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10/14/2026 Budget Basics 1. Every local government in New York State is required to adopt a budget for all major operating funds it maintains. Garbage & General Highway Fire Ambulance Lighting Water Refuse Town of Boston, 2. The budget is comprised of two major parts: New York Budgeted Revenues The financing Sources expected to Appropriations The legally authorized limits for be used to finance operations using the estimated revenues during a single fiscal year 2027 Tentative Budget Presentation “Money In” “Money Out” & Ongoing Project Discussion 3. What is the budget? A plan of services to be provided to the taxpayers AND the funding sources to pay for the services Future Future Upcoming Year Known Events Unforeseen Events Fund Balance (Reserves) (Contingencies) Prepared by Ellie Pericak, Budget Director October 14, 2026 2 1 2 Budget Basics Budget Basics 4. The Budget is a “Living Document” 6. The Budget is Set Annually • At the end of the fiscal year, any unused appropriation (authority to spend) lapses Original Budget • Adopted Annually by November 20th and the new year’s budget (plan for spending) kicks in • Any point in the year Budget Amendments • When a department doesn’t spend all the money they are authorized to spend in • Changing the budget for unplanned events during the year + that year, they don’t lose the money (the money is still in the Town’s bank account), Budget Transfers • Ex. Grant $ received, a new Capital Project is started, a planned project costs less than expected and extra money is re-allocated, etc. they may just lose the authority to spend that money if it is re-allocated differently in the upcoming budget 5. The Budget is a PLAN Although shown in terms of money ($), no actual money has been, • At year-end, all unspent money rolls to Fund Balance which can then be used as a spent, moved, or “set aside” for the authorized purposes. financing source in the following year, or saved for future projects All money remains in the bank accounts of the Town 7. Multiyear Planning Appropriations is only an authorization to spend up to that amount • Allows decision makers to set long-term priorities and work towards goals rather If Revenues fall short of expectations, Appropriations need to be assessed for cutbacks or changes to funding sources such as being than making choices based only on the needs and politics of the moment taken out of Fund Balance Multiyear Financial Plan Multiyear Capital Plan Projects revenues and expenditures Identifies all capital and major Encumbrance is the step between Appropriation and Expenditure. for several years into the future. equipment needs, prioritizes A contract or purchase order is entered into, reducing the Illustrates potential future results of projects, and includes maintenance current decisions cycle to sustain current capital assets appropriations available, yet money has not yet gone out the door 3 4 3 4 Budget Basics – Grocery Shopping Example (1/2) Budget Basics – Grocery Shopping Example (2/2) Identify the Fiscal Year Establish a Budget Revenue Shortfall Leads to Amended Appropriations Encumbrance • This Shopping Trip • Plan to use $200 from Savings + $50 from a friend who owes me (Revenue Sources) • Friend has not yet paid you – you don’t • Picking up the toy obligates you to pay $15 • Total planned to spend is $250 (this is have the $50. • Groceries in the cart obligate you to pay $180 your appropriations) • With no other revenue source, your • Total Encumbered is $195 new budgeted spending is $200 Budget Review & Analysis of Expenditure Fund Balance • Checking out at the register – money • You planned to spend $250 but leaves your wallet only had received $200 • Purchase Request and encumbrance • Of the $200, you spent $195. closed for the toy ($15) and groceries Purchase Request You have $5 in your pocket at ($180). Total expended was $195 • Son wants a toy that costs $15 (unplanned – no budget for this) the end of the trip (this is your fund balance) Unexpected Revenue (Grant, bank interest, etc.) Close out Fiscal Year Review Budget • You find $20 unattended on the sidewalk • The trip is over, we had $10 remaining (surplus) after • Is this a priority of this trip? Is Amend Budget (unrestricted revenue). Your fund balance is now $5 both the shopping trip and restaurant meal which we can there enough of the $200 left + $20 = $25 hold onto (fund balance) to use towards the next • Total planned groceries come to • You can now get ice cream, put gas in your car, etc. - shopping trip, or put it towards your car payment, or to pay for this? $180, leaving $20 in your If you go to a restaurant planning to spend the $25 utilities, dinner, etc. (allocating fund balance in a new pocket. You allow your son to on dinner (you amended your budgeted year’s budget) use the $20 left. Approve Purchase Request appropriations to include $25 Restaurant Food) then • You want to assess your next shopping trip’s needs based • Now you have allocated $180 • As the $15 toy is less than receive a coupon for a free drink (grant), you can on your needs at the time. Just because you spent $15 on Groceries, $20 to Son $20, you allow him to pick up only use that coupon on a drink as specified. The a toy last trip, doesn’t mean its best to budget another the toy $25 needs to cover your remaining meal. Lets say $15 for toys on your next trip. Similarly, you paid for the your bill comes to $15 which you pay in full. Your restaurant meal out of a one-time revenue source. You fund balance is now $25 - $15 = $10 should not plan another restaurant meal, just because you had that during your last trip (match appropriations to 5 planned revenue sources) 6 5 6 1