The Budget Process

Wake County operates on a Fiscal Year that runs from July–June

The annual budget process commences in the fall of the preceding year, with the distribution of the Budget Instruction Manual and the development of the budget calendar. The calendar establishes the timelines for the process, including the date of submission of departmental requests, budget work sessions and public hearings that lead to final adoption of the budget.

Department requests are based on Budget Instructional Manual guidance. Each request must relate to the organization’s program objectives in preparing cost estimates. Before considering budget reductions or expansions, the “base budget” is developed. The base budget is generally defined as the cost of providing the same services, at the same levels, in the next fiscal year. The Budget and Management Services Department develops a target base for each department. The target is based on several factors, including salary projections, annualization of new initiatives and facilities, removal of one-time costs from the prior year, and other factors. Once the target is established, department staff may modify the  amounts within the target total, but may not exceed the target, except for certain contractual obligations.

County departments also submit options for reducing their base budgets. In FY 2010, departments submitted reductions totalling 10% of their annual operating budgets. The options had to be permanent in nature, as opposed to one-time savings.

All reduction options were evaluated not only for potential savings, but for their near-term and longterm service impacts.

Areas of new services or service expansions requested by departments were based on a strong definition of the issue, strategic alignment of plan and objectives, a clear statement of what is trying to be accomplished, and identification of opportunities to collaborate or partner with others. Each expansion item was analyzed based on these objectives. These requests were received and compiled by the budget staff.

Board of Commissioners’ Authorization and Appropriations

In compliance with the North Carolina Local Government Budget and Fiscal Control Act (G.S. 159-8) the Board of Commissioners adopts an annual balanced budget ordinance for all governmental and proprietary funds except funds authorized by project ordinances.

All budget ordinances are prepared on the modified accrual basis of accounting. The annual budget for governmental funds and proprietary funds must be adopted no later than July 1. Agency funds are not required by state law to be budgeted. All capital projects funds and certain special revenue funds (Revaluation Reserve, Capital Area Workforce Development, Housing and Community Revitalization, Grants and Donations) and expendable trust funds are budgeted under project ordinances spanning more than one fiscal year and are controlled by project. Project appropriations continue until the projects are complete.

County Manager’s Authorization

For those funds for which annual budgets are adopted, appropriations are budgeted and controlled on a functional basis and amended as necessary during the fiscal year. The County Manager is authorized to transfer budgeted amounts within any fund; however, any transfers exceeding $75,000 shall be reported to the Board of Commissioners. Revisions that alter the total appropriations of any fund must be approved by the Board of Commissioners.

Budget Implementation

Once the budget is adopted, on July 1 it becomes the legal basis for the programs of each department of the County during the fiscal year. No department or other agency of the County government may spend more than approved and appropriated amounts.

Financial and programmatic monitoring of departmental activities to ensure conformity with the adopted budget takes place throughout the year. Copies