Budget Preperation

[Engine4C]

I recently became the Chief of a small part time department. We are funded through city income taxes. The old chief always prepared the budget and because of the circumstances in which he was replaced he is not being very cooperative with the preperation of the FY2006 budget. My question is how do you figure in increases for wages, fuel, utilities and equipment. Some of the items are pretty easy such as dispatching, gas and electric. If any one has a sysstem that they use and could let my know I would be very grateful.

[KenNFD1219]

I check with vendors for upcoming price increases, many know months ahead of time that an across the board increase is in the works. Fuel is tough, no idea how high it will go. Figure average annual use times todays price plus whatever percent increase you feel is reasonable (I know, no increase is reasonable). My town budgets for wage increases based on 1 or 2 percent over cost of living. Look at what your department has requested over the past few years and compare it to what was actualy spent. Are some line items too high and others too low?

Resist the temptation to apply a set percentage across the entire budget. Not everything will have the same percent increase and it makes it look like you are just padding the numbers.

Budget preparation is not easy. Our town budget goes to a public hearing. At a recent hearing, one taxpayer chastised the finance board because the anticipated interest on accounts listed in the bugdet was less than he felt the town could earn. The very next speaker criticized the board because he 'knew' the town would never get an interest rate as high as what was budgeted. Turns out the board had the right amount in there.