Public Finance Proposal and Presentation
This paper intends to discuss a proposal and a presentation on public finance. In order to present an appropriate discussion this essay will consider the case of Cedar City.
Public policies and processes that affect Cedar City’s budget
Cedar City’s budget is affected by financial planning. However, financial planning at Cedar City is influenced by strategic goals, the level at which services are offered, the previous budget for the city, property tax percentage increase, personal services offered within the city, and services which are non-personal and are influenced by historical information along with projections (Tate, Strong, Kraus, & Xiong, 2015).
Furthermore, if the department of financial planning in Cedar City finds it significant to increase operations of the existing service levels, the new budget plan accommodates the increased amounts. For instance, a recent increase in the budget of Cedar City was influenced by the amounts required for managing projects for software maintenance of the city (Tate, Strong, Kraus, & Xiong, 2015).
Additionally, reviews made by different departments in Cedar City regarding their assets, project plans for capital improvement, potential sources of funding, and recommendations made on timelines for construction also affect Cedar City’s budget (Sarantsev, 2016). Markedly, Cedar City’s budget is affected by discussions made by the manager of the city, the finance director in the city, and the city council regarding needs of the city, the impact legislations have on the needs, and potential issues in funding before the budgeting process begins (Tate, Strong, Kraus, & Xiong, 2015).
For instance, the recent budget for Cedar City was influenced by the need to finish up flooded buildings, policies restricting an increase in levies for property tax, and the maintenance of existing levels of service (Tate, Strong, Kraus, & Xiong, 2015).
The elements involved in Cedar City’s budget preparation, budget enactment, and budget execution
The preparation of Cedar City’s budget involves an increase in operational funding and drafting of changes to revenues earned. Therefore, the preparation of the budget requires that the finance department meets other departments for reviewing needs of Cedar City and preparing requests of Cedar City. The manager to Cedar along with the directors are involved in reviewing projects aimed at improving on capital, which determines the components of the budget (Tate, Strong, Kraus, & Xiong, 2015).
Reports are then created to be used in subsequent processes of the budget which also includes enactment. However, before enactment of reports made regarding the budget of Cedar City, finance department along with the manager of the city review the budget requests to determine the requests along with charges to be included in the budget being prepared (Tate, Strong, Kraus, & Xiong, 2015).
For instance, during the enactment of the recent budget for the Cedar City requests for information of property tax, made the budget to balance. Moreover, the amounts allocated to revenues were parallel to amounts allocated to expenditure (Rahman & Weller, 2014). The manager of the city also requested the including of projects of capital improvement in the budget.
Hence, enactment involves reviewing of merits and the prioritization of different projects as subject to other projects (Tate, Strong, Kraus, & Xiong, 2015). However, execution of the budget considers the overall impact relating to recommended funding, considerations made for operations, and the relationship of operations to the budget of the City along with associated tax levies. Moreover, the council has to be informed of the situation of the budget and a public hearing for the budget prepared in accordance with IOWA (Tate, Strong, Kraus, & Xiong, 2015).
Long-term Financial alternatives for the City of Cedar Falls
Cedar City has three main alternatives for long-term financing. The first alternative is government funding. The government provides different types of funds to the City of Cedar Falls. The funds include general funds, finances for special income, finances for investment projects, and finances for liability service (Mervis, 2016). The finances allocated to Cedar City by the government are aimed at accounting for different revenue sources and revenue uses of the government’s primary unit.
The second alternative for long-term financing is proprietary funds. Proprietary funds refer to enterprise funds along with funds from internal services. Proprietary funds are viewed as self-supporting since they are financed from user charges and user fees (Tate, Strong, Kraus, & Xiong, 2015). The third alternative for long-term financing is fiduciary funds which are trust funds and funds from agencies. Fiduciary funds are used in accounting for different resources of financing held in the capacity of a trustee.
Public finance is a topic of great interest for all cities globally. The essay above has efficiently discussed public finance by considering the case of the Cedar City. Consequently, a discussion on the process of creating a budget in Cedar City, enactment of the budget, executing the budget, and funding of the budget has been presented in the paper above.
Mervis, J. (2016). Budget 2017: Mandatory spending dims prospects for Obama’s budget. Science. http://dx.doi.org/10.1126/science.aaf4045
Rahman, M. & Weller, K. (2014). Preparation for and response to the flood of 2008 in Cedar Falls, Iowa. International Journal Of Emergency Management, 10(2), 180. http://dx.doi.org/10.1504/ijem.2014.066201
Sarantsev, V. (2016). Treasury system of budget execution: organizational model and prospects. Moscow University Bulletin Of Them. SY Witte. Series 1: Economics and Management, 15-20. http://dx.doi.org/10.21777/2307-6135-2016-3-15-20
Tate, E., Strong, A., Kraus, T., & Xiong, H. (2015). Flood recovery and property acquisition in Cedar Rapids, Iowa. Natural Hazards, 80(3), 2055-2079. http://dx.doi.org/10.1007/s11069-015-2060-8
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