FY2022

the balance sheet. Under the modified accrual basis, revenue is recognized when susceptible to accrual, which is in the period in which it becomes both available (collectible within the current period or soon thereafter to be used to pay liabilities of the current period) and measurable (the amount of the transaction can be determined). Revenue accrued includes property taxes, intergovernmental revenue, and interest earned on investments (if they are collected within 60 days after the year-end). Expenditures are recorded when the related fund liability is incurred. Principal and interest on long-term debt, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. This basis differs from that used in the Annual Report for the government-wide financial statements and the proprietary fund statements. The government-wide financial statements and the proprietary fund statements are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting in the City’s Annual Report. Agency funds do not have a measurement focus and use the accrual basis of accounting. Under the accrual method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The City applies all applicable Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, except those that conflict with GASB pronouncements, in accounting and reporting for these funds. Annual Preparation Schedule The City Manager instructs the Department Directors on whether any changes in level of service can be factored into the proposed financial plan. This is done before the actual budget process starts. Changes to the financial plan are done annually during the budget process. All revenue and expenditure estimates are re-evaluated and revised if necessary. In August each year, the Finance Department meets with Department Directors and Division Heads to review and discuss their goals and performance measures. These are reviewed against the City’s long-term strategic plan and updated as necessary. The Finance Department then collects the data from each division and prepares the performance measurement results. Also in August, the City Council holds a work session to discuss their budget goals and priorities for the upcoming year. In September, forms and instructions are delivered to departments for the annual update to the Five-Year Capital Improvement Program. The status of prior year projects is reviewed as well as the long-term debt projections. Updates to projects already in the Program, requests for new projects including their cost estimate, availability of outside funding sources, operating impact, and rating score are submitted by departments. In early October, Department Directors and Division Heads are able to access their respective budget projections. They can make adjustments to their operating budget during this time. The Finance Department compiles salary projections, history of each department/division’s actual line item expenditures, and projected revenues and costs covered by the Financial Plan. (The Finance Department projects revenues individually and uses a combination of inflation factors and individual costs to project expenditures.)

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