Park Ridge, Illinois budget goals and policy analysis

City of Park Ridge, Illinois: Budget Analysis

The budget for Park City, Illinois is complete with a table of contents, which identifies all pages by page number, and the page numbers are correct according to the table of contents. Included in the budget for Park Ridge, Illinois are the city's non-financial policy goals as well as these being stated in the Budget Message separate from departmental sections. Other planning processes are discussed addressing both short-term factors affecting the budgeting decisions and relating how these short-term factors affected the development of the city's annual budget. Included in the budget is information that sets out the city's priorities and goals for the year including issues facing the city's budget development along with the city's solution for addressing these issues. The present budget is compared to previous years. Included in the budget is an overview of the budget with summary information clearly labeled as well as budgeting trends stated in the overview.

I. The Budget as a Policy Document

Goals & Objectives

The goals of the Park Ridge, Illinois Budget are clearly stated as being the identification of "conservation base revenues, core services and their associated costs" as well as the development of a two-year balanced budget. (City of Park Ridge, Illinois 2011/12 Budget) It is reported that the City had in recent years "incurred deficits in the general operating fund primarily due to revenue shortfalls." (City of Park Ridge, Illinois 2011/12 Budget) The City budget states that it can no longer be assumed that revenues will increase in the future as has been so in past years. For this reason, management is reported as having been "extremely careful to budget conservatively." (City of Park Ridge, Illinois 2011/12 Budget)

A second goal stated in the Park Ridge, Illinois budget is the prioritization of additional capital projects upon the basis of other achievable revenues. (City of Park Ridge, Illinois 2011/12 Budget, paraphrased) Stated otherwise, plans include a goal for city streets and sidewalks staying in good repair, improvement of storm drainage, powerlines, and restoration and improvement of the tree canopy and parking. The third stated goal of the Park Ridge, Illinois budget is the investment in making providing of the tools needed to drive the "redevelopment of targeted economic development areas." (City of Park Ridge, Illinois 2011/12 Budget) All stated goals in the Park Ridge, Illinois budget are geared toward improvement and maintenance of the city for its citizens.

Policies

The policies of the city are clearly stated including the provision of services at a low cost. The adjusted budget total is stated to include: "total municipal budget, including MFT, library, and garbage service. Excluded items are stated to include Park Districts, Electric Utilities, Sanitary District, Community Development Block Grants, Bus Service, Performing Arts Centers, Airparks, Capital Projects financed from Bond Proceeds, Tax Increment Financing Districts, and Employee Retirement Contributions. (City of Park Ridge, Illinois 2011/12 Budget) Out of nine communities in Illinois, Park Ridge is stated as having the lowest in per capita spending. Specifically the cost per capita of nine communities adjacent to Park Ridge is stated at $1,758 as compared to $1,305 for Park Ridge. (City of Park Ridge, Illinois 2011/12 Budget)

Total Revenue, Total Expenditures and Budget Surplus

Included in the Budget Summary are the total revenue, total expenditure and budget surplus, which is a negative figure of $423,166. The present budget is reduced by 2.3% as compared to last year and the budget expenditure is also reduced by 1.6% as compared to last year. Four funds are stated to have a budget surplus including the general fund, the municipal water fund, the parking fund, and the sewer fund. (City of Park Ridge, Illinois 2011/12 Budget)

Five funds are stated to have a budget deficit including the library fund, the Uptown TIF fund, the IMRF fund, the emergency telephone 911 funds and the water fund. (City of Park Ridge, Illinois 2011/12 Budget) The fund balance will be utilized by the library and water funds to balance the funds budget. The budget deficit in the emergency telephone fund will be addressed through the receipt of supplement income "via an interfund transfer from the General Fund." (City of Park Ridge, Illinois 2011/12 Budget) The Uptown TIF fund budget deficit will be addressed by borrowing from the City's General Fund. (City of Park Ridge, Illinois 2011/12 Budget)

Balanced funds stated are: (1) motor fuel; (2) 2004A Debt Service; (3) 2004B Debt Service; (4) 2005A Debt Service; (5) 2006A Debt Service; and (6) 2006B Debt Service. (City of Park Ridge, Illinois 2011/12 Budget) The Source of Revenue and the Source of Expenditure for all funds is clearly stated in the budget as well as is the revenue and expenditure summary of all Park Ridge, Illinois city funds. Included is a source of revenue and expenditure for the general fund. Also stated is the source of revenue and expenditure for the library fund.

