The budget has been structured and prepared using the guidelines of the Governmental Finance Officers Association (GFOA). Two sources, Governmental Accounting, Auditing and Financial Reporting (GAAFR) and the Governmental Accounting Standards Board (GASB) guide the financial reporting and annual budget process. The Town of Frederick prepares its budget on a calendar year basis as required by state statute. The budget must be balanced or show a revenue surplus. "Balanced budget" is defined as "a balance between total estimated expenditures and total anticipated revenues, including surpluses." This means that the appropriated expenditures cannot exceed the sum of the revenues and beginning fund balance. The Town of Frederick's definition of a "Balanced Budget" does comply with the statutory requirements for the State of Colorado located in C.R.S. 29-1-103 (2).
The budget preparation process begins in the spring of each year at the Town Board goal setting sessions. During the goal setting sessions the Town Board establishes goals and objectives for the upcoming year and provides direction to the Town Manager for future budgets.
In May, the Finance Director prepares core data, including salary information, health insurance information, worker's compensation information, general insurance and other allocated costs. This data is presented with the current period data and revenue projections for both the current year as well as the upcoming year. The worksheets containing this data are distributed in June to departments along with the Capital Improvement Plan worksheets, Capital Request Forms, Employee Education Request Forms, and budget instructions.
Departments review Board goals and objectives and then meet internally to develop their budget requests. Each department must have their budget requests, along with other budget related forms, submitted by the first week of July to the Finance department and the Town Manager. The Finance department compiles the documents and prepares them for the individual budget meetings between the Town Manager and the departments. The meeting usually take place early in the month of August. Upon conclusion of the meetings, decisions are made about what will be included in the Proposed Budget. The Proposed Budget is submitted to the Town Board no later than October 15th with work sessions as requested and determined necessary by the Board following the submittal.
The Town Manager's proposed budget is a matter of public record and is open to the public for inspection. At a minimum, one public hearing is held on the proposed budget. Appropriate notice of the time and place of the hearing is placed in a newspaper of general circulation.
Adoption of the Budget and Appropriation of Funds
In accordance with state statutes, on or before the fifteenth (15th) day of December, the Town Board shall adopt a balanced budget for the ensuing year. The Board appropriates sums of money, as it deems necessary, to defray all expenditures.