TOWN OF CARY

DESCRIPTION OF BUDGET PROCESS

The Town's budget process begins each August with an evaluation of budget procedures used the prior year. Changes resulting from this evaluation are then implemented, and the budget planning process begins. During October and November, the Budget Office develops the Budget Manual as a reference tool for Town departments. The manual explains the budget processes and procedures and includes instructions, samples, and screen prints of forms, cost information on common purchases, line account definitions, schedules, deadlines, and policy directions.

The Town mission statement, statement of values, and goals and initiatives are utilized by departments in the development of the Capital Improvements Budget/Plan (CIB/P) and Operating Budget requests. At the Budget Kick-Off meeting, held in December, the Town Manager, Budget Director, and other key staff present information on the upcoming budget process. The departments then concentrate on developing their narratives, their portion of the operating requests, and “special requests” such as positions, vehicles, computer equipment, and facility upgrades/repairs. Departments submit their Operating Budget requests in late January.

After reviewing the initial department budget requests, the Town Manager, Assistant Town Manager, Budget Director and Budget Analysts meet with departments. These meetings allow departments to more fully explain their requests and respond to questions from the Town Manager. After these discussion meetings, expenditure decisions are made and the Town Manager's line item recommendations are returned to departments. The Manager's Recommended Budget is prepared and presented to the Council in early May and becomes available to the public for review.

The Town Council holds public budget worksessions during May, and June. These worksessions focus on the Capital Improvements Budget and the Operating Budget as separate components, but often topics cross over from one to the other. For example, future staffing and operating cost impacts of certain capital projects need to be considered when evaluating the capital program. Council directives are stated during these meetings and then incorporated into each budget document.

The recommended budget is officially presented at the first Council meeting in May, then public hearings are held at the regular Council meetings in May and June. The Council meets on the second and fourth Thursday of each month. The budget ordinance, along with any additional council directed changes, is adopted at the Council's second meeting in June.

PROCEDURES FOR AMENDING THE BUDGET

The Town adheres to the following procedures for amending the Budget during the year. The responsible department typically prepares all reports and other materials.

1. A transfer of funds between line accounts of the same division requires approval of the Manager (or his designee). The department completes a Budget Adjustment Request (BAR) for signature by the Accounting Supervisor, the Budget Director, and in some cases, the Town Manager or Assistant Town Manager. The Finance Department maintains a BAR log on the Town-wide computer server to track the status of the adjustment throughout the authorization process. After completing the authorization process, the BAR form returns to the Finance Department, where the change is entered in the Town’s accounting system.

2. A budget transfer between line items in the budget ordinance or across funds goes before the Operations Committee and subsequently requires approval by the full Council. The responsible department prepares a Staff Report to Council explaining the reason for the transfer. Upon Council approval, a BAR is prepared, and is tracked throughout the process in the BAR log, as described above.

3. Additional appropriations go before the Operations Committee and subsequently require approval by the full Council.

4. The Council has given the Manager authority to make appropriations from contingency, which, by state statute, must be reported to the Council at its next regularly scheduled meeting.

5. Recognition of unbudgeted revenues, such as a donation for an exhibit, must be presented to the Operations Committee, and subsequently, the full Council for funding approval and to authorize the related expenditure.