The Finance Department annually prepares the budget document. The document is used to communicate the City’s organizational goals and policies, and financial plan for the coming year. The City Council has final authority for adopting the annual budget.
The first objective of a budget is to have expenditures equal to revenues. As public entities, this means keeping expenditures at a minimum so that taxes paid by property owners can be kept at a minimum while providing the desired level of services to the public. A Minnesota municipal budget is a comprehensive financial plan for a fiscal year running from January 1 to the following December 31. It includes:
- Estimates of the level of services
- Necessary expenditures
- Probable tax receipts and other income
It is a complete outline of city activities, containing estimates of probable costs and available revenues during the coming year.