BUDGET DEVELOPMENT MANUAL
FISCAL YEAR 2018
Budget Mission
“The mission of the budget is to help decision-makers make informed choices about the provision of
services and capital assets and to promote stakeholder participations in the process.”1
The Budget Development Process
The budget is a plan that tells the citizens how the City will utilize the limited financial resources to
provide necessary services. The final plan is the responsibility of the City Council and the Mayor based
on the recommendations of the individual departments within the city.
The budget is a document that informs and educates the public and elected officials about the city’s
structure, achievements, challenges and direction. A budget document should ideally be a policy
document, an operations guide, a financial plan and a communication device.
The City of Meridian uses a combination of incremental and program based budgeting. Incremental
budgeting applies a defined incremental increase/decrease to the development of the base budget. The
base budget is personnel and operating costs that remain consistent from year to year. The City
modifies this approach by reviewing each base budget line to determine if the budgeted amount is
acceptable.
Enhancements to the budget (new personnel, new operating, or new capital expenditures) use a
program based budget approach. A program is a broad category of similar services (WHAT) for an
identifiable group (WHO) and for a specific purpose (WHY). A program has specified goals and
objectives. The first step in the budget process is to identify the needs or problems that make the
program necessary.
Department Detail
The Department Detail contains budget information for each of the City’s departments, funds and
programs. Format and presentation of department information must be consistent across all
departments for readability and comparability. The following information will be prepared for each
department and rolled together for a citywide presentation. Excel forms will be given to departments to
use for all required financial information. Email completed forms to Finance at [email protected].
1
The National Advisory Council on State and Local Budgeting Framework for Improved State and Local Government Budgeting.
Prepared by: The Office of Financial Management
1
Individual departments must provide those items in red. The Budget calendar is located on the Intranet
and in Attachment A.
 Section A - Graphs
o Percentage of City Budget
o Source of Funding
 Section B - Financial Information / Department Summary
o Division Staffing
o Division Vehicles
o Division Expenditures
 Section C - Department FY2018 Enhancement Requests
o E100 Enhancement Forms
o G100 Replacement Capital
o G200 Replacement Computer Equipment
o G500 Line Item Reallocations
o H100 Revenue Enhancements
o I100 Carry Forward Capital Projects
 Section D - Department FY2018 Maintenance of Current Operations
o Budget Base
o Department Cost of Employee Compensation
Section A – Graphs
Finance will prepare graphs for all department directors to be included in the budget request submitted
to the City Council and Mayor.
Departments may wish to prepare graphs of particular interest in relation to requested enhancements
and present them during the budget workshops.
Section B – Financial Information
Finance will prepare a department summary with the following information:
 Division Staffing
 Division Vehicles
 Division Expenditures
 Replacement Requests
 Enhancement Requests
The Financial Information will be included in the FY2018 final budget documents prepared for public
presentation.
Section C – Budget Enhancement
A major component of the budget process is the budget enhancement. Budget enhancements identify
an opportunity or problem, a course of action to address the problem and the financial impact of the
course of action.
A request for additional personnel, operating expense or capital outlay to perform a new service, solve a
problem or provide the same service to an increased population requires a budget enhancement
request. The budget enhancement request should tie to a particular objective and goal within the
department’s strategic plan.
Providing performance and outcome measures associated with enhancement requests will assist users
to review and analyze enhancement requests. Outcome indicators specifically describe the degree to
Prepared by: The Office of Financial Management
2
which department objectives are accomplished. Examples of outcome indicators are utilization rates of
facilities or employees, amount of workload per employee or equipment, or response time.
All computer/software enhancements must have the IT department approval prior to submission. The
IT department must approve the compatibility and support for any computer/software items installed
on the City of Meridian network.
Department enhancement requests must include a priority ranking. This ranking will enable the Mayor
and City Council to determine the importance of each enhancement to your department.
Enhancement requests should not be wish lists but realistic road maps to meet City and Department
goals.
