25LINKBUDGET(FULL) - Flipbook - Page 14
City of Plymouth 2024 / 2025 Budget
Functions of the City Budget
The City Budget has three primary functions:
1. Legal Function
The City budget serves as an authorization to spend through a series of appropriations.
Section 8.7 of the City Charter states that "... no money shall be drawn from the treasury of the
City nor shall any obligation for the expenditure of money be incurred for payment ... except
pursuant to an appropriation therefore."
2. Political Function
The City Budget is a mechanism for allocating scarce resources, operating on a basis different
from a free-market system. Unlike in a free market, where taxpayers individually choose and
purchase services, public services are provided to individuals regardless of their ability or
willingness to pay. Therefore, decisions about the amount of public funds raised and how they
are spent are primarily political rather than economic. This is evident in the fact that the
budget adoption process is overseen by an elected body and involves a public hearing.
3. Management Function
The City Budget is adopted with sufficient detail to define a set of expectations and objectives.
It outlines the quantity and quality of each City service (for example, residential refuse
collection is budgeted on the basis that it will be weekly rather than on another schedule). An
amount of money is appropriate, which is understood to be enough to provide the expected
service, based on historical costs, inflation projections, and evolving customer needs. The
service and related budget are then monitored to ensure that the service is provided as
expected and that the rate of expenditure is such that the appropriation will be sufficient to
provide the service at the expected level for the entire fiscal year.
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