Introduction to Budget and Five-Year Forecast

The Budget and Five-Year Forecast is a financial plan for the operation of the Village activities. Expenditures and revenues are estimated for the ensuing fiscal year, showing in detail what is proposed to be expended and the method of financing the expenditures.  The budget represents the equation for determining the tax levy. Expenses, less estimated revenues, appropriated fund balance and appropriated reserves equal the amount of taxes to be levied.

The framework of the budget is based on the Uniform System of Accounts for Villages. Expenditures are categorized under the following three different account headings:

.1 Accounts are expenses for personal services

.2 Accounts are expenses for equipment

.4 Accounts are contractual expenses.
 

The Village of Liverpool implemented a rolling five year forecast (93k) in 1998. This is used as a budgeting tool and gives the board the opportunity to foresee future expenses. This document includes the actual revenues and expenditures for the past four years, the budgeted amount for the current year and the projected revenues and expenditures for the next four years. The difference between anticipated revenues and anticipated expenditures is the key to the future of the financial status of the Village.

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