Governmental Accounting: The Budget Process - Bolingbrook IL Case Study PDF

V246 - Governmental Accounting The Budget Process - Bolingbrook IL Case Study Course Structure  Areas of the course – Business – Not-for Profit – Government  Learning objectives and alignment with each assignment – Canvas/Pages is organized by Class – Tophat is organized by Class....

V246 - Governmental Accounting The Budget Process - Bolingbrook IL Case Study Course Structure  Areas of the course – Business – Not-for Profit – Government  Learning objectives and alignment with each assignment – Canvas/Pages is organized by Class – Tophat is organized by Class. 2 Exercise Identifying the correct fund The Problem: The city of Bloomington devotes resources to improving Kirkwood area. On top of this, it adds 3% to its transportation tax and earmarks it for that purpose. What fund category and fund name is this transaction and why? The Solution: Fund category: Governmental type Fund name: Special revenue Why: -Since there is 3% transportation tax, it is revenue for a special purpose -Using it for something other than debt service or capital project 5-6 V246- Elements of Governmental Accounting Budgetary Process Words you should know 1. Budget 2. Estimated Revenues 3. Estimated Other Financing Sources 4. Appropriations 5. Budgetary Fund Balance 6. Encumbrance 7. Levy  Authors: CEO, legislative body, budget officer  Consider: Expected changes in revenue Unusual expenditures expected Expected current year surplus/deficit Economic conditions  Check for errors  Verify all is appropriate, justified, realistic  Make sure budget is balanced  Help ensure goal congruence  Budget summary to CEO To prepare for legislative review 3-9 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall  Budget message  Budget summary  Capital projects schedule  Detailed supporting schedules  Drafts of tax levy ordinances/acts 3-10 Copyright ©2011 Pearson Education, Inc. publishing as Prentice Hall  Copies disseminated in advance  Presented by CEO  Public hearings  Modifications  Appropriation ordinance enacted to set ceilings  Next: Publish budget, enter into system 3-11 Budget - Bolingbrook, IL Property Tax The correct answer is actually - $664. The Village of Bolingbrook is only 9.25% of your entire property tax bill. That $664 annually* (on average, some residential households pay a little more, some a little less) covers and supports village services like public safety (police, fire, ems, emergency services), public services (snow plowing, street lights, maintenance, forestry, roads), debt service, pension obligations, capital projects, facilities, etc. The other 90% of your bill DOES NOT go to the Village of Bolingbrook. It goes mostly to your school district (about 70% to the school district) and then the remaining to the county, community college, forest preserve, parks, libraries, township, etc. By Michael Carpanzo Retrieved 3/25/21 from: https://patch.com/illinois/bolingbrook/ep/1752246/nodx Exemptions Homestead Exemption for Persons with Disabilities, Standard Homestead Exemption for Veterans with Disabilities, and Senior Citizen Assessment Freeze Homestead Exemption to be automatically renewed and processed without re-application for 2020 payable in 2021. Retrieved 3/25/21 from: https://www.bolingbrook.com/index.asp?SEC=28490EF8-B3C9-4503-A4C1-B67E0C2 B4B0C&DE=DB8C9E33-C83B-481C-949C-E9AF2034F75C Headline - Will County Gazette Bolingbrook, population 74,518, recorded a median sale price of $227,750, based on data from the 250 properties sold during the first half of 2018. In 2017, homeowners paid a median property tax bill of $6,052.98, according county tax data from the Will County Assessment Office. That’s 2.66 percent of the community’s median home value. In the U.S., the average effective property tax rate is 1.19 percent. Put another way: a $227,750 home in Indiana, where the effective rate is 0.89 percent, would have a property tax bill of about $2,027, or more than $4,000 less per year. Retrieved 3/25/21 from: https://willcountygazette.com/stories/511544200-analysis-bolingbrook-pays-property-ta xes-two-times-national-average V246 In Class Activity Groups 1. Citizens 2. Mayor & City Council 3. Department Heads Each group has been provided information based upon their role. Select a spokesperson for your group Provide your deliverables on time Round 1 1. Citizens must provide a list of “services needed” from city government 2. City department heads must provide a list of planned expenditures – This includes costs to provide citizen services needed and type/amount of potential revenue streams to cover the cost 3. Legislative group must provide a vision and mission for the community. Round 2- Public Hearing 1. Executive must present the budget to the public and collect feedback from citizens 2. Department heads must provide support to executive branch as requested (Research on costs to provide/comparative data/etc) 3. Executive must provide a balanced budget  Class 20 – To Do 1. Read Chapter 7 2. Students should complete the lecture slide questions found at the end of the slides at www.tophat.com 3. After reviewing the class lecture, students must complete Class 20 (Quiz Use of Funds) INDIANA UNIVERSITY 1820-2024