Budget Guidelines (rev. 1.5.2023)

FY 2022-23 Budget Calendar Item

Due Date

Resident Budget Survey Posted (Closes at end of January) Personnel Allocations and Overtime Budgets sent to departments

Jan 2023 Wednesday, December 14, 2022

CIP updates and new projects entered Budget Kickoff Meeting

Friday, January 13, 2023 Wednesday, January 6, 2023

Personnel Allocation Changes Due Overtime Budget Changes Due

Tuesday, January 10, 2023 Wednesday, January 18, 2023

Mid-Year Financial Status / 5 Year Forecast Update at Study Session CIP Preliminary Report Presentation at Study Session Internal Service Charges due (Central Garage, Tech Services, WC, Risk) Personnel Posted to Munis for department review Finance set items and internal charges are loaded Munis is open for budget entry Due from departments: Proposed department budgets and package requests CIP for the fiscal year Revenues Estimated Actual Expenditures Personnel corrections / adjustments

Monday, February 13, 2023 Monday, February 13, 2023 Wednesday, February 1, 2023 Wednesday, February 1, 2023

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Monday, February 6, 2023

Wednesday, March 8, 2023

Capital Outlay List

Finance review of department budget submissions

March 8 - March 31, 2023

City Manager meets with departments to review proposed budgets CIP Presented to Planning Commission

March 9 - March 31, 2023

City Manager approves recommended changes for proposed budget, packages posted, and departments notified

Friday, March 10, 2023 Friday, April 7, 2023

Department summary pages and org charts due Fee Changes are due from departments

Friday, April 14, 2023 Monday, May 1, 2023

City Manager Proposed Budget submitted to the City Council

Tuesday May 9, 2023

FY 2023-24 Budget Guidelines 1 12/11/2023

This document serves as a guideline during the budget process to help you develop your budgets. To see specifics of how to do things in Munis, refer to the Munis budget manual on the intranet.

Personnel Allocations -

This is the spreadsheet of all staff sent out by Finance Include any org key changes If changing a split (multi org key) employee, confirm the FTE for that position still adds up to 1.0 Vacant positions: indicate what level you intend to fill this position at, especially if it is a position in a series o There should be no “frozen” positions, vacant positions are funded Total FTE can be decreased, but not increased via the allocation spreadsheet NO raises, promotions, conversions, additions to headcount should be indicated here – these should all be submitted as budget packages

Personnel Budgets -

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Personnel budgets will be as of January 9th. If the department has significant changes after that time, please work with Melissa directly on how to accommodate these.

We will incorporate step and contractual agreements, including longevity.

If an employee is scheduled to get a special increase outlined in their individual employment contract or offer letter, let Finance know the specifics of this to include in the budget. This is typically for non-represented employees.

It is important to validate the total headcount (part-time included) once this is posted.

Remember, personnel budgets will never be perfect. Personnel and staffing are continuously in motion, due to hiring and turnover. The budget is our best estimate, based on what we know at a point in time, to allocate the resources we think will be needed for the next fiscal year.

Overtime budgets Finance will send a recommended budget by org key, based on trending for your department to confirm or adjust as needed. Significant increases will be submitted for review and approval by Finance to the City Manager.

Operating budget This refers to maintenance and operations costs (not personnel).

- General Fund Budgets: The total non-personnel budget should be equal to or less than FY 2022-23 - Other funds: The total budget should be within 5% of FY 2022-23, if the fund has enough revenue or fund balance to accommodate an increase o Additional increases to non-GF budgets should be submitted as packages - To calculate the base/target budget: o Start with the total non-personnel related budget lines (anything not in 5100:1299), as shown in Munis in the Adopted Budget, or in the Adopted Budget Book o Remove one-time line items, including capital outlay o Remove items set by finance / internal service charges (see below details)

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For non-General Fund departments / divisions, the budget may be increased if there is an offsetting revenue increase Line-Item Details must be entered for lines more than $5,000 o Do not enter the same information as the object code description, ▪ Example, entering “professional services” for detail on object 5226, ▪ Entry should be something like “Services for x, y, and z” o This is how Finance finds answers for City Council and staff when we are asked “Where was X budgeted?” o All professional services (5226) lines must have details to support the budget. This list is requested by City Council annually during budget review.

