WHITEHALL WATER PROJECT: Government Budgets and How They Affect the Whitehall Water Project

The following information was presented at the Public Hearing in May regarding the Whitehall Water Project and its rate increases.

Government budgets give local government officials the authority to incur obligations and pay expenses. They allocate resources among departments, reflecting the legislative body’s priorities and policies, and control how much each department may spend.

• FUND LEVEL: A fund-level budget allows for the greatest amount of flexibility and, therefore, requires monitoring throughout the budget cycle to ensure that actual expenditures fall within the various program or department projections established during the budget process. EXAMPLE: Whitehall Tax Increment Fund (TIF)

• DEPARTMENT/PROGRAM LEVEL: This refers to a budget appropriation level that limits expenditures to department or program activities. These programs and departments may be appropriated at this level as a tool for managing the budget. EXAMPLE: Public Works, Clerk’s Office, etc.

• BUDGET RESERVE FUNDS: These funds are used to save money to finance all or part of future infrastructure, equipment, and other fiscal needs.

- Cash Flow Requirements: Sufficient cash on hand to satisfy cash flow needs.

- Rainy Day Funds: Provides resources when revenues decline due to economic downturn.

- Repairs and Improvements: Purchases for operating equipment and vehicles as they become obsolete.

- Capital Reserves: Provides resources to meet the objectives of the capital improvement plan.

• CONTINGENCIES: Funding for times of emergencies and disasters.

• LONG STORY SHORT: The Town of Whitehall CANNOT move money from another fund to “help” a project.