Budgeting and Management for the AICP Exam

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Staff Functions

Provide Services to other governmental entities

Line Functions

Provide services directly to the public (i.e. subdivision reviews, rezoning cases, code enforcement)

GAM stands for:

Goals Acheivement Matrix

GAM

Chart that shows the anticipated attainment of a project's goals and the assignment of accomplishing a goal to a group

Gantt Chart

Focuses on a sequence of tasks necessary for project completion. Each task is represented as a horizontal bar on an XY chart. X is time.

Linear Programming

project management method that attempts to find the optimum design solution for a project. This system takes a set of decision variables within constraints and comes up with an optimum design solution

PERT stands for:

Program Evaluationand Review Techinique

PERT

Scheduling method that graphically illustrates the interrelationship of the project tasks. Identify milestones, determine sequence, network diagram, critical path, update PERT chart as project progresses

CPM stands for:

Critical Path Method

CPM

tool to analyze a project. The analysis results in a "critical path" through the project tasks. each task has a know amount of time to complete and cannot be completed before its previous one is completed. The longest pathway is the critical pathway.

PERT and CPM work when?

A project is of a large scale. Using software.

Strategic Planning

used to assist in guiding the future. Sets goals, objectives, and policies for reaching objectives.

Strategic Plan should address major questions:

1. What is the current situation and how is it going to change? 2. Where are we going as an org? 3. How will we get there?

Eight elements of a Strategic Plan

1Analyze the community's needs 2Identify results-det the long-term objectives that will be pursued 3Admit uncertainties-SWOT analysis relating to the objectives 4Inv stakeholders 5.Dev & eval alt's 6ID role of City 7Dev funding policy 8Eval performance

Strategic Planning is ________ -term in focus and is specific in accomplishing certain________________

short, objectives

An operating budget includes:

the everyday expenditures of an organization, such as supplies, personnel, and maintenance of office space

A capital budget includes:

long-term purchases, such as a new building, a rec center, water main, or majore equipment.

Capital Budget is for the period of

one year

Capital Improvements Program is for the period of

Five to ten years

CIP includes

project descriptions, estimated costs, construction timeline, and sources of funding

Budgeting can be used for (name 5)

resource allocation, financial control management control, a communication tool, a planning tool

Line-item Budgeting

the emphasis is on projecting the budget for the next year and adding in inflationary costs

Advantages of Line Item Budgeting

Does not require eval of existing services, is easy to prepare and justify, and is easy for public officials to understand

Disadvantages of Line Item Budgeting

lack of flexibility, lack between budget request and objectives of the organization

Line-Item Budget looks at ________ year(s) and is not linked to:

ONE, strategic, comprehensive, or capital improvement plans.

PPBS stands for:

Planning, Programming, Budgeting Systems

PPBS is focused on planning through

accomplishing goals set by the department

Advantage of PPBS

it helps deparments place programs in perspective and evaluate efforts and accomplishments

Disadvantages of PPBS

Time consuming, requires goals and objectives to be stated in measurable terms

PPBS includes:

Program mission statements, objectives, and indicators of success.

ZBB stands for:

Zero Based Budgeting

ZBB

Emphasizes Planning and fosters understanding within all units of the organization

Performance Based Budgeting is focused on

linking funding to performance measures.

Pay-as-you-go Financing

uses current funds to pay for capital improvement projects

Reserve Funds

are ones that have been saved for the purchase of future capital improvements

General Obligation Bonds

are voter approved bonds for capital improvements. GO Bonds use the tax revenue of the gov. to pay back the debt

Revenue Bonds

use a fixe source of revenue to pay back debt. i.e. water use fees could be used to pay back revenue bonds for a water main

TIF stands for

Tax Increment Financing

TIF allows a designated area to

have tax revenue increases used for capital improvements in the area

Special Assessments

allow a particular group of people to be assesssed the cost of a public improvement.

Lease-purchase allows a governement to

"rent to own"

GRANTS are available to government by

all levels of government, the private sector and foundations

Taxes are used to generate revenue to:

finance government and redistribute income

Three types of taxes:

Progressive, proportional, and regressive

Progressive Taxes

The tax rate increases as income rises

Proportional Tax

The tax rate is the same regardless of income

Regressive Tax

The tax rate decreases as income rises

Criteria used for the implementation of a tax:

fairness, certainty, convenience, efficiency, productivity, and neutrality

Tax-Write off

when governments offer tax inventives in order to attract economic development

Design Charette

intensive collaborative effort that brings together citizens, stakeholders, and staff to develop a detailed design plan for a certain area

Delphi Method

structured process of citizen participation with the intent of coming to a consensus

Facilitation

uses a person who does not have a direct stake in the outcome of a meeting to help groups that disagree work together to solve complex problems and come to a consesus decision.

Mediation

is a method where a neutral third party facilitates discussion in a structured multi-stage process to help parties reach a satisfactory agreement.

Public Hearing

A meeting before a public body allowing for formal citizen input. Public hearings are typically mandated by law.

Visual Preference Survey

a technique that can be used to assist citizens in evaluating physical images of natural and built environments.

Visioning

a process whereby citizens attend a series of meetings that provide the opportunity to offer input on how the community could be in the future. Visioning is typicall a 20 to 30 year outlook

problem definition steps

1define problem 2specify boundaries 3develop fact base 4list goals & objectives 5identify range of solutions 6define potential costs & benefits 7review the problem statement