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 evenues 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…...
mlaReferences
City of Lakeland, Florida. (2016). Fiscal Year 2016 Annual Budget.
Breakeven Analysis
Sony Flexible Budget Analysis
Sony is a company that has long dominated the electronics market. However, in recent years, it has seemed to loose its primary grip over the market. Still, examining the financials of 2013, one can see that there have been new advancements in growth, especially in regards to net income, operating income, and financial and mobile sales revenues.
After several years of disappointing sales, Sony has seen some recent growth streams. Sales and operating revenue is up from the past two years by 4.7% (Sony, 2013). Additionally, net income is also up since 2012. There have also been increases in the sales of financial services and mobile devices over the past year (Sony, 2013). This has helped increase the overall operating revenue and net income overall, which was desperately needed by Sony after several years of the company loosing its grip on the marketplace. Numbers seen from March…...
mlaReferences
Accounting Tools. (2014). Flexible budget. Budgeting: A comprehensive guide. Web. http://www.accountingtools.com/flexible-budget
Sony (2013). Annual Report. Web. http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf
However, the effects of the winter improved sales figures for home improvement companies that sell shovels, rock salt, and snow-blowers. A retail company must anticipate sales orders and profits based on data from past years, but the organization may be faced with a warm winter after stocking the shelves with mittens or be faced with unexpectedly high sales figures if it unexpectedly manufactures the 'hot toy' of the upcoming Christmas season. Flexible budgeting takes into consideration such circumstances.
Ethics
While flexible budgeting can offer a more realistic portrayal of how an organization functions, it can also be problematic in the manner it offers opportunities for 'creative accounting.' The organization must make a good-faith effort to present an accurate portrait of market circumstances for all stakeholders, and not use the option of flexibility to make a more optimistic portrayal of the company's relative financial health. This is why an ethical code is…...
mlaReferences
Flexible budget. (2010). Accounting Coach. eHow. Retrieved June 28, 2010 at http://blog.accountingcoach.com/flexible-budget/
Hewitt, John. (2010). About flex budgeting in accounting. eHow. Retrieved June 28, 2010 at http://www.ehow.com/about_4602275_flex-budgeting-accounting.html#ixzz0s6Yf7wVA
The Property Taxes revenues' evolution is: for 2001-2002: $33,583,659; for 2002-2003: $39,474,865; for 2003-2004: $43,631,829; for 2004-2005: $56,254,917; for 2005-2006: $61,055,240; the proposed revenue for 2006-2007 is $67,102,454, with a 9.9% increase.
The Licenses and Permits revenues' evolution is: for 2001-2002: $1,956,365; for 2002-2003: $2,305,118; for 2003-2004: $3,483,020; for 2004-2005: $3,061,667; for 2005-2006: $3,027,345; the proposed revenue for 2006-2007 is $2,819,900 with a 6.85% decrease.
The Intergovernmental revenues' evolution is: for 2001-2002: $7,253,139; for 2002-2003: $6,035,742; for 2003-2004: $6,014,233; for 2004-2005: $4,266,673; for 2005-2006: $3,965,291; the proposed revenue level for 2006-2007 is 2,488,100 with a 37.25% decrease.
The Charges for current services revues' evolution is: for 2001-2002: $10,318,366; for 2002-2003: $11,099,872; for 2003-2004: $11,899,279; for 2004-2005: $13,063,134; for 2005-2006: $12,601,949; the proposed revenue level for 2006-2007 is $13,211,561 with a 4.84% increase.
The Fines, Forfeitures and Penalties revenues' evolution is: for 2001-2002: $3,252,387; for 2002-2003: $3,380,531; for 2003-2004: $3,551,515; for 2004-2005: $3,422,735; for 2005-2006:…...
mlaReference List
Profile of General Demographic Characteristics: 2000. U.S. Bureau of Census, Census 2000. Retrieved February 4, 2007 at http://www.city.newport-beach.ca.us/PLN/demo_main.htm .
