PLAN103 Lecture Notes - Lecture 6: Operating Expense, Public Participation, Cash Flow
23 Apr 2016
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Document Summary
Fiscal imbalance: revenue is not enough to cover the expenses, imbalance in who raises money and how spends the money, province decides how the municipal government can collect money. Why do we budget: prioritizing what need, knowing and thinking ahead of time where money needs to go and if enough money is being made, anticipating the expenses and making enough to cover them. Implementation: public participation, monitor cash flow and costs, departmental, program or venue cost allocation, issues with spending allowances . Types: line-item (incremental) cost related to commodities (cost-control, set for each line, program (performance based) cost related to workload (are we meeting our goals?, more flexible. Sustainable budgeting funding imbalance: must match nature od expense and revenue to avoid funding imbalances, ongoing revenues should fund ongoing expenses (ex. Operating: one time revenues should fund one-time expense (ex. Capital: one time surpluses should not be used to fund ongoing operating programs/services. Moneys received and operating expenditure: capital fund.
