BUDGET PROCESS

Internal Process

The budget is prepared annually according to the Town of Parker Charter, State of Colorado budget law and the Government Finance Officers Association guidelines. The Town uses an incremental approach to budgeting. An incremental approach uses a base, or existing, budget and adjusts up or down as necessary.

The steps that occur during the annual budget cycle are as follows:

• Town goals are developed or reaffirmed by the Town Council. Budget requests must demonstrate how they align with the goals.

• Proposed capital expenses over $100,000 for the next ten years are submitted by each department and are scored by a cross-departmental team to develop the long range plan.

• Proposed capital expenses for the current year are submitted by each department and are scored by a cross-departmental team for the capital budget. The proposed capital expenses are limited by revenue projections.

• Expense line item budgets are submitted by the departments with the initial budget request equal to the current year’s amended budget less any one-time expenses in the prior year. Certain expense lines require a detailed worksheet listing each expense within the line item.

• Expense justifications for new expenses over $50,000 for the current year, including new personnel requests of any amount, are submitted by each department and scored by a crossdepartmental team for the expense budget. The proposed expenses are limited by revenue projections.

• Revenue projections are developed by the Finance Department together with each department using internal trends and external economic indicators.

• The Town executive management team reviews the requests and makes a recommendation to the Town Council through the Town Manager. Study sessions are held throughout the process to inform and seek the input of the Town Council. Adjustments are made as necessary.

• The Town Manager must submit a proposed budget to the Town Council by October 15. The Town Council must then hold two public hearings, with one of those by November 15, and adopt the budget and the annual appropriations by December 15.

• Based on the number of strategic planning and study sessions held with the Town Council, revisions to the proposed budget are usually minimal or not needed at all.

• Budget amendments are presented to Town Council two or three times a year as needed. These are passed by Town Council via budget ordinance after a public hearing.

Citizen Involvement In The Budget Process

Citizen involvement in the budget ensures the participation of the people affected by it. The proposed budget is made available on the Town’s website by October 15th. Through the Talk of the Town newsletter, social media and online communication, interested citizens are made aware that the proposed budget is available online for their review, and they are invited to provide feedback. Prior to adoption of the budget, the Town holds several study sessions which are open to the public. At these meetings, Council and staff openly discuss budget requests, including proposed major capital projects and new staff positions, capital outlay and special project items. Then, two public hearings are held as Council considers the annual budget adoption. The Town of Parker website includes information on Agendas, Minutes and Packets for the Council Meetings.

Section Title

DATE ACTIVITY

April 26, 2022 2023 budget process discussed with Executive Management Team (EMT)

April 27Kick-off of cross-functional team to develop the 10-year capital plan

May 9Scoring of 10-year capital requests completed by team

June 23Kick-off of cross-functional team to prioritize the 2023 capital requests

July 11Scoring of 2023 capital requests completed by team

July 13Allocation process methodologies for Internal Service Funds established

July 18Town Council Retreat - Long Range Plan Study Session

July 25Completion of expense line item requests and expense justification sheets

July 25Revenue budget drafted

July 27Kick-off of cross-functional expense team to prioritize the 2023 expense requests August 4Scoring of expense requests completed by the expense team

1, 2023 2023 fiscal year begins

1 2 3 4 5 6

7 8 9 10 11

27 2023 budget filed with the State of Colorado Department of Local Affairs and with the Governmental Finance Officers Association

Color Key

Strategic PlanningStrategic PlanningOperating Budget