Five-year forecast for non-General Fund departments: o If operating expenses are above the estimated revenues, confirm there is available fund balance to cover the overage. o No funds will be allowed to budget a negative fund balance over the five-year fund forecast o This not required as a submitted document, but may be necessary if the department is requesting budget expenditures that exceed available funds (fund balance + estimated revenues) Non-departmental org keys: Finance will send a proposed budget to departments for review Rounding: All entries should be rounded to the $100 level, such as $5,400 or $100. o $1,000 rounding is preferred and used if possible o Remember, the budget is an estimate and not a precise amount for expenditures o It is acceptable to have expenditures online items without budget, as long as you stay within your total budget at the org key level (or fund, for those departments in separate funds) As with prior years, technology equipment (computers, monitors, etc.) should be budgeted at the department level, work with Tech Services for the amounts needed to replace your departments equipment, in object 5224. Enter the budget detail for these items. This will help when coding invoices when items are purchased.

3411 5106 5107 5130 5207 5221 5223 5225 5209,5315 51XX 5228-5234 5510-5515 5212 5236

Items that the budget team will load in – DO NOT modify or add other items to these lines: Interest Revenues Retiree Medical Workers' Comp Personnel Charges to Projects Risk Interfund charges - combined with F&A line this year ERP - being combined with F&A line this year Tech Services Memos - combined with F&A line this year Central Garage Personnel Expenses & Overtime Utilities expenses New – 5234 will be used for Fiber charges from IPL Debt Items that the budget team will load in, but departments may also add items if needed: Radio charges* Finance will load in radio charges, but departments may add other items here.

Motorola lease* Finance will load in Motorola leases, but departments may add other items here.

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NOTE: This year, Finance, Human Resources, Tech Services, and General Fund services will be fully transitioned to an internal service fund and will be charged out citywide using object 5223.

Budget Packages Any new items or programs that do not fit into your base budget will need to be entered as packages. You may move money between cost centers (within the same fund) or line items, if you don’t modify lines that were updated by the budget team. Funds other than the GF need to ensure their revenues cover increased expenses.

- Required for any personnel changes o Including salary increases (outside of union agreements), conversions, and additional FTE o If requesting new headcount, include benefits - Operating expenditures changes (not personnel) less than $5,000 do not need to have a package entered, this should be absorbed within the department budget - Overtime increases of more than 10% at the department or fund level, against the prior year adopted budget Revenues -

Finance will enter interest, property tax, sales tax Non-general fund five-year forecasts should include your revenue assumptions for review Departments should enter any revenues you generate or manage into Munis- include detail item o General Fund revenues can be sent directly to Melissa for entry See list of assigned revenues on the intranet

Projected Actual Expense / Revenues for FY 2022-23 This will be in the column “2023 PROJECTED”. See Munis budget manual for specifics as to how to enter this amount.

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Munis will automatically estimate the year-end total based on year-to-date trending. The department needs to verify this and /or correct, or fill in if showing zero Munis projects are based on the year to date actual, divided by the current number of months that have entries, multiplied by 12 o If you have a large one-time expense, this can skew the projection You probably already have this information as part of calculating your budget for next year, the entry in Munis allows Finance to provide the information as part of the proposed budget submission to City Council Finance gets asked what the estimated actual revenues and expenses are by City Council, to inform them as to how the proposed budget compares to what we anticipate for this fiscal year This will be shown in the proposed budget for City Council review and approval this year, at the org key and fund levels on the department pages and fund summaries This should be reviewed for ALL lines: personnel, maintenance and operations, and revenues

Capital Outlay Form Any capital assets or equipment purchases budgeted over $20,000 or an expected useful life of more than one year, must be itemized on the form posted on the intranet -

o This refers to the per unit cost, not the total for a group of assets Like our CIP, we are requesting all capital outlay be outlined in a six-year plan The recent fixed asset inventory can be used as a reference document to assist in planning/replacement needs and is posted on the Budget page of Citynet 4

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This form – for FY 2023-24 budgeted expenses only (first tab of the workbook) will be made into an exhibit for City Council and utilized during the year by the purchasing team when requisitions are submitted to determine if items were in the Adopted Budget These items still need to be entered in Munis as part of your department budget Capital outlay not included in the approved schedule can be added via the budget amendment process during the fiscal year Most capital assets should be budget in objects 5400:5499

Capital Improvement Projects Like last year, if your department has CIPs planned for FY 2023-24, these will need to be entered into Munis by each department.

