A Municipal Budget: The Red Lake Municipal Budget

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Recommended: Cost accounting Exmanation

A municipal budget is a financial plan that details the level of spending needed to bring the municipal services to the community at the same time maintaining the municipal assets by letting a clear balance between the assets and the liabilities. The budget document allows the mayor and the council to make decisions regarding the services that they provide to the community in the municipality. It acts as a guide to the infrastructure development programs as well as the management process. The budget ultimately is used to also determine if a tax increase is required. The annual budget of the Municipality of Red Lake that was presented for the year 2014 presented an adequate overview of the entity. Budget structures are made up of one to four budget levels that correspond to increasingly more detailed levels of budgeting in the structure where each of the budget structure has got its own attributes. A budget structure has got several budget levels. A budget level is composed of one to many parts of account elements that are grouped together and define the individual budgets at that level.
The budget structure defines the framework in which individual budgets are established maintained controlled and tracked. It is composed of the budget levels that define the budget hierarchy of the structure.
The Red Lake municipal budget adopts the cost accounting budget structure. These are budget structures that are established and maintained by departments except for the capital spending structure which the ANF maintains. The ANF establishes the capital spending during the fiscal year giving the capital spending structure. The various departments that make up the entity establish program budgets. The departments also establish the reimbursable...

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...veloped clearly. The availability of different sources of financing for the municipality means that it is able to diversify the income sources which in turn make sin much secure by eliminating the risk that is accompanied by only a single source of income for operations of an entity. Increased delivery of services indicates the increased capability of the municipal to a level that it can be able to provide the necessary services while maintaining the surplus.
The increased overall budget is an indicator of a growth in the capacity and the size of the municipal. The overall budget has risen from 23,086,836 in the year 2014 which has grown from 23,086,836 in the year 2013. However the budget is also slightly lower as compared to the 26,206,068 in 2012. Increase in the budget size indicates increased capacity and size as it is accompanied by an expansion and size.

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