER Visit csdafinance.net to request a no cost, no obligation rate quote.
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