MEMORANDUM

PUBLIC BUDGETING AND FINANCIAL MANAGEMENT Class Assignment for Expenditure Histories

And Division Budget Requests

October 21, 2020

To: Division Heads in the City of Meridian

From: Dr. Brian Chapman, Mayor and Dr. L. MaShelle Stewart, Special Assistant to the Mayor

DIVISION EXPENDITURE HISTORIES AND DIVISION BUDGET REQUESTS FOR FISCAL Year 2021

One point is clear from the readings that focus on how budget decisions are made. The expenditure history of a department or division influences the spending request for the coming year. It is necessary for you, as a new division head, to familiarize yourself with the expenditure history of your division.

It is necessary also for you, as a division head, to make a budget request for FY 2021. Keep in mind that all changes in division budgets will be based on the merits of the budget proposals. No division is guaranteed any particular level of increase, although you may request inflation increases as explained in some of the items below. The Meridian City Council has made it clear; division budgets will decrease if current spending levels are not justified.

BUDGET REQUESTS

Create a spreadsheet similar to the example distributed in class.

1. Insert the headings appearing on the sample spreadsheet distributed in class
2. Enter the items for fiscal year 2019 to 2020 from the budget simulation for your department or
3. division.
4. Create the 2021 continuation budget by adding inflation to the 2020 amount for each of the
5. following categories: Regular Salaries, Overtime Salaries, Contractual Services, and Supplies. Justify which percentage that you decide to use for inflation. Inflation is typically 1-2%, but the percentage increase is to your discretion. Be prepared to justify the percentage increase adopted.
6. Compute the fringe benefit line for FY 2021 Request for Continuation by determining 25 percent of the total amount spent on current personnel. This is computed by adding the amounts for regular salaries, overtime salaries, and temporary salaries.
7. Compute the total 2021 request for each line item by adding together the continuation budget, the expansion budget, and the new services budget.
8. Determine the dollar request increase by subtracting the FY 2020 budget from the FY 2021 request.
9. Compute the percentage increase by dividing the dollar increase requested for FY 2021 by FY 2020.

PERSONNEL

Regular Salaries

The ONLY regular salary money that you should request is for continuation budget inflation adjustment.

Overtime and Temporary Salaries

In addition to the 1 or 2 percent continuation increase for overtime and temporary salaries, you may request additional overtime and temporary money for expansion of services and/or new services. On the attachment provided, explain why you are requesting an increase in overtime in order to expand existing services or to start new services.

Request for a New Position

Division Heads are to request a new position. Use the Meridian Job Classification List and the Meridian Salary Schedule to determine the pay grade and cost of the new position. All new positions are to be budgeted at the minimum annual salary. If the new position expands existing services, insert the new position salary into the expansion column. If the new position provides new services, insert the new position salary into the new services column. You should also calculate the total fringe benefit (e.g. Social Security, Medicare, Health, etc.) included with this position and insert the dollar figure into the spreadsheet under Fridge Benefits -Request for New or Expansion of Services column. Be sure to include all other monetary fringe benefits associated with the position.

You should also include a position justification which fits well with the Mayor's priority to enhance the quality of life in Meridian. Your chance of receiving additional monies will hinge on your ability to meet this priority. You should indicate how the new position will enhance the quality of life in Meridian. You should also address the values of effectiveness and efficiency relative to the addition of new position(s) and how the addition(s) will fit into the overall mission/goal of the organization.

CONTRACTUAL SERVICES

The Chart of Accounts lists the items included in contractual services. While no request for individual items is necessary, you need to explain which items will be increasing in your request.

The contractual services request for FY 2021 should include monies to cover inflation so that existing services may be maintained.

You need to request increases in contractual services necessary to support any expanded services or new services. When making a request for contractual money to support expanded or new services, list the account code for each item requested.

SUPPLIES

The Chart of Accounts lists the items included as supplies (codes 6001-6901). While no request for individual items is necessary, you need to explain which items are covered under the additional money that you request.

The supplies request for FY 2021 should include inflation so that existing services may be maintained.

You need to request increases in supplies necessary to support any expanded services or new services. When making a request for supply money to support expanded or new services, list the account code for each item requested.

EQUIPMENT/CAPITAL ITEMS

You will need to complete a procurement form for whatever equipment you are interested in getting or replacing, along with the final equipment/capital request form.

For the procurement form, you will need to find three possible sources online to purchase the equipment from. You will decide which source to go with based on such factors as price and quality.

If the equipment or capital item requested is strictly a replacement, insert the dollar amount in the continuation request for FY 2021.

If the equipment item expands existing services and/or adds new services, insert the dollar amount in the expansion or new service column. You may divide the amount among these categories if the equipment item expands an existing service and adds a new service.

The Chart of Accounts also includes examples of equipment and capital items (codes 8112-8296). Each division head needs to request at least one equipment or capital item. You may have to dig to find out the cost of the item you wish to buy.

You should attach a justification for new equipment. Remember the request should fit well with the Mayor's priority to enhance the quality of life in Meridian. Your chance of receiving additional monies will hinge on your ability to meet this priority. You should indicate how the new equipment will enhance the quality of life in Meridian. You should also address the values of effectiveness and efficiency relative to the addition of new equipment and how the addition will fit into the overall mission/goal of the organization.

And Please show how you got the number, the Forecast number