The annual budget is a community's primary policy statement and establishes the priorities of government. The most effective budget process follows a formal calendar that begins in the fall of each year with revenue and expenditure projections, also known as a financial forecast. Moving forward, major milestones in the process often include these components:
▪ A joint meeting of the selectmen, finance committee, and school committee to review revenue projections and reach consensus on overall expenditure levels, use of reserves, and allocation of resources generally
▪ Distribution of budget guidelines to department managers so they can begin to prepare their appropriation requests
▪ Deadlines for submission of departmental appropriation requests and for preparation of a working, or draft, budget document
▪ Completion of meetings with department managers to review requests
▪ Adjustments to revenue projections
▪ Formulation of the initial budget recommendation by the town manager/administrator, finance director, or finance committee (depending on government structure)
▪ Budget approval by the board of selectmen in its capacity as the town’s chief policymaker
▪ Budget review by the finance committee with a deadline to ensure the printing and distribution of the town meeting warrant in sufficient time for town meeting members and residents
These steps all culminate in the presentation of an annual budget recommendation to town meeting. Throughout the process, decision makers should recognize and adhere to formal financial policies, such as those guiding the use of free cash and stabilization reserve funds and establishing debt levels.
The budget’s layout or format should be carefully considered since it tells town meeting the level of detail being voted on. It reflects a decision on the degree of management flexibility the town chooses to give department heads because it allows or restricts their ability to transfer money between budget line items without town meeting approval.
Finally, the budget adopted by town meeting should be closely monitored throughout the year. This involves reviewing financial data to verify that expenditures are consistent with town meeting votes, line items are not overspent, and receipts are tracking in line with expected results. Monitoring actual performance against the original budget can reveal problems early and give policymakers and managers time to take corrective actions to avoid potential deficits.
This is from the MA division of local services, January 2020 on annual budget process in towns.
The interesting point to me is how we always seem to overlook STEP ONE!
ReplyDelete▪ A joint meeting of the selectmen, finance committee, and school committee to review revenue projections and reach consensus on overall expenditure levels, use of reserves, and allocation of resources generally
Being that the BOS is the Policy wing of the government maybe the BOS should come up with a policy to actually follow the guidelines if they want to promote it.
Is the Finance Committee/ Advisory Committee involved in "set up" of budget.............NOPE!
Is advisory involved in deciding whether to use level funding, service, Zero based budgeting or whatever.......................NOPE!
Is advisory asked, utilized in determining the level of taxation utilized to create the budget...........NOPE!
Is the advisory consulted regarding valuation increases related to increasing or decreasing real estate tax rates...........................NOPE!
Why would a policy arm of the government refuse to utilize the finance Committee of the Town when discussing finances.................
As is stated in the beginning, Moving forward, major milestones in the process often include these components: OFTEN is not ALWAYS and as it states in the association of town finance comittee handbook:"Finance Committee
ReplyDeleteThe finance committee is a town’s official fiscal watchdog.
Its primary responsibility is to advise and make recommen dations to town meeting on the budget and other areas of fi nance, although in many towns they prepare and submit the
budget as well as comment on it. The state statutory authority
of the finance committee does not vary from community to
community, but the role and process does. (See “The Role of
the Finance Committee” at the beginning of the Handbook.)
Even though your statement regarding Often vs Always is correct I stand by mine that we ""always" seem to overlook step one.
DeleteThe role of finance committee and the process varies from town to town.
ReplyDeleteSection 16. Every town whose valuation for the purpose of apportioning the state tax exceeds one million dollars shall, and any other town may, by by-law provide for the election or the appointment and duties of appropriation, advisory or finance committees, who shall consider any or all municipal questions for the purpose of making reports or recommendations to the town; and such by-laws may provide that committees so appointed or elected may continue in office for terms not exceeding three years from the date of appointment or election.
ReplyDeleteIn every town having a committee appointed under authority of this section, such committee, or the selectmen if authorized by a by-law of the town, and, in any town not having such a committee, the selectmen, shall submit a budget at the annual town meeting.