FORM E100 – Budget Enhancement Request (See Attachment B)
Descriptive Title
The title should be specific and give a concise description of the objective of the request. For
example, “Mill and Drill to Allow In-House Fabrication” rather than “equipment”.
Personnel Costs
If the department is requesting a new position that did not have an established job description and
salary range, the Human Resources (HR) department must approve the new job description by the
end of February. HR will then need 3 to 4 weeks to establish a salary range prior to submission of
the budget enhancement request. Include the new job description with the enhancement request.
New positions will start at midpoint of the salary range for budget purposes only. (Final salary will be
determined upon the hiring process.)
Be sure to input the number of fulltime positions that you are requesting on the E100. Adding full
time equivalents during the year requires opening the budget and following the budget amendment
process.
Include all operating and capital outlay costs that will result if the position is hired. Below is a list of
possible operating and capital outlay items commonly associated with fulltime positions.
 Dues and Licenses
 Training
 Supplies
 Christmas and Incentive
 Clothing
 Cell Phone
 Desk Phone
 Furniture
 Computer to include software and installation
 Vehicle
 Gas, maintenance and repairs for vehicles or other equipment
All positions vacant for 12 consecutive months are subject to review by the Mayor and Council. The
Council could delete, freeze or request justification for all vacant positions.
Prepared by: The Office of Financial Management
3
Operating Expenditures
This section details any operating expenses requested including costs associated with personnel
listed above. It is crucial that costs be as accurate as possible, not estimates or guesses. Get bids
and written estimates from vendors. Departments are encouraged to use the state contracts.
Include back-up documentation with the request. Back-up documentation will be included in the
budget request book given to Council and will give your request substance and validity. Include all
costs, for example, if a software package or upgrade is requested, be sure to include the cost of
having it installed, training, and the on-going maintenance contract.
Capital Outlay
This section details any capital outlay expenses requested including costs associated with personnel
listed above. Once again, it is important that requested expenditures be well documented and
accurate. All costs must be included such as freight, installation and title fees. Include all associated
operating fees such as additional fuel and maintenance costs, utility costs, or service contracts.
Capital items are items with a value of $5,000 or more and a useful life of at least three years. City
infrastructure will be considered capital if the value of the item is greater than $25,000 and has a
useful life of at least three years.
Evaluation Questions
Answers to these questions are critical! This is the opportunity to present the why, what, and where
of the request and tie it to the adopted strategic plan. The Council and Mayor must be able to
clearly understand what is being asked for, why it is needed and what will be accomplished with the.
Answers should be clear and concise. Ask someone else to proofread the enhancement request.
1. Describe what is being requested and why?
 If the request includes employees, provide a basic explanation of job functions and the units
of work expected per person. Provide documentation that indicates current staff cannot
handle an increased or changed workload. If the request includes consulting or contracting
fees, include a description of the scope of work. If the request includes equipment, include
a description of the purpose of the equipment. If the request includes construction,
describe the service result of the finished project. For example, (all examples are fictional –
any resemblance to actual events is coincidental only)
o Parks Department Drivable Mower Request – Mower will mow 60 acres of parkland
on the northwest side of the City to include Settlers Park, Tully Park and Chateau
Park. Due to the 25-acre increase in park acreage, it is necessary to have six mowers
operating simultaneously. Currently, the Parks Department only has five mowers.
o Water Department Building – Construction project will develop a 15,000 square foot
building to house up to 35 Water Department employees. The project will include
yard space for up to 20 vehicles. The current Water Department Building is 5,000
square feet with the capacity of 20 employees. Additionally, the state housing
inspector has condemned the building. The parking lot is insufficient to park the
current 15 vehicles. City vehicles park in front of the building rather than locked in a
secure yard.
o Utility Billing Clerk - The new employee will enter and update third party billing
agreements for property managers and property rentals. Renter agreements have
increased an average of 30 per month in the last fiscal year. One employee can
Prepared by: The Office of Financial Management
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process 30 agreements per month. This increase requires an additional full time
employee.
