Local Government Budget and Fiscal Control Act
The Local Government Budget and Fiscal Control Act (LGBFCA) governs all local governments in the state of North Carolina. Each local government is subject to the provisions of the LGBFCA. These provisions establish a unified budgeting process and set certain mandated internal controls to ensure the proper handling of the public's moneys. This legislation also prescribes the procedures for disbursing public funds and accounting for all of the Town's financial functions. Knightdale budgets and accounts for its revenues and expenditures in accordance with the LGBFCA, and maintains its various funds in compliance with this law.
The Knightdale Town Council is ultimately responsible for ensuring compliance with the act's requirements. The Town Manager serves as the Budget Officer. Along with the professional guidance of the Administrative Services Director and Finance Officer, the Budget Officer prepares an annual budget that meets the Town's projected needs and is in compliance with state law.
What is a Good Budget?
The budget document and its preparation and adoption express the basic political values of the Town. The Town's budget reflects the negotiations and compromises undergone during the continuous process of budget preparation and adoption. The budget expresses our government’s economic and political role in the community by guiding, sanctioning, and limiting administrative action. Budgets not only represent plans for the future, they also mold that future by the policies they contain.
A good budget establishes a vision for its respective community and communicates, with utmost transparency, the vision for the future.
The Budget Process
There are three general stages in the annual, budget preparation and adoption process including:
- By April 30.
Departmental formulation of expenditure requests and revenue estimates.
- By June 1.
Preparation of a recommended budget by the Budget Officer and presentation to the Town Council.
- By July 1.
Review and adoption of the Annual Budget Ordinance by the Knightdale Town Council.
How to Read the Budget?
North Carolina General Statute 159-11(b) requires the preparation and submission of a Budget Message along with the budget document. The message is a summary of the previous year's accomplishments and an overview of the major budgetary areas for the upcoming year. It specifically identifies major goals & activities, outlines appropriation levels, and provides an overview of the Town's fiscal policy.
How the Budget is Amended?
The annual budget ordinance may be amended any time after its official adoption; however, the amendments cannot increase or decrease the tax levy or alter a taxpayer’s liability unless the Town is ordered to do so by the courts or an authorized State agency.