The Budget Process

We strive to produce the most comprehensive yet understandable budget document possible. The budget builds on past successes every year and incorporates appropriate suggestions to improve its overall readability and usefulness. Our budget process is an ongoing, year-round process. It begins in October with preliminary discussions and concludes in April with budget hearings and the adoption of a budget ahead of the new fiscal year in July.

The Government Finance Officers Association has identified four general elements that constitute good budgetary practices. These four elements view the budget as a Policy Document, Financial Plan, Operations Guide, and Communications Device.

Policy Document

This is the most significant function of the budget document. In its broad context, it pertains to long-term, organization-wide policies that establish broad goals, direct how and where resources are spent, and establish a framework for providing and funding services. As a Policy Document, the budget also describes the County's short-term financial and operational policies which influence the budget development process for the upcoming year, for example: the goals and objectives of the County's departments, new programs, staffing requirements, etc. Finally, the policy function articulates the most significant choices and decisions regarding key issues, priorities, ramifications and how these have changed from the current year.

Financial Plan

As a financial planning tool, the budget provides an explanation of the County's financial structure; descriptions of its funds; summaries of major revenues and expenditures; narratives for the major revenue sources; and assumptions associated with revenue estimates and trends. The budget provides a comprehensive discussion of capital projects and their impact on the operating budget, includes financial data and narrative on current debt levels and debt limits, and addresses the potential effect of existing debt levels on the future operations of the County.

 

Operations Guide

The budget document is designed to be a readable guide to the County's varied activities and services. It is a valuable resource which includes summary tables of personnel and positions, community statistical information, measurements of performance, and other information often referred to by department directors, managers, and the citizens.

Communication Device

To be an effective communication tool, the budget must be able to clearly explain significant budgetary issues, trends, and priorities; short-term and long-term financial strategies; capital improvement plans; and significant budgetary impacts to elected officials, department heads and their staff, and to the citizens for whom they work.

 

Timeline

Step 1.October - Review strategic goals

Meetings are held with the county council, the county manager, and the department directors. The county council will review its strategic leadership plans (goals, priorities, and objectives) and adjust for the upcoming year. Departments begin to prepare strategies for maintaining current services, reducing or eliminating other services, and planning for new services. 

Step 2.December - Budget guidelines

Detailed budget guidelines are produced by the Finance/Budget team and are distributed to each county department. The county manager will then meet with each department director to discuss the guidelines as well as the council and county manager goals for the upcoming year. Preliminary department budgets are developed.

Step 3.January - February - Strategic Leadership Plan

Council will finalize and adopt a strategic plan. County manager's office, Finance/Budget team and department directors meet to review proposed budget and budget options.  

Step 4.March - Publish proposed budget

The county manager's office and the Finance/Budget team will finalize proposed budget. The proposed budget and a citizen guide are published ahead of budget hearings and will be uploaded to the Reports and Budget page, and made available at the Mesa and White Rock Public Libraries, and at the Customer Care Center.

Step 5.April - Hearings and adoption

The County Council will hold budget hearings and adopt the annual operating budget and capital improvement program.  

Step 6.July - New fiscal year

The new fiscal year begins under the new adopted budget.

Roles

County Manager

  • Discuss proposed operating and capital budget priorities, budget schedules and guidelines with the Management Team.
  • Brief the Council on the budget process, proposed financial policies, and budget guidelines.
  • Hold budget meetings to review departments' budget requests. Review budget requests, make budget decisions, and prepare budget message.
  • Submit the proposed budget to the Council.

Departments

  • Submit to the County Manager the department's budget requests, goals, and objectives for the new fiscal year, and accomplishments during the current fiscal year.
  • Meet with the County Manager to review department's budget submittal.
  • Participate in Council budget hearings to justify department's budget request.
  • Implement and monitor the adopted budget for the department and funds.

Finance/Budget Team

  • Review previous year's budget process, and identify improvements to both manual and automated procedures.
  • Develop proposed budget guidelines and calendar for the new fiscal year.
  • Participate in Management Team discussion of budget issues, concerns, and procedural changes.
  • Review current year financial performance, and develop financial forecasts.
  • Issue budget guidelines and interdepartmental charge (IDC) guidelines and rates approved by the County Manager to departments and outside agencies.

County Council

  • Establish County goals for coming year, and meet with County Manager regarding proposed budget guidelines, financial policies, and budget schedule.
  • Review County Manager's proposed budget and capital improvement
  • Hold public hearings and adopt the annual operating budget and capital improvement program.

All budgets for the Incorporated County of Los Alamos are adopted consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for all County funds except agency and pension trust funds. All annual operating appropriations lapse at fiscal year-end unless specifically approved by the County Council to carry over to the next fiscal year. In contrast, project-length financial plans are adopted for all capital project funds, and unexpended appropriations automatically carry over to the next fiscal year.

Fund Types

The County uses funds and account groups to report on its financial position and operating results. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain County functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.

Governmental Funds

Governmental funds account for all or most of a government's general activities, including the collection and disbursement of earmarked moneys (special revenue funds), the acquisition or construction of general fixed assets (capital projects funds), and the servicing of general long-term debt (debt service funds). The General Fund is used to account for all activities of the general government not accounted for in some other fund.

Proprietary Funds

Proprietary funds account for activities similar to those found in the private sector, where net income determination is necessary for sound financial management. Goods or services from such activities can be provided either to outside parties (enterprise funds) or to other departments or agencies primarily within the government (internal service funds).

Fiduciary Funds

Fiduciary funds are used to account for assets held in a trustee or agency capacity for others and therefore cannot be used to support the government's own programs. A pension trust fund is used to report resources that are required to be held in trust for the members and beneficiaries of the County's defined contribution plan (Los Alamos County Employee Pension Plan). An agency fund is used to account for situations where the County's role is purely custodial, such as the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.

 

 

 

Contact Us

Phone

505.662.8244

Email

Erika.Thomas@lacnm.us

Location

Municipal Building
1000 Central Ave. Suite 300
Los Alamos,NM
87544
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Budget Reports

View past budget reports on our Financial Reports and Budgets.

 

 

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