Page 19 - Town of Bedford FY 2018-2019 Budget.pdf

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Budget: Strategies, Process, and Analysis

STRATEGIES

Preparation of the adopted FY 2018-2019 Budget was guided by the following strategies:

¾ Ensure the delivery of the public services provided by the Town through its budget policy is vital to
the quality of life of the citizen’s that we serve.
¾ Ensure the budget process is responsive to priorities and then translating those priorities into
actions.
¾ Ensure the application of revenue maximization procedures by maximizing Federal/State funding
streams.
¾ Ensure that the efficiency and productivity of the Town’s budget is a catalyst for economic growth.
¾ Ensure that the budget publication contains four main components: accountability, transparency,
predictability, and participation.
¾ Ensure the stability and operational efficiency of the Town’s fundamental infrastructure necessary
for the Towns daily operations.
¾ Ensure the financial resources for long-term, strategic growth and investment into the Town.

BUDGET FOCUS

The Annual Operating and Capital Budget process produces one of the top policy documents governing the
Town’s work plan for the year. The Mayor and Town Council’s approach displays a thoughtful
consideration of which items are most critical in achieving the Town’s goals. They undertake the
methodology of considering opportunities for redirecting existing resources to mandates and critical,
higher priority needs. The budget development process incorporates principles of zero based budgeting by
not automatically assuming that current year expenditure levels are justified but rather will systematically
review, re-prioritize and shift funding support from activities that no longer align properly with the Town’s
objective to support core service functions. The Mayor and the Town Council are responsible for
legislation, policy formulation, and overall direction setting of the local government. This includes the
approval of financial policies which establish and direct the operations of the Town of Bedford to reach
and maintain its financial potential through consistent approaches in financial management. The Town
Manager is responsible for carrying out the policy directives of the Town Council and managing the day-to-
day operations of the executive departments, including the Finance Division. Financial policies will always
be evolving; therefore, these documents are living documents representative of the goals of Town Council.
The Financial Operating Policy Manual is located in the back of this budget document.

BASIS OF ACCOUNTING

A basis of accounting is defined as the time various financial transactions are recorded. There are two
primary methods of accounting each differing on when income and expenses are recognized. The first
primary method is Cash-Basis Accounting which records revenue when cash is received from customers,
and expenses are recorded when cash is paid to vendors and employees. The second primary method is
Accrual Accounting which records revenue when earned and expenses are recorded when consumed.

The Town of Bedford manages its financial affairs, both basis of budgeting and basis of accounting, using
Generally Accepted Accounting Principles (GAAP) and maintains its accounting records on a Modified
Accrual Basis. This method is commonly used by government agencies and it combines accrual-basis

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