Profile of Selected Social Characteristics: 2000. U.S. Bureau of the Census, Census 2000. Retrieved February 4, 2007 at
Special Education Budget Analysis
Special education directors/leaders must sufficiently understand the budgeting process in order to be able to explain why specific numbers have been entered in a budget. To gain some additional understanding in this area, this paper reviews the relevant literature to examine specific line items to determine the theories, legislations, and/or laws that require special educational directors/leaders to spend a certain amount of money. A discussion concerning the discussing the research-based reasoning behind selected line items of a school district budget is followed by an evaluation of those line items that are not aligned with research-based reasoning. Finally, a discussion concerning what can be done to align the items with research and legislation that meets the federal mandates for fiscal management is followed by a summary of the research and important findings concerning the special education budget process in the conclusion.
eview and Analysis
A summary of legislation, laws, and…...
mlaReferences
Allowable and unallowable expenses. (2016). sNew York Department of Education. Retrieved from / expensesiii.html.http://www.p12.nysed.gov/accountability/consolidatedappupdate/allowunallowable
Augustine, C. H. & McCombs, J. S. (2013). Getting to work on summer learning: Recommended practices for success. Santa Monica, CA: Rand.
Beatty, M. L. (2013, Spring). Not a bad idea: The increasing need to clarify free appropriate public education provisions under the Individuals with Disabilities Education Act. Suffolk University Law Review, 46(2), 529-533.
Davis, B. (2016). Special Education Programs, Title VI-B Funds. Arkansas Department of Education. Retrieved from http://arkedu.state.ar.us/commemos/static/fy0405/2180.html .
Budgetary concerns have become a major issue for legislative bodies around the world. COVID- has exacerbated many of these concerns as states must now contend with lower revenue projections coupled with higher cash expenditures. School budgets are not immune to this occurrence and in fact, suffer more so because of it, as will be detailed below. The current New York school district budget is $168,142,155 which is an increase of roughly 2.37% from last year. The budget increase is in line with historical inflation projects of 2% (although inflation projections have changed in recent months due to supply chain disruptions internationally). The budget is supported primarily with tax levies and state aid. The budget itself is comprised of three components with include Administrative, Instructional Programs, and Capital (Abernethy, 1999). Administrative capital is heavily related to teachers, and their corresponding salaries and benefits. It also includes other workers such a grounds…...
mlaReferences 1. Abernethy, M. A. and P. Brownell. 1999. The role of budgets in organizations facing strategic change: An exploratory study. Accounting, Organizations and Society 24(3): 189-2042. Andersen, A. V. 1983. Budgeting For Schools. National Association of Accountants.3. Aranya, N. 1990. Budget instrumentality, participation and organizational effectiveness. Journal of Management Accounting Research (2): 67-774. Fakharzadeh, T. (2016), “Budgeting and Accounting in OECD Education Systems: A Literature Review”, OECD Education Working Papers, No. 128, OECD Publishing, Paris, 10.1787/5jm3xgsz03kh-en5. Jackson, C. K., Johnson, R. C., & Persico, C. (2015). The effects of school spending on educational and economic outcomes: Evidence from school finance reforms. The Quarterly Journal of Economics, 131(1), 157-218. http://dx.doi.org/
Time Series Analysis1Time series analysis is a statistical technique that is used to study data points that are spaced at regular intervals. This type of analysis can be used to examine trends over time, such as budget shortfalls or surpluses. Time series data can also be used to make predictions about future budget deficits or surpluses. When analyzing time series data, economists often use trend projections and regression analysis. Trend projections are used to identify the long-term direction of the data, while regression analysis is used to understand the relationships between different variables. By using time series analysis, economists can gain a better understanding of state budgets and how they change over time.Time series analysis is thus a powerful tool that can be used to assess a wide range of phenomena in the public sphere. By tracking changes in variables over time, policy-makers can identify trends and assess the effectiveness…...
mlaReferences
Jones, B. D., Baumgartner, F. R., Breunig, C., Wlezien, C., Soroka, S., Foucault, M., ... &
Walgrave, S. (2009). A general empirical law of public budgets: A comparative analysis. American Journal of Political Science, 53(4), 855-873.
Klase, K. A., & Dougherty, M. J. (2008). The impact of performance budgeting on state
5. What are the top 3 in monetary costs for capital improvement projects recommended for the ensuing fiscal year?
The top 3 costs for Special Warrant Articles for the upcoming budget are: The GMS site de-watering study (including design and cost) at $86,000, GMS/LMS safety locks and video surveillance at $56,431 and finally LMS Emergency Access Road at $44,000.