2. Describe the method of funding?
 This is the fund, or combination of funds. Explain specific revenue sources.
o Example: the fees charged for third party billing agreements could fund the Utility
Billing Clerk in the example above
3. Does this request align with the Department/City’s Strategic Plan?
 Explain how the enhancement request aligns with the City’s strategic plan or the
Department’s strategic plan. If request does not align with an existing plan, please note.
4. Does this request require resources to be provided by other departments?
 For any projects that will require resources outside of the requesting department, please
reference the needs for the project.
o Example: Fire Project will require 10 hours of Finance department’s time weekly.
5. Does this enhancement include any needed Equipment or Software that utilize the City's
network?
 Answer “Yes” or “No”. The IT department must approve all enhancement forms involving
software or hardware prior to submitting to Finance.
Project Funding Costs
Complete this section with all prior year budget requests associated to this enhancement request in the
“Prior Year(s) Funding” column. The current year column will self-populate. Provide all future year(s)
budget-funding needs in the available future year columns.
Section D – Maintenance of current operations
Maintenance of current operations refers to those expenditures necessary to continue operating at the
same level. They include:
 The Base Budget
 Line Item Reallocation
 Cost of Employee Compensation
 Inflation
 Replacement Capital Outlay
 Replacement of Computer/Printer
The Base Budget
 The base budget is the current fiscal year appropriated budget adjusted for annual items
partially funded and with one-time expenditures removed. The Finance department will
develop the base budget. All departments will review the base budget with Finance in
March.
Line Item Re-Allocation Form G500 (See Attachment E)
 This form is for departments to re-allocate funds from one line item or one division to
another.
Prepared by: The Office of Financial Management
5
Cost of Employee Compensation
 Finance will provide each department with a list of the current fiscal year employees and
their appropriated salaries.
 It is the responsibility of each department to review their department list for completeness.
Please notify Finance of errors or omissions by May 19.
 Human Resources will provide Finance with their recommended merit pool increase.
Inflation
 Finance may recommend an across the board inflationary increase to be applied to the
budget base.
Replacement Operating/Capital Outlay Form G100 (See Attachment C)
 This form is to request replacement of existing operating/capital items that are in poor
condition or obsolete.
 It is each department’s responsibility to ensure that the inventory is correct. Please notify
Finance when it is necessary to delete, transfer or add an asset.
 Use the G100 form to list pertinent information about the current asset and describe the
requested replacement asset.
o For the old asset provide: Asset Tag Number – Asset Description – Date of Original
Purchase – Condition of Old Asset - Mileage as of March 30 for vehicles, Hours as of
March 30 for equipment – Notes = Additional information about the asset that may
assist in the decision to replace it.
o For the new asset provide: Description of new asset requested – Proposed Cost for
Replacement - Notes = Additional information about the asset that may assist in the
decision to purchase it.
Replacement Computer/Tablet/Printer Request Form G200 (See Attachment D)
 The IT department will complete each departments G200 form by mid-March. We
recommend you meet with the IT Department to discuss and review their recommendations
prior to the date the form is due (end of March) to Finance.
 To bring uniformity to the City’s various networks, the IT Department has established
recommended Standards and actual costs for various hardware and software. Costs for
computer equipment are available in the enhancement forms workbook. (See the tab
labeled “computer costs”)
Revenue Projections and Revenue Changes – Form H100 (See Attachment F)





Finance will prepare the revenue forecast for all funds for release in May.
Departments should use the revenue form to notify Finance of any expected decrease or
increase to revenue for the next year. Forms must be to Finance by April 18.
Examples of changes would be:
o Recreation Revenue
o Changes in Fee Structure
The H100 form is very important, as appropriations are based on the expected revenue. If a
department increases a fee and does not notify Finance about any additional anticipated
revenue, you will not have the appropriations to spend the additional revenue.
If you plan to use specific revenue for a specific purpose or project, identify the specific revenue
source on the enhancement.
Prepared by: The Office of Financial Management
6
o
Example: The use of recycling money to purchase recycled playground equipment.
