However, when agreements allow for the expenditure of funds it would be prudent to include them in the appropriations budget.įunds That May Not Require a Budget Appropriation

Permanent Funds – These funds are typically subject to trust agreements and their use is restricted.

It is important to note that if you have established separate managerial funds for capital projects in enterprise funds, you must appropriate on either an annual/biennial basis or on a project basis.

Enterprise Funds – Typically, all enterprise funds must have an annual or biennial appropriated budget.

The nature of a special revenue fund is that the funds are restricted, committed, or assigned to a specific type of activity but these accounting restrictions do not eliminate the statutory budget requirements for a lawful appropriation. Special Revenue Funds – Normally, special revenue funds must have a budget appropriation.

These funds set tax levies and are therefore required by statute to have a lawful appropriation. General Fund (Current Expense) – All general funds must have an annual or biennial appropriated budget.* If your jurisdiction does not adopt a continuing appropriations budget for capital projects, it will need to include this in the annual/biennial budget. Fiduciary funds (agency funds, trust funds, pensions, etc.).Enterprise funds (may include business-type activities such as utilities, airports, and golf courses).These definitions have been obtained from resources such as the State Auditor’s Office if you are in doubt about whether or not to include a fund in the appropriations budget, we recommend including it. Fiduciary funds are not generally subject to budget requirements.īelow are some rules by fund type. Permanent funds are often subject to trust agreements and their use is restricted by such. (An appropriation is the legal spending level authorized by a budget ordinance or resolution.) Debt service and capital project fund requirements may be met by continuing appropriations contained in the enabling ordinance or resolution. Typically, all general (current expense), special revenue, and enterprise funds must have an appropriations budget.

Counties have a similar overall process, although some of the roles and deadlines are a little different.Īll cities, towns, and counties in the State of Washington must prepare a comprehensive entity-wide budget for all funds, including those funds for which appropriated budgets are not required and including estimates of the annual or biennial portion of continuing appropriations. The graphic below shows the general budget process for cities and towns. A budget can also be an evaluation tool, comparing commitments made in the previous year's budget with actual accomplishments.Īll cities, towns, and counties have statutes that specifically outline the procedures for the annual and/or biennial budget process. Mission statements, goals, and objectives convey how budget decisions relate to a wider vision for the future of the municipality. In most jurisdictions, the budget has evolved to include more than just financial data. It allocates resources among departments, reflecting the legislative body's priorities and policies, and controls how much each department may spend. At the most basic level it is a legal document that gives local government officials the authority to incur obligations and pay expenses. The operating budget is probably a municipality's most important work product.

You need a budget activation key