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CIP’s go in 70XX These need to have line-item details o For example, $800,000 in capital projects should be broken down into: $500,000 – Project Name with project number, if there is no number assigned yet, put TBD $300,000 – Disneyland update, 21003

All this information gets published in the preliminary budget and will aid the accounting team in setting up the project ledger.

Additional CIP Information: In developing a CIP, it is important to distinguish between operating and capital expenses. Generally, these items are defined based on their cost and frequency of occurrence. Operating items are those that represent ongoing operating expenses, such as maintenance, outside of onetime capital expenditures. Presented below are the definitions developed specifically for the City of Independence for capital expenses that should be included in the CIP budget: - Any construction of a new public facility (e.g., a public building, a public street, water and sewer lines, parks, play field, or the like) or an addition to, or extension of, such a facility.

- A nonrecurring rehabilitation or replacement of existing public facilities, or major repair of all or a part of a public facility, provided that the cost is $100,000 or more.

- Purchase of major equipment of $100,000 or more (either one item or several items with a cumulative one-time purchase of $100,000 or over) and a useful life of 5 years or more.

Department Org Charts An org chart will be sent for review, please update as needed and return.

Department Summary – REQUIRED Summary pages from FY 2022-23 will be sent to departments. Do not update the tables – Finance will update the numbers later; these are linked to other files.

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This is your department’s chance to tell your story to the public and City Council. Consider items that support your budget and package requests and inform the public about your departments daily work. How is your department serving residents or supporting internal operations?

At the department level, update the following: Department mission -

Currently has prior year mission statement, update with Mission statement that is presented in CM presentation

Significant Operational Changes -

Department level operational changes / impacts Should be a summary of the significant changes on org key pages / high level Example, moved work from one program to another or added/ removed programs Example, COVID impacts, other department wide impacts / changes

Strategic Plan Connection -

How does your departments' work plan support the strategic plan?

Performance metrics -

will be updated by Finance with the quarterly reports compiled by the CM office.

At the org key / program level, update the following: Program mission -

Currently has prior year mission statement, update as needed

Accomplishments -

Major accomplishments in this program / org key during the current fiscal year Prior year accomplishments were left in for example purposes, but need to be updated

Significant budget changes -

Examples: headcount allocation, increased / decreased expenditures Budget Packages that were approved Consider changes to the budget that City Council may have questions about Prior year changes were left in for example purposes, but need to be updated

This information will also be used for your Budget Presentation to the City Manager.

City Manager Presentations A PowerPoint template will be emailed for department use. The PowerPoint will closely align with the above department summary.

This year, the budget team will schedule the City Manager meetings with the Assistant City Manager as one meeting, instead of two rounds of meetings as in prior years.

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If you would like to meet with the budget team prior to the CM meetings to go over any concerns, please let Melissa know.

Fee Changes Departments with updates to the Schedule of Fees for FY 23-24 need to submitted changes to Turner Adams by May 01, 2023. The updates will go to Council with the budget and go into effect on July 1, 2023. Each department with changes will need to provide the following: -

A list of fee changes (download and then revise the fee schedule posted on the intranet, in RED) Verification that these changes are justified per the Keller Test Indication if the fees are comparable to neighboring jurisdictions Fiscal impact of the changes

Additional Resources available on Citynet / Department Pages / Finance/ Budget - Munis Budget Manual - Chart of Accounts – Expense Object Numbers - Capital Outlay Form - Fixed Asset Property report - Assigned Revenues by Department - Prior Year – Memo’s to City Council and Budget Q&A for reference - FY 2023-24 Budget Calendar - Sample of department pages with changes for this year - Fee Schedule: can be found on Citynet under the Finance page - FAQ’s – updating as questions are received during the budget Finance will add the PowerPoint presentation template and other documents as needed throughout the budget process.

Please note that the Assigned Revenues by Department, Capital Outlay Form, and the Inventory Report resources found on Citynet are Excel documents. If you experience issues opening these documents in Edge, you may need to update your settings. To update settings, open Edge and go to edge://settings/downloads . The following page will appear. Turn off “Open Office files in the browser”.

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The budget team is here to help! Please reach out to Melissa Sill or Turner Adams with questions.

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