Carryfoward for Capital Projects - I100 (See Attachment G)

This form is for capital construction projects appropriated in the current fiscal year that will not
be completed before September 30. This form is due to Finance July 10.
Budget Amendments




Finance must track budget amendments. Every effort should be made to avoid re-opening the
budget for an amendment. Departments will need to provide back up and appear before the
City Council to justify budget amendments.
Budget Amendment forms are available online. The form must be completed and signed by the
Department Director, Department Liaison, Mayor and Finance before it goes to Council. Once
the Council has approved the Budget Amendment, the Clerk’s Office will stamp the Budget
Amendment with the official seal and forward onto Finance.
Approved items will be added to the Amendment Report included with the monthly financial
statements.
o Each department is responsible for checking the amendment report to make sure their
amendments are included.
Do not submit amendment forms with the FY2018 budget packet.
Prepared by: The Office of Financial Management
7
Attachment A
Budget Development FY2018 Calendar
CITY OF MERIDIAN
5
12
19
26
5
12
19
26
6
13
20
27
February
1 2
7 8 9
14 15 16
21 22 23
28
6
13
20
27
March
1 2
7 8 9
14 15 16
21 22 23
28 29 30
3
10
17
24
4
11
18
25
3
10
17
24
31
4
11
18
25
April
2
9
16
23
30
7
14
21
28
3
10
17
24
4
11
18
25
1
8
15
22
29
2
9
16
23
30
5
12
19
26
6
13
20
27
6
13
20
27
3
10
17
24
31
7
14
21
28
4
11
18
25
Budget Task Description
All Departments begin working with Liaisons to discuss budget
Finance to deliver Base Budgets, Detail Fixed Costs, and 5 Year Trends tab to Mayor for March meetings
Finance to schedule Base Budget meetings with all Departments, Mayor and Liaisons
Finance and HR to provide Benefits Roadshow to Council
Finance to propose fund balance transfers for Fund 08 and 55 based on finalized Audit Report
All Departments send employee reclassification and equity adjustment requests to HR for review
Finance and HR to provide Merit Roadshow to Council
HR to send salary range for NEW job descriptions to departments
IT sends all Departments their recommendations for electronic purchases
Finance to provide 3% Property Tax Roadshow to Council
April
4/14/17
4/14/17
4/14/17
4/18/17
4/28/17
4/28/17
Assigned to:
All Depts.
HR
All Depts.
All Depts.
Finance
Clerk
Budget Task Description
All Departments send E100 Forms (Hard Copy) - Enhancements to Mayor for review
HR to send Employee Reclassification decisions to Finance
All Departments send E100 Forms (Digital Copy) - Enhancements to Finance
All Departments send G100, G200, H100 Forms to Finance
Finance to send Payroll - Base Budgets to all Departments for final review
Clerk to notify County Clerk of City Budget Hearing to be held on 8/22/17
May
5/12/17
5/16/17
5/19/17
5/19/17
5/22/17
5/24/17
5/31/17
Assigned to:
HR
Finance
All Depts.
Mayor
Mayor
Finance
Finance
Budget Task Description
HR to send Merit increase recommendation to Finance
Finance to send Budget Draft, Enhancements and Capital Replacement Requests to Mayor
All Departments verify they have reviewed the Base Budget & notified Finance of changes
Mayor and Department Directors finalize all department budget reviews
Mayor to send Prioritized List of Enhancements to Finance
Finance to send Budget Book out for printing and production for Mayor, Council, and Directors
Finance to deliver Mayor's Budget Draft Proposal to Mayor, Council, and Directors
5
12
19
26
6
13
20
27
2
9
16
23
30
3
10
17
24
June
6/1/17
6/19/17
6/20/17
6/30/17
Assigned to:
Clerk
All Depts.
All Depts.
All Depts.
