Finance Departments FAQ’s
Q. What is the Budget Cycle?
A.The Budget cycle is the process from beginning to develop a budget to the final charge against a budge. Since budget allocations are on an annual basis, the cycle covers the cost/expenditures for a single year. For the City of Clarkston, the budget cycle runs from January 1 through December 31.
Q. How is revenue generated?
A.Municipal revenue sources are often divided into two categories: general fund revenues and enterprise funds. While enterprise funds (charges for municipal water and sewer service, municipal gas service and municipal electric service for example) account for more than half of total municipal. General fund revenues), the four highest municipal revenue sources are (1) property taxes, (2) sales taxes, (3) excise and special use taxes (e.g., alcoholic beverage, insurance premiums, hotel-motel, and occupation taxes) and (4) franchise fees.
Q. When are expenditures processed?
A.Expenditures are paid on a bi-weekly basis, all expenditures for payment are due on Monday by 12 noon and will be processed and mailed on Friday.
Q. What is a balance budget?
A.A balanced budget (particularly that of a government) is a budget with revenues equal to expenditures and neither a budget deficit. Generally, it refers to a budget with no deficit, but possibly with a surplus.