By Tim Duhamel, Bloom Centre for Municipal Education

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Now that summer is here, budget season is on the horizon. The annual budget is the most important process that municipalities embark on each year. The budget process brings together all engagement, strategic and planning exercises into one place for review and decision. It is where strategies, goals and community aspirations come to life through the allocation of financial resources.

The challenge? The budget process is highly political, dynamic and complex, so to be successful we need to have a plan.

To have a plan, we must consider the end goal.

Ultimately, the goal of the budget process is a successful review with Council resulting in an approved budget. This allows a municipality to deliver services and achieve long-term objectives. To better understand our goal, we must realize the budget is not simply a financial document — it’s an action plan that moves the municipality towards a positive vision for the community.

Community vision starts with Council so budgeting success is significantly enhanced when we consider Council’s needs at the outset of the process. These include the key 4 Points:

1. Recognition of Council’s strategic goals
2. Understanding of the municipality’s challenges and opportunities
3. Identification of priorities
4. Evidence for taxation increases, such as growth, inflation and service changes

If we start off our budget process with the 4 Points in mind, our evidence gathering, decision making and recommendations will be significantly improved.

Adequately fulfilling Council’s information needs is one of the most important roles of the municipal financial officer. Recognizing and referencing the 4 Points in final Council budget documentation will clearly illustrate that resources are being aligned with strategic goals and priorities. The result will be an evidence-based Council budget review, allowing for enhanced evaluation, discussion and debate at the governance level.

Budgeting with a purpose!