Budget of a City - Village of Niles - Research Paper Example

?Budget of a OVERVIEW A government budget is usually considered to be a plan or a blueprint which s the total expenditure that is to be made to fulfill an established goal. It is often passed by the parliament, sanctioned by the president and presented by the finance minister of a nation to the civilians. Fiscal policy of government is ascertained to be the spending of government collection to influence the economy (Edge, “Fiscal Policy and Budget Outcomes”). The fiscal year (FY) budget for the selected government i.e. Village of Niles budget is prepared under the supervision of the Village Manager and the Financial Director of the village. Each department head articulates their own segment of the budget and presents it to the Village Manager and the Financial Director and consequently funds are allocated in accordance with the evaluations made. The estimations made are then finalized and presented to the Finance Committee and Village Board for review and direction which is then adopted by the Mayor and Board of Trustees (The Village of Niles 1-20). THESIS STATEMENT This paper intends to conduct a descriptive study of the budget prepared for the Village of Niles for the FY 2014.The paper would also provide a detailed study of the different priorities of the budget plan along with the sources of funding for the entity and their strengths and weaknesses. Furthermore, an explanation of the different segments where the money would be spent would also be provided in the paper. Different ways in which the local government could handle an economic recession would also be ascertained. DISCUSSION Explanation of the Priorities of the Budget Plan. It is considered that every budget plan is prepared with a prime motive. Fiscal budget is essentially prepared to support a number of imperative facets of a nation that require adequate assistances. With reference to the FY budget 2014 of Village of Niles, a few of the priorities that have been stated are listed hereunder: Community Development The community development department is essentially associated with issuing building permits, providing inspectional services within the village and keeping a track of the business and rental licensing within the village. Moreover, the department is also associated with property maintenance inspection within the village. It is worth mentioning that since 2013 the department has also undertaken the responsibility of the Fire Prevention Bureau and economic development marketing of the village. The major reason behind selecting the community development department as one of the priorities for the FY budget 2014 is to develop the village zoning code in order to meet the growing need of the community, develop short term and long term goals with an aim to develop the economic condition of the village and also to market the village in the national level. The budget also aims to develop the information technology (IT) software associated with the licensing, maintenance and health division within the village for better efficiency that would facilitate to provide more quality services to the public. The budget allotted for the department also covers vital facets such as amended language for Chapter 46, Fire Prevention. It has not been addressed by the government. The budget also aims at inspecting 1300 business within the village (The Village of Niles 28-35). General Government Department The General Government Department is concerned with two primary objectives i.e. to provide high quality service to the villagers and to maximize the efficiency of village service delivery through the use of cost efficiencies. The vital reason behind selecting the department as the other priority for the FY budget 2014 is to establish a coordinated relation amid the elected officials and the staff of the different departments within the village. The budget allotted for the department also aims to update the emergency operation center plan, the department also plans to collaborate with the Niles Park District Plan for conducting successful parade and post parade activities within the village as it is ascertained to be a vital part of promoting the cultural aspect of the village. The budget allocated also plans to support different Environmental Practices Committee associated with the Environmental Action Plan. Additionally, the budget also aims to restructure the quarterly newsletter of the village along with establishing department level studies and improving the After School Programs at the Niles Teen Center. It is also worth mentioning that the budget aims to monitor and to improve the Storm Water Relief Plan and other plans related to safeguard the civilians from other natural calamities (The Village of Niles 79-86). Public Services Department The Public Service Department of Niles mainly focuses on providing high quality public work service to the civilians and other village departments. The major reason behind selecting the department as one of the priorities in the budget for the FY 2014 is that it aims to remove the trees that are infected with the emerald ash borer which is considered to be a form of beetle dangerous for the tress. The budget also endeavors at improving the forestry, streetlight and streets of the village through the Public Service Department. Encouraging people to participate in professional development programs in order to increase the employment rate amid the civilians is also a key priority of the budget. The budget intends to replace old equipment with new technology to reduce labor cost. Additionally, the budget intends to expand anti-icing treatment options for snow and ice removal as it is considered to be a vital factor within the village especially during the winter days, affecting the normal life of the civilians (The Village of Niles 79-86). Sources of Funds for the Entity. The different sources of funding for the entity are listed hereunder: Revenue is considered to be the income earned. In this aspect, a majority of the funds has been observed to be coming from sales tax received from all the businesses established in the village. It has also been measured that the general budget of the village would increase quarterly as the amount proposed for the Water Fund in the FY 2012 was lower than the allotted sum. Insurance collected from retired personnel within the village is also measured to contribute a proportion of the budget for the FY 2014. Alternatively, village insurance program contributes an adequate amount. Funds from the federal budget that would be allotted for the betterment of the village would act as a lifeline for the budget. Miscellaneous smaller revenues collected from the civilians are also measured to contribute to the budget. Property tax is measured to contribute 8% of the total revenue for the fund that is to be allocated. State income tax contributes around 6% of the fund. Moreover, sources such as telecommunication, food and beverage tax and changes in existing sources of income contribute around 9% of the fund for the budget. With reference to the stated amount of revenue earned from the different sources, it can be stated that the sources hold up a majority of the total funds that is to be allotted for the FY 2014 and can be treated as appropriate sources for the coming years (The Village of Niles 3-6). For every amount implemented in a budget plan, it is very essential that the amount is being spend accordingly as it would help in completing the aims of the plan efficiently. In this regard, it has been viewed that the total expenditure of the FY 2014 budget are US$80.4 million in expense and US$71.9 million in revenue. It is estimated that of the total amount, US$2.3 million would be invested to cover the deficit fund balance. In the general government section, US$2,417, 567 has been allotted out of which US$149,000 is for the Niles Television Communications Department which has been recently created by the government for the marketing of the region. In the community development section, US$2,042,935 has been allotted for the FY 2014. In this context, a part of the amount would be utilized for increasing annual salary for the village planner and financial development of the village. The budget of the public services department is measured to augment to US$7,679,529 for 2014 from US$6,323,923 estimated for 2013. US$600,000 of the total amount has been sanctioned for capital improvement along with developing streets and signs within the village (Gruen, “Niles Balances Budget — Almost”). Handling an Economic Recession. Recession is determined to be a noteworthy failure in financial activity including decline in the gross domestic product (GDP) growth. It is very essential that every government implements steps that would stop the decline in the economic activities within the country as it would decrease the monetary value of the country. With reference to the Village of Niles, the government can implement the following measures to handle an economic recession. A few of them are depicted hereunder: 1. Investing in stocks of reputed companies during recession is considered to be the safest option during recession as these companies are ascertained to have resources to handle lengthy periods of paleness in the market. 2. Investing in commodities is also considered to be another good option during recession as the prices of these resources generally rise during the recessionary period, providing high returns on the investment made (Clark, “Recession, Recovery And Reinvestment: The Role Of Local Economic Leadership In Global Crisis"). Works Cited Clark, Greg. Recession, Recovery and Reinvestment: the role of local economic leadership in global crisis, n.d. Web. 04 Dec. 2013. Edge, Ken. Fiscal Policy and Budget Outcomes. n.d. Web. 04 Dec. 2013. Gruen, Tracy. Niles balances budget — almost. 2013. Web. 04 Dec. 2013. The Village of Niles. “Fiscal Year 2014 Budget.” State of Illinois-Incorporated 1899 (2013): 1-271. Print. Read More