Budget Analysis for the City of Lakeland: Executive Summary In order to understand how a new performance-based budgeting process could be utilized by the City of Lakeland, it is essentially to conduct a review of the City's Annual Budget, with a detailed description of how the budgeting process works from beginning to end.

Lakeland's budgeting process is divided up into parts, with each part being designated a specific amount of time (in terms of a calendar month) in which it is to receive attention. The tasks associated with the budgetary process are thus sequential and proceed in an orderly manner; once the first steps are taken and accomplished, the next steps may be conducted.

Steps According to Monthly Division

The first steps begin in the month of February. The Revenues Manual supplied by the City is utilized to understand and predict the City's revenue and revenue sources, using a systematized method of documentation that serves as the basis for framing and guiding the decisions that must be made when deriving the budget. The Manual gives receipts plus indicates what variables impact the revenue cycle, and how taxes, special assessments, franchises, intergovernmental revenue, interest, and service charges factor in as potential revenue categories.

During this same month, the City submits a list of projects with attendant costs (derived from estimates given by associated departments). Thus, the Manual is reviewed and new costs for the year for any new projects are tallied.

The month of March proceeds with the next two steps in the process: first, use of the financial trend monitoring system; second, budget system training. In the first step of this month, pivotal financial and economic predictors and indicators are used to gauge the City's economic condition. The City's financial health is told by ratios, in other words, that provide a basis for comparison of the City to other cities across the nation as well as to other service organizations. Items that are compared in this step include debt structure, liabilities, operating cash flow, revenues/expenditures, resources, and community. Comparing the City's status with regard to these items to the status of other cities provides...

The second step for this month is to provide training for new members of the budgeting staff.
April and May serve as a three-in-two part of the process, with three steps being planned between the two months. First, the results of the City's Core Services are given a final revision made; part of this step includes discussing how the revision will affect the new cycle going forward. Second, the capital improvement plan (CIP) is revised according to the project requests made in the month of February and the analyses conducted in the month prior. Third, the goals of the coming cycle are assessed and used to make adjustments if necessary to the Core Service ranking and grading conducted so as to give projects a set priority over the course of the year.

In June, the City begins its budget kickoff: a business plan package is reviewed along with staffing needs, operating budget and CIP. At this point a directional strategy is developed and instructions for preparing the budget's resource development, with regard to the needs of the business plan. Because some time has passed since the last submission of capital projects, new submissions are taken along with the associated costs derived from priorities and actionable items.

July's steps consist of an administrative review of each department's operational budget. Important in this step is having a detailed list of the various staffing structures, line items, and performance measures that will be used by the departments, along with a table of organizations with which they will be associated. The City Manager will at this point make a tentative determination about the proposed budget. During this month, the City Manager and Finance Department submit a final recommendation for a CIP for the year.

August begins with a legislative review of the recommended budget from the prior month. Fund summaries, consisting of a revenue/expenditure balance sheet, are submitted along with the various projects from the City's departments. These should include operating/performance budgets. A tentative budget is then prepared and provided both to the City Commission as well as to…