Local Government Budgeting:
Making Sense of Form 4-B
Larry DeBoer
Purdue University
June 16, 2006
Purdue Extension
Bottom-Kohlmeyer Fund Workshop
Budget Form 4-B: “The 16-Line Form”
Lines 1 – 5:
Total Funds Required
“What You Need”
Adams County General Fund, 2006
1. Budget, Incoming Year
9,226,505
2. Expenditures, 7/1-12/31
3,905,641
3. Additional Appropriations
56,920
4a. Loans to be Paid
0
4b. Loans not Repaid by 12/31
0
5. Total Funds Required
13,189,066
Budget Form 4-B: “The 16-Line Form”
Lines 6 – 9:
Total Funds
“What You’ve Got”
Adams County General Fund, 2006
6. Balance, 6/30
7. Taxes, December
8a. Misc. Revenues to Dec.
8b. Misc Revenues next year
9. Total Funds
4,081,011
2,501,768
1,744,958
3,680,742
12,008,479
Budget Form 4-B: “The 16-Line Form”
Lines 10-14:
Amount to be Raised
“What You Need to Get”
Adams County General Fund, 2006
10. Amount to be Raised
11. Operating Balance
12. Amount to be Raised
13. CAGIT PTRC
14. AMOUNT TO BE RAISED
1,180,587
3,869,387
5,049,974
0
5,049,974
The Budget as Checking Account
Expected Balance, Jan. 1
Expected Revenues, Bud. Year
Appropriations, Budget Year
Expected Balance, Dec. 31
Expected Balance, Jan. 1
+6. Balance, 6/30
4,081,011
+7. Taxes, December
2,501,768
+8a. Misc. Revs. to Dec. 1,744,958
Expected Balance, Jan. 1
-2. Expend., 7/1-12/31
3,905,641
-3. Additional Appro.
56,920
-4a. Loans to be Paid
0
-4b. Loans not Repaid by 12/31
0
Total
4,365,176
The Budget as Checking Account
Expected Balance, Jan. 1
4,365,176
Expected Revenues, Bud. Year
Appropriations, Budget Year
Expected Balance, Dec. 31
Expected Revenues,
Budget Year
8b. Misc Revenues next year 3,680,742
13. CAGIT PTRC
0
14. Amount to be Raised
5,049,974
Total
8,730,716
The Budget as Checking Account
Expected Balance, Jan. 1
4,365,176
Expected Revenues, Bud. Year 8,730,716
Appropriations, Budget Year
Expected Balance, Dec. 31
Appropriations, Budget Year
1. Budget, Incoming Year 9,226,505
The Budget as Checking Account
Expected Balance, Jan. 1
4,365,176
Expected Revenues, Bud. Year 8,730,716
Appropriations, Budget Year
9,226,505
Expected Balance, Dec. 31
The Budget as Checking Account
Expected Balance, Jan. 1
Expected Revenues, Bud. Year
Appropriations, Budget Year
Net, Budget Year
Expected Balance, Dec. 31
4,365,176
8,730,716
9,226,505
-495,789
The Budget as Checking Account
Expected Balance, Jan. 1
Expected Revenues, Bud. Year
Appropriations, Budget Year
Net, Budget Year
Expected Balance, Dec. 31
4,365,176
8,730,716
9,226,505
-495,789
3,869,387
Checking Account Indicators
Balances as Percent of Appropriations
June (Line 6 / Line 1)
44.2%
January (Total Jan. / Line 1) 47.3%
December (Line 11 / Line 1) 41.9%
Balances,
Revenues Twice a Year
50%
0%
January 1
June 30
Dec. 31
Checking Account Indicators
Target Balance, 6/30 & 12/31
One Half of Tax Levy, Percent of
Appropriations
½ x Line 14 / Line 1
Budget Form 4-B: “The 16-Line Form”
Line 11:
Operating Balance
Checking Account Indicators
Target Balance,6/30 & 12/31
One Half of Tax Levy
Line 11: Operating Balance (not
in excess of expense January 1
to June 30, less miscellaneous
revenue for same period)
Checking Account Indicators
Balances as Percent of Appropriations
June (Line 6 / Line 1)
44.2%
January (Total Jan. / Line 1) 47.3%
December (Line 11 / Line 1) 41.9%
Target/Ceiling (½ Line 14 / Line 1)
27.4%
Appropriations per Person
Adams County General Fund, 2006
1. Budget, Incoming Year
Population
Appropriations per Person
State Median
Highest (Pulaski)
Lowest (Clark)
9,226,505
33,872
272
245
506
128
Appropriations per Person
Counties
have larger general
fund appropriations per person if
– They are Small (less than 15,000
people)
– They are more wealthy (larger
A.V./person)
Appropriations per Person
Counties
have larger general
fund appropriations per person if
– They have less Homeowner
Property in their A.V.
– They have higher June balances
as a share of appropriations
Appropriations per Person
Adams County General Fund, 2006
Appropriations per Person
Not small
Not wealthy
More homeowners
But. . . Lots of balances
Other factors?
272
Assessment and
Tax Billing Schedule
December Taxes / Tax Levy
Line 7 / Line 14
Should be just under 50%
Assessment and
Tax Billing Schedule
December Taxes / Tax Levy
Counties over 80%:
2002-03
2003-04
2004-05
2005-06
none
72
61
19