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<br /> <br />CHAPTER 22 <br /> <br />. Is the budget consistent with the ability and willingness ofthe citizens to <br />support it? <br /> <br />. Does the budget discharge a city's responsibility for the future? Is it <br />consistent with the city plan and with other long-term policies for the <br />development of the community? <br /> <br />Whether or not a city is operating under Optional Plan B, approval of the <br />budget in its final form should be as a resolution of the council. An <br />ordinance is not necessary. A simple majority of the council will suffice to <br />pass the resolution. The resolution, which Plan B cities must adopt by Oct. <br />I, should set forth the total amount budgeted for each purpose or fund. The <br />resolution should also contain whatever detailed breakdown of expenditures <br />the council deems necessary for adequate budget control. <br /> <br />G. Budget execution <br /> <br />The preparation of a budget is meaningless unless the council makes sure <br />city employees follow it. The controls needed for an adequate system of <br />budget execution depend on the size ofthe city and its government. Larger <br />cities should use the system of allotments and encumbrance accounting, in <br />which the money budgeted for any specific purpose (the police department, <br />for example) is allocated to that purpose (the police department). <br />Additionally, cities may wish to consider adopting a legal level of budgetary <br />control based on categories of expenditures. This prevents exhaustion ofthe <br />appropriation before the end of the calendar year, and places limits on the <br />amount of expenditures that can be made l?Y a department without seeking <br />additional approval. <br /> <br />There aret~<? minimum contrqls every city should exercis~, regardlessqf. <br />size. While r~sponsibility for these contt61~ belongs to the 'council, either~n <br />. . administrative officer responsible to the councilor a council. committee may <br />implement the controls in actual practice. <br /> <br />The first of these controls is a requirement that no expenditure should occur <br />until a designated person has checked to see whether or not adequate funds <br />are available. In other words, no expenditure occurs unless the council <br />authorized the expenditure in the original or a subsequent budget resolution. <br />Once a city adopts a budget, only the council should authorize any <br />deviations. <br /> <br />22-12 <br /> <br />HANDBOOK FOR MINNESOTA CITIES <br /> <br />This chapter last revised 9/7/2005 <br />