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Budget Basics 6. The Budget is Set Annually • At the end of the fiscal year, any unused appropriation (authority to spend) lapses and the new year’s budget (plan for spending) kicks in • When a department doesn’t spend all the money they are authorized to spend in that year, they don’t lose the money (the money is still in the Town’s bank account), they may just lose the authority to spend that money if it is re-allocated differently in the upcoming budget • At year-end, all unspent money rolls to Fund Balance which can then be used as a financing source in the following year, or saved for future projects 7. Multiyear Planning • Allows decision makers to set long-term priorities and work towards goals rather than making choices based only on the needs and politics of the moment Multiyear Financial Plan Multiyear Capital Plan Projects revenues and expenditures Identifies all capital and major for several years into the future. equipment needs, prioritizes Illustrates potential future results of projects, and includes maintenance current decisions cycle to sustain current capital assets 5