Budget Task Description
Clerk to post a notice for the June and July Budget Workshops
Department Budget Workshop #1- Presentations to Mayor and Council (Half-Day)
Department Budget Workshop #2- Presentations to Mayor and Council (Half-Day)
Last day for FY2017 Amendments to be submitted to Finance
July
7/10/17
7/19/17
7/25/17
7/28/17
7/28/17
Assigned to:
All Depts.
All Depts.
Council
Finance
Clerk
Budget Task Description
FY2017 I100 FORM - Carry forward Amount for Capital Projects Due to Finance
Department Budget Workshop #3 - Discussions with Mayor and Council
Council to Adopt Tentative Budget for both FY2018 (50-1002) and FY2017 Amendments (50-1003)
Finance to send Public Notices to Clerk's office
Clerk to post a notice for the Public Hearing on 8/22/17 - Run for two weeks
August
8/1/17
8/22/17
8/31/17
Assigned to:
Budget Task Description
Last day for County Clerk to give City current operating roll (sec#63-1312 Idaho)
County
Council
Council to hold a Public Hearing for FY18 Budget & FY17 Amendments
Finance
Finance to submit L2 to Clerk
7
14
21
28
1
8
15
22
29
6
13
20
27
7
14
21
28
August
1 2 3
8 9 10
15 16 17
22 23 24
29 30 31
4
11
18
25
5
12
19
26
1
8
15
22
29
2
9
16
23
30
5
12
19
26
Assigned to:
All Depts.
Finance
Finance
Finance & HR
Finance
All Depts.
Finance & HR
HR
IT
Finance
All Departments begin working with Mayor to discuss budget
May
3 4
10 11
17 18
24 25
31
5
12
19
26
September
3
10
17
24
March
3/1/17
3/1/17
3/1/17
3/7/17
3/7/17
3/10/17
3/14/17
3/15/17
3/17/17
3/21/17
All Departments will be invited to attend Annual Budget Presentation Review Course
All Departments to send HR job descriptions for proposed NEW positions for upcoming budget year
7
14
21
28
1
8
15
22
29
4
11
18
25
Budget Task Description
Finance to send Preliminary Base Budgets to all Departments and Mayor
6
13
20
27
5
12
19
26
July
2
9
16
23
30
Assigned to:
Finance
All Depts.
All Depts.
All Depts.
1
8
15
22
29
June
4
11
18
25
February
2/1/17
2/10/17
2/22/17
2/24/17
6
13
20
27
7
14
21
28
September Assigned to:
Budget Task Description
9/5/17
Council
Council to Approve Budget Ordinance for both FY18 Budget and FY17 Amendments
9/8/17
Clerk
Last day to certify tax levy to county commissioners
(sec#50-1007) (no later than the Thursday prior to the 2nd Monday in September SEC 63-803(3) Idaho Code
9/29/17
Clerk
Last day to publish annual appropriation ordinance for the city's Fiscal Year (50-1003)
Prepared by: The Office of Financial Management
8
Attachment B
Personnel Costs
Full Time Equivalent (FTE):
G/L# Description
Fund#
Dept.#
G/L#
Proj.#
00
00
00
00
0
0
0
0
41200
41206
41210
41304
0
0
0
0
Wages
PT/Seasonal Wages
Overtime
Uniform Allowance
00
00
00
00
0
0
0
0
42021
42022
42023
42025
0
0
0
0
FICA
PERSI
Workman's Comp
Employee Insurance
Proj.#
G/L# Description
Total
Please only complete the
fields highlighted in
Aqua.