III. The Budget as an Operations Guide

The City of Park Ridge, Illinois states long-term and short-term budget goals and issues including issues relating to increases in expenses and decreases in budget income and in addition, stated are the various city departments and their goals including the Administrative Services Department with its programs including:

(1) legislative;

(2) city administration;

(3) Legal;

(4) records control;

(5) human resources;

(6) economic development;

(7) Information Services;

(8) information technology;

(9) planning;

(10) zoning;

(11) building; and (12) environmental health. (City of Park Ridge, Illinois 2011/12 Budget)

Stated for each of city administrative departments are the departmental appropriate duties and responsibilities in regards to not only budget items but also in regards to functions and processes of each administrative department. Performance measurements are also stated for each city administrative department beginning with year 2007/08 through 2011/12 estimates. Effectiveness measures for all departments are stated at 95% effectiveness. Expenditures for employee salaries in all departments and categories are listed in the budget report including the variance of the 2011/12 budget as compared to the actual 2011/12 budget.

Included in the budget report is the administration departmental listing including the fund, program description of the department object identifier and description along with the budget for the current and previous year. (City of Park Ridge, Illinois 2011/12 Budget)

Finance Department Responsibilities and Duties

The responsibilities of the finance department is the improvement of city services for external customers. (City of Park Ridge, Illinois 2011/12 Budget, paraphrased) The objectives set out for the finance department in the 2011/12 budget includes:

(1) delivery of accurate, timely water and sewer bills to customers;

(2) management of efficient, customer friendly vehicle license purchasing process;

(3) managing and tracking cultural arts sticker purchase program; and (4) reviewing additional methods for accepting customer payments (online, e-receiver, etc.). (City of Park Ridge, Illinois 2011/12 Budget)

The stated Finance Department objectives for 2011/12 are the provisions of monthly financial status reports for the City Council and Department heads published in a manner that can be easily comprehended and understood. In addition, the Finance Department is responsibility for reestablishing the Finance Department as the authority for procurement process oversights. The Finance Department is further given responsibility to review the use of credit cards, and to establish the process for the 2012/13 budgeting cycle. Also stated in the Park Ridge, Illinois city budget report are the overall accomplishments and objectives of the finance department

IV. The Budget as a Communications Device

The budget is an effective communication device as it communities the goals of the city of Park Ridge, Illinois, as well as the accomplishments. Also included are departmental specific operational and functional responsibilities as well as departmental specific goals and policy directives. The city budget includes an explanation and description of the services offered by the city to the public as well as setting out budgeting deficits and budgeting surplus information, which is also departmental specified information. The budget report clearly indicates not only where the city has been in recent years but also where the city is moving in the future. It is communicated in the budget report that the city is tightening its financial belt including layoffs of employees in order to meet the budget requirements for the year 2011/12.

V. Analysis

The Park Ridge, Illinois city budget report failed to include an organization chart for the entire organization although there were departmental specific breakdowns of sub-departmental responsibilities with appropriate coding and identifiers. All funds subject to appropriation were stated with a graphic and narrative of the city's budgetary fund structure included in the report. Every individual major fund description is included in the report along with budget surplus and budget deficit information. The basis of budgeting for all funds is described. The long-term financial policies of the city in terms of its goals is set out in the budget report and all financial policies presented in an organized and coherent manner. The process for preparation, review and adoption of the budget is described as well as is the process that is used in developing, reviewing and adopting the Park Ridge, Illinois city budget. Included in the Economic Development goals are the development of a "comprehensive long-term strategy for economic development enveloping a business friendly philosophy intended to attract and retain business in Park Ridge." (City of Park Ridge, Illinois 2011/12 Budget) It is reported that toward this end, that the city of Park Ridge, Illinois, "…reached out to the Chamber of Commerce to partner in the marketing of our retail establishments. " (City of Park Ridge, Illinois 2011/12 Budget) The Chamber established a retail committee charged with:

(1) Maximizing public sector investments;

(2) Promoting cooperation;

(3) Creating a competitive advantage; and (4) Being sustainable and profitable. (City of Park Ridge, Illinois 2011/12 Budget)

Included in the city's marketing strategies are the following:

(1) Construction of an image branding advertising campaign;

(2) Increasing visibility and improving merchandizing;

(3) Complementing newly placed wayfinding signs;

(4) Development of a marketing brochure for residents and visitors;

(5) Creation of a shop local campaign and social marketing campaign to attract shopper and diners to Park Ridge;

(6) Location of Kiosks throughout Uptown, which promotes local events and encourages local shopping. (City of Park Ridge, Illinois 2011/12 Budget)

V. Budget Grade

The grade assigned to the Park Ridge, Illinois City Budget Report has upon research and analysis of the budget report has been assigned at the 'B' level which means that this is an above average budget document meeting all Budget Analysis Criteria effectively. Recommendations include that an organization-wide chart be included in the following year budget report so as to clearly demonstrate the various tiers of the organization for budgeting review purposes.