Managing budgets is an ongoing concern. In Breezy Point we accomplish monthly
financial statements to see how we’re tracking in accordance with budget. In
each area of the budget we have line items which are budgeted and
monitored. One line item in each area of
operation is designated for capital expenditures. Generally we see capital items as equipment
or construction but they can also be items of larger cost or non-reoccurring
expenditures.
In Breezy Point we manage capital budgeting in ways to minimize
the impact to the taxpayer and limit the “use it or lose it” mentality. Capital funds are requested annually and
budgeted for. The majority of the time
the amount requested is for a purchase in that budget year. Some years there are no or limited anticipated
expenditures but funds are budgeted to be used in a future year. In either event those funds not expended are
saved in the Revolving Capital Fund.
This fund has designated uses and provides for balances to be kept
individually. This means that there is
an account for police, public works, road improvements, and other uses with
individual accounts and balances.
On an annual basis, at year end, those funds budgeted for
capital that are unspent are transferred to the Revolving Capital Fund. These funds are assigned to their respective
accounts so funds are available when expenditures for a replacement or new
piece of equipment are needed. It also
provides a fallback position for funding when something comes up that wasn’t
budgeted for.
In keeping with this policy the city transferred funds from
the 2012 budget year to the Revolving Capital Fund. We also transferred some funds back to the
2012 budget for one account that was over budget. Doing this minimizes the peaks and valleys in
budgeting. It’s like using your savings
account to make sure you can cover the bills. In any event funds were moved to
provide for the future and keep the city in a healthy financial position.
