25LINKBUDGET(FULL) - Flipbook - Page 12
City of Plymouth 2024 / 2025 Budget
The City Budget Process
The annual City budget process involves a cycle of five stages:
Stage 1. Preparation of budget requests by departments
Departments often request more funding than they are currently spending in the budget to
enhance or expand services. This practice is essential in the budget process as departments
possess expertise in their respective areas of responsibility. It allows both the City Manager
and the City Commission to make informed decisions regarding the allocation of funds. While
department heads may propose strategies to generate additional revenues, they are typically
not obligated to present a balanced budget to the City Manager. This is because department
budgets are funded, at least in part, by property taxes, state-shared revenues, and other
general revenue sources that are not earmarked specifically for any single department.
Stage 2. Consolidation of requests into a unified budget recommendation by the City Manager
As per the City Charter, the City Manager must present a balanced budget to the City
Commission, considering the constraints of limited revenues. This requires making value
judgments regarding public policy and program priorities. Throughout the budgeting
process, efforts are made to explore avenues for increasing revenues and delivering existing
services more efficiently to align department requests with projected revenues. Additionally,
in an inflationary economy, the decision of whether to raise taxes or reduce services and/or
postpone capital expenditures must be carefully evaluated. Consequently, the budget
presented reflects significant policy decisions made by the City Commission for
implementation by the City Manager.
Stage 3. Review and adoption of the City budget by the City Commission
The City Commission plays a crucial role in the budgeting process by reviewing the City
Manager's proposed budget and providing policy guidelines for the upcoming fiscal year's
programs and projects. In assessing future spending, the Commission evaluates the priorities
outlined in the current budget, the effectiveness of program execution by the administration,
and the City's future direction. To facilitate informed decision-making, the City Manager’s
proposed budget must encompass a comprehensive range of information, including:
•
Actual revenues and expenditures from the previous year, serving as a basis for
evaluating the current and proposed budgets.
•
Original and amended budgets for the current year, along with projected revenues
and expenditures, to assess the administration's budget execution and anticipate
revenue and expenditure trends.
•
Department requests not included in the proposed budget and proposed expenditure
cuts aimed at balancing marginal revenue reductions, providing insight into the City
Manager's recommendations.
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