This article discusses how budgeting can help your city's finances. In addition to providing an overview of how city funds are allocated, it also focuses on the types of programs and policies that help individuals and families in need. The Budget ordinance is a tax levied and revenue raised. And finally, we'll discuss the interest expense on intragovernmental debt. These are all crucial components of a city’s finances, so make sure you're familiar with them all.
Budget ordinances that levy taxes or raise revenue
The budget ordinance outlines the amount of tax collections that a local municipality must collect. Finance officers distribute tax collections to the appropriate funds. According to the budget ordinance, the finance officer distributes property taxes on a monthly basis. The finance office must ensure that all tax collection are distributed according the budget ordinance. The amount of taxes collected each month must be sufficient in order to cover local government expenses.
The governing body must adopt the budget ordinance. The ordinance may be amended if the governing board sees fit. G.S. 159-13. The amount of property taxes that are due is not affected by the amendment. A court of competent jurisdiction or State agency with the authority to enforce taxes must order an amendment to a buget ordinance. Before any additional tax collection can be permitted, the budget ordinance must first be approved by its governing board.
Assistance for individuals and families in need
In times of recession, open-ended entitlement programmes can be a valuable source of fiscal support. More people can be eligible for these programs if their incomes decline. These programs are less likely to offer fiscal support as the economy expands and more people may not be eligible. These programs can still be helpful in stabilizing an economy during an up-and-down economic environment. Here are some programs and their specific eligibility criteria:
Temporary Assistance for Needy Families, or TANF, is another state-run and federal benefit program. Recipients must participate in work activities according to their state. To apply for TANF contact your state TANF or county social service office. Remember that, if you qualify for TANF, you are not disqualified from receiving other government benefits, such as food stamps and other financial assistance.
Intragovernmental debt incurs interest expense
In fiscal 2011, the federal government's interest cost was $453 billion. This slight increase is from the prior year. This may seem small but it's a significant increase over the previous fiscal year's $126 million. Federal government debt is becoming more expensive because the total spending of the federal government exceeds its revenues. Total gross public debt (intragovernmental) and total debt at the end of September 2011 was $10127billion, and $4654billion, respectively.
Most of the federal government’s intergovernmental debt is held within government trust funds. The Social Security OASI Trust Fund holds $2.8 trillion. The majority of the debt remains in federal military and civilian retirement trust fund, which are expected to continue building assets. Although it is not shown in the consolidated balance sheets, intragovernmental debt is a serious burden on the economy. In addition to consuming resources for private investment, borrowing by the government from the public can also lead to higher interest rates. Current taxpayers will eventually pay interest on the government debt, as it is in cash.