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<br />CHAPTER 22 <br /> <br />The second essential control is a budget reporting system. The council <br />should require a monthly or quarterly report that details for each budget <br />item, the amount budgeted, the amount already spent, the amount not yet <br />spent but committed for a particular budget item, and the budget amount that <br />remains unspent and uncommitted. With this infonnation, the council can <br />scrutinize administrative operations, exercise greater control over future <br />spending, and make any needed adjustments in the budget. <br /> <br />A reporting system is the most important facet of any expenditure control <br />program. Budget reports should include a summary of work <br />accomplishments under the budgetary appropriation to-date. Only with this <br />information in hand, can the council maintain an adequate check over the <br />enforcement of the budget and the administrative activities of its <br />subordinates. <br /> <br />IV. Long-term budget planning <br /> <br />While cities only prepare their budgets for the next 12 months, councils <br />must be aware of the long-range financial problems and demands facing the <br />city. <br /> <br />A. Long-term financial plan <br /> <br />In addition to the annual budget, a long-term city financial plan includes the <br />following: <br /> <br />Public services program--a long-range plan f-or all public services, <br />estimating future needs for recreation, fire protection, police protection, and <br />so on. The plan measures the objectives and needs for each city department, <br />the standard ofs~rvices, and the irrtpact of suc~ services on th~ annual <br />operating budget. <br /> <br />Capital improvement program--a comprehensive list of projects and <br />facilities the city needs or will need to carry out public services. <br /> <br />Long-term revenue program--a tentative revenue policy that develops <br />long-term plans for financing public services and capital improvements. <br /> <br />Capital budget--this summarizes, on a five- or six-year period, the capital <br />or money requirements for capital improvements or purchases. A capitol <br />budget lists a priority for each anticipated investment in community <br />facilities, and balances this with the availability of revenues. <br /> <br />HANDBOOK FOR MINNESOTA CITIES <br /> <br />22-13 <br /> <br />This chapter last revised 9/7/2005 <br />