6. Excluding food service sales what are the top 3 revenue budget lines for the year 05/06?
The top three revenue line for the school year were: Federal Program Grant at $239,042, State School Building Aid at $238,392.16 and revenue from Other Local Sources at $165,049.
7. What is the total dollar amount for appropriations recommended by the School Board?
The total amount recommended by the School Board for the upcoming year is $19,514,314. This includes the $259,854 appropriated to Special Warrant Articles as well as the $19,254,460 appropriated for all School and Administrative Services and…...
Hay Taxi should replace the new vehicles after five years. This decision comes about after a capital budgeting analysis that illustrates the different possible scenarios for replacing the vehicles. A net present value calculation was done for each scenario to determine which scenario delivered the highest total net present value over the next six years for the Hay Taxi company. There is little difference between replacing the vehicles after year six, but year five yields a slightly better net present value. It is not recommended that the vehicles are replaced any earlier than this.
The heart of the methodology is the net present value analysis. The net present value calculation takes into account all of the incremental cash flows to this decision. The cash flows in question are the cost of the vehicles, their salvage value, the cost of replacing the batteries should the cars be kept long enough to warrant…...
INTODUCTIONFinancial management is one of the most important and complex responsibilities that governments must face today. With pressure to maintain fiscal health and sustainability, governments have to carefully balance the need for revenue with spending on essential programs and services. This can be a daunting task, as there is often limited room for error. One misstep can have serious implications for the financial stability of a government. To successfully manage their finances, governments must have a clear understanding of their income and expenditure, as well as their long-term financial goals. They must also be able to make tough decisions about where to allocate scarce resources. Given the importance of financial management, it is essential that governments have skilled and experienced professionals in charge of this critical responsibility.Long-range assessments of financial condition are an important tool for financial planning. They can help individuals and businesses to set realistic goals, identify potential…...
mlaReferencesCerovic, M. S., Gerling, M. K., Hodge, A., & Medas, P. (2018). Predicting fiscal crises. International Monetary Fund.Hudson, B., Hunter, D., & Peckham, S. (2019). Policy failure and the policy-implementation gap: can policy support programs help?. Policy design and practice, 2(1), 1-14.Joyce, P. G. (2005). Federal budgeting after September 11th: A whole new ballgame, or is it déjà vu all over again?. Public Budgeting & Finance, 25(1), 15-31.Koniagina, M. N. (2020, September). Forecast of budget revenues from taxes in the context of economy digitalization. In IOP Conference Series: Materials Science and Engineering (Vol. 940, No. 1, p. 012040). IOP Publishing.Phaup, M. (2019). Budgeting for mandatory spending: Prologue to reform. Public Budgeting & Finance, 39(1), 24-44.Vadiee, A., & Garland, T. (2018). The federal government’s “other transaction” authority. Thomson Reuters Briefing Papers–Second Series, 18(5), 1-18.
Operating expenses include selling and administrative expense. Ordinarily, a forecast or budget for selling expenses is prepared together with the sales budget or profit target because selling efforts such as promotions, commissions and salaries of the sales staff are directly related to sales. Selling expenses may either be variable or fixed. Administrative expenses include projected administrative costs for other than production or selling activities. These expenses are mostly composed of fixed costs such as research and development, insurance payments and government taxes.
3. Calculate expected profits
Profit is the excess of revenue over total costs and expenses incurred in generating such revenue during the period of operation. Profit can be expressed in the mathematical equation:
Profit = Sales - Total Costs and Expenses]
Costs having been considered, the budgeted profit plan may now be established. Injecting the concept of 'revenue less expenses equals profit,' the profit may be calculated as follows:
Budgeted Sales
Less: Direct/Product/Manufacturing Costs
Add:…...