$
$
$
$
Total Personnel Costs $
-
Operating Expenditures
Fund#
Dept.#
00
00
00
00
00
00
00
00
00
00
00
00
00
0
0
0
0
0
0
0
0
0
0
0
0
0
G/L#
One-Time
On-Going
Total
0
0
0
0
0
0
0
0
0
0
0
0
0
Total Operating Expenditures $
-
Enhancement Details
Enhancement Title:
Department Name:
Department #:
Primary Funding Source:
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
-
Enhancement #:
Priority#:
CIP#:
Project #:
Capital Outlay
Fund#
Dept.#
00
00
00
00
00
00
0
0
0
0
0
0
G/L#
Proj.#
G/L# Description
Total
0
0
0
0
0
0
Total Capital Outlay $
Total Personnel Costs
Total Operating Expenditures
Total Capital Outlay
Total Enhancement Request
-
$
$
$
$
-
Total Enhancement Cost - Lifetime
Prior Year(s)
Funding
Fiscal Year
2015
Fiscal Year
2016
$
-
$
$
$
$
$
$
-
$
Operating
Capital
Total
-
-
Fiscal Year
2017
Fiscal Year
2018
-
$
-
Fiscal Year
2019
$
-
$
$
Total Estimated Project Cost: $
-
Enhancement #:
Department Name:
0
Enhancement Title:
0
Enhancement #:
Evaluation Questions
Department Name:
Enhancement Title:
Please answer all Evaluation Questions using the financial data referenced above.
0
0
0
0
1. Describe what is being requested and why. If the request includes employees, provide a basic explanation of job functions. If the request includes consulting or
contracting fees, include a description of the scope of work. If the request includes equipment, include a description of what the equipment will be used for. If the
request includes construction, describe the service result of the finished project.
2. Describe the proposed method of funding? If funding is split between Funds (i.e. .General ,Enterprise, Grant), please include the percentage split. List the amounts
and sources of anticipated additional revenue that will result from approval of this request.
3. Does this request align with the Department/City's strategic plan? If not, please explain how this request was not included in the Department/City strategic plan?
4. Does this request require resources to be provided by other departments? If yes, please describe the necessary resources to be provided by other departments.
5. Does this enhancement include any needed Equipment or Software that utilize the City's network? (Yes or No)
6. Any additional comments?
Enhancement Title:
0
Department Name:
Prepared by: The Office of Financial Management
0
Enhancement #:
0
9
Attachment C
CITY of MERIDIAN
G100 - Replacement Operating/Capital
Acct
Code
Asset
Tag
Number
Fiscal Year:
Department:
Asset to be Replaced
Description
Date
Condition
Vehicle
Proposed
of Original of Original
Mileage
Cost for
Purchase
Asset
Equip. Hours Replacement
TOTALS
$
-
2015
Notes
G100 - Replacement Operating/Capital
Attachment D
CITY of MERIDIAN
G200 - Replacement Computer/Printer Request Form
Acct
Code
Asset
Tag
Number
Equipment to be Replaced
Fiscal Year:
Department:
Date of
Original
Purchase
TOTALS
Prepared by: The Office of Financial Management
Condition of
Original Asset
Proposed
Cost of
Replacement
$
-
2015
Notes
G200 - Replacement Computer Request Form
10
Attachment E
CITY of MERIDIAN
G500 - Line Item Reallocation Request
FROM
ACCOUNT
CODE
TO
ACCOUNT
CODE
Budget Amount
Fiscal Year:
Department:
Dollar Amount
Increase /
(Decrease)
2015
Reason for Change
TOTALS
$0
$0
G500 - Line Item Reallocation Request
**Use two lines per transaction. One line representing the From account and the other line representing the To account.
***Both lines will have their respective budgets with the Increase or Decrease associated to it.
Attachment F
CITY of MERIDIAN
H100 - Revenue Enhancement Request
Revenue
Acct
Code
Fiscal Year:
Department:
Revenue
Description
Totals
Increase to
Revenue
$
-
Prepared by: The Office of Financial Management
Decrease to
Revenue
$
-
2015
Reason
for Increase or Decrease
to Revenue
H100 - Revenue Enhancement Request
11
Attachment G
CITY of MERIDIAN
I100 - Carry Forward
Acct
Code
Fiscal Year:
Department:
Project
Description
FY2014
Budget
Amt
TOTALS
Prepared by: The Office of Financial Management
FY2014
Spent to
Date
FY2015
Amt to
Carry Forward
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
$
-
2015
Estimate Date of Completion
Funding Source is "Fund Balance"
12