Budget Overview

•              Incorporates a long-term perspective
•              Establishes linkages to broad goals
•              Focuses budgeting decisions on results and outcomes
•              Involves and promotes effective communication with stakeholders
•              Provides incentives to government management and employees 

These key characteristics of good budgeting make clear that the budget process is not simply an exercise in balancing revenues and expenditures one year at a time, but is strategic in nature, encompassing a multi-year financial and operating plan that allocates resources on the basis of identified goals. A good budget process moves beyond the traditional concept of line-item expenditure control, providing incentives and flexibility to managers that can lead to improved program efficiency and effectiveness.  The mission of the budget process is to help decision makers make informed choices about the provision of services and capital assets and to promote stakeholder participation in the process. Communication and involvement with citizens and other stakeholders is stressed. Communication and involvement are essential components of every aspect of the budget process. 

The City of Livingston is continuing its Performance Budgeting approach for the development of its annual operating budget.  Performance budgets emphasize the accomplishment of program objectives as opposed to a description of what is going to be purchased by the government.  Performance budgeting involves a shift away from a debate by the City Commissioners of what is going to be purchased toward a debate regarding what is going to be accomplished.  The City of Livingston is in its second year of its Performance Budgeting efforts.  Each department has identified performance objectives, identified and tracked workload indicators, and has established quantifiable performance measurers. 

Capital Improvement Plan 

The City of Livingston has a Capital Improvement Plan (CIP) document separate and apart from the Annual Operating Budget.  Unlike the Annual Operating Budget, the CIP is a multi-year capital improvements plan that forecasts, but does not obligate, future spending for all anticipated capital projects.  The multi-year, long-range fiscal analysis also provides an opportunity to review the operating impact of growth-related future capital projects. 

Budget Award

The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Livingston for its annual budget for the fiscal years beginning July 1, 2009 - June 30, 2010 and July 1, 2010 - June 30, 2011.  In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as communication device.  The award is valid for a period of one year only.  This is the first year that the City of Livingston has been honored.  We believe our current budget continues to conform to program requirements, and will submit it to the GFOA to determine its eligibility for the prestigious recognition.