Decreasing purchases of the items that regularly expire, assuming that such a decrease does not dramatically increase the per-unit cost of each of these items, would definitely present a cost savings to the organization. The other major costs that the organization has some (though not total) control over are the lost balls and the cost of trainers; it is likely that a move to hiring permanent trainers would be more cost-effective than hiring them on an as-needed basis, but more regular participation levels will need to be established for this to be effective. Likewise, it is possible for the organization to reduce lost equipment costs by erecting a temporary barrier to contain wildly hit balls, but the cost of the barrier would need to be fairly low and its durability fairly high to justify this.
6)a. Sales price variance = (25x40000) -- (25x39200) = 20000
Sales volume variance = (20x40000) --…...
We do not anticipate success is securing a non-voted debt issue. Given the time frame for the completion of the Commons project, the city will weigh our request vs. The upcoming needs for school repairs and roadwork. Education is a touchstone issue for voters, and roadwork affects all voters in the city. hould council decide to issue any of their remaining non-voted debt capacity, it is unlikely they would choose to use it for the Commons project ahead of those two other priorities.
Voted debt, however, they can issue. If the public votes 60% in favor, council will not face the same concerns about opportunity cost. We will not be competing for money with schools. A voter-approved special levy would function in much the same way (financed through property tax increases) but requires only a 50% vote in favor. Although the capacity for such special levies is only $90 million, that…...
mlaSources:
Johnson, Gerry. (2005). New Life Emerges in the Wake of Seattle Commons Failure. Seattle Post-Intelligencer. Retrieved June 20, 2008 at http://seattlepi.nwsource.com/opinion/272622_focus04.html
Jacobson, Arthur Lee. (1995). The Seattle Commons, an Editorial Opinion. Olmsted Parks. Retrieved June 21, 2008 at http://www.arthurleej.com/a-commons.html
No author. (1995). The Commons: Time Line. Seattle Times. Retrieved June 21, 2008 at http://community.seattletimes.nwsource.com/archive/?date=19950911&slug=2141092
History of Washington State votes at http://www.historylink.org/essays/output.cfm?file_id=7536
This contribution to fixed costs is the same for every customer. Thus, the breakeven point is 250,000 / 500 = 500 customers.
In another example, if the price is 200 and the variable costs are 110, and the fixed costs are 100,000, then the breakeven point is 1112 customers. The breakeven point is always rounded up because to have less than that the company would not yet have broken even. By rounding up, the company has officially passed the breakeven point.
4. The relative value scales are 150, 300, 568.75, 264 and 160 for a total of 1442.75
The relative value scales indicate how much effort goes into each type of acuity. The cost per RVU is relative to the total nursing costs, so it is a weighted-average:
$36,389 for Acuity Level 1
$72,777 for Acuity Level 2
$137,974 for Acuity Level 3
$64,044 for Acuity Level 4
$38,814 for Acuity Level 5
If the relative value scales…...
The departmental and program breakdown of the information in the city of Detroit's budget does not provide quite the same level of detail or of annual change that the city of Austin's budget does, but this more than made up for by the ease of accessing what details are available, and by the different formats of the two cities' budgets almost necessitate these differences in clarity, but they do not entirely account for the lack of clarity in the city of Austin's budget. That budget is already organized by department and broken down into the individual programs; tabulating the department totals and providing a clear overview of the major expenditure and revenue items on the budget would not have entailed any undue extra effort. The city of Detroit's budget clearly shows that both detail and overall clarity are entirely achievable in a municipal budget, making it both more effective…...
mlaReferences
Lee, R.; Johnson, R. And Joyce, P. (2008). Public budgeting systems. Sudbury, MA: Jones & Bartlett.
Stenberg, C. (2007). Managing local government services: a practical guide. Washington. D.C.: ICMA.
I. Introduction
II. Body
Local Government Fiscal Management in the News: Essay Subject Ideas
1. The Impact of Economic Downturns on Local Government Revenues
Amidst the recent economic recession, many local governments have faced unprecedented revenue shortfalls. Explore the specific challenges and consequences they have encountered, analyzing the impact on essential services and long-term financial sustainability.
2. Balancing Citizen Demands with Limited Resources
Local governments must navigate the delicate task of meeting citizen needs while operating within constrained budgets. Examine the trade-offs involved in allocating funds to different priorities, such as infrastructure maintenance, public safety, and education. Discuss the complexities of balancing taxpayer expectations with fiscal responsibility.
3. Innovative....
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