Not sure if you noticed, but this MGL does say " SHALL consider ANY and ALL Municipal QUESTIONS" for the purpose of making reports and recommendations"
I ask you,where does the BOS garner its authority to restrict the authority of the Advisory Committee?
The law says by bylaw you can SUBMIT the budget to town meeting. It doesn't say by bylaw you can change roll/duties of Advisory. It doesn't say by bylaw you can create the budget or am I missing something......................lol
Thats right, I went there...............lol
ReplyDeleteSince I stepped in it. In for a penny, in for a pound.
ReplyDeleteI can't remember, but does the Town Moderator inform the town that "Town Meeting Times" will be overruled in the case of who submits the budget to Town Meeting? I didn't hear it on the recording
I don't see much for Selectman in Town Meeting Times after they return the Warrant. Correct me if I'm wrong, but thats well before the Towns Budget is presented.
Now if you like that. It does say Selectman right? Does it say or Selectmans designee, because the Board gave that away to the TA in a bylaw also.
The TA reiterated that via warrant article at last Town Meeting.
How clear is that?
Well, I will see your pound and raise you two pounds; I have a copy of town meeting times copyright 2001 and it states reviewed and updated June 2001. Much has changed since then (no mention of representative town meeting going remote in town meeting times) Moderators association is a bit behind times and some law changes. Templeton town by-law on town meetings, 22-17, procedural rules, most current issue of town meeting times is to be considered the general guidelines for all procedures of town meeting, except those procedures already provided for by the bylaws (T/A and BOS will create and present budget to town meeting). Mr. Mays move!
ReplyDelete"the selectmen if authorized by a by-law of the town" CH 39 sec 16 only allows for Selectman.
ReplyDeleteI understand the BOARD created a warrant article, brought before town meeting and it was passed.
I would agree that the BOS can submit the budget to town meeting. I just dont see the law allowing for the BOS designee.
I dont see the Supervisory Roll you suppose the BOS has over the Advisory Committees duties that are not spelled out in MGL.
Advisory Committee is the agent of the legislative branch(town meeting) of government.. Why would the Executive Branch(selectman) have limiting powers over the legislatives agent? Thats what the BOS has proposed when trying to limit Advisory Committees duties.........
So did I get that right. The question regarding did
Mr. Bennett,
ReplyDeleteSpeaking of the concept of right/wrong, shouldn't we be hearing about our articles and whether or not the AG feels they were all legal, even the ones passed by town meeting?
In town meeting times, page 33, states in part ". . . in Massachusetts, the finance committee's recommendations have no such force. They are purely advisory. A by-law that requires advisory to report is directory . . . " Since Templeton has a bylaw that was put in place by town meeting vote, the advisory committee seems to be ignoring the directive from town meeting (I do not consider a sheet of paper with yes / no on it along with 4 yes and 3 no being the kind of report town meeting directed it's committee to make) I also look at state law which mandates there be a finance committee in every town whose valuation is one million dollars or more and they have a 50% say in end of year transfers with the selectmen having the other 50% say. They also have oversight of town reserve fund. Other than those two items, I do not see much in the law giving advisory all these duties or power. I see opinions coming from an association of town finance committees. State law gives the budget to the selectmen if town meeting passes a bylaw stating as much, in Templeton, the legislative body has given that to the selectmen in effect, town meeting took it away from their committee and gave it to selectmen. As an FYI, nothing in the law prevents advisory from bringing their own budget option to town meeting and making an amended motion if they choose. As it states in the association of town finance committee handbook, the role of advisory committee varies from town to town.
ReplyDeleteIn truth the law only give the Selectman the "right to Submit" the budget to town meeting. I see nothing in the law about creating the budget.
ReplyDeleteSubmit: def. present (a proposal, application, or other document) to a person or body for consideration or judgment.
So the law says Submit. How did the Selectman get from Submit/present to creating?
Town by-law passed by town meeting approved by AG. It shall be duty of the Town Administrator in conjunction with the BOS to consider
ReplyDeleteexpenditures and develop a budget for the ensuing fiscal year of the several boards,
officers and committees of the town, as prepared by them in such form and detail as
prescribed by the Town Administrator.”; or take any other action relative thereto.
Submitted by the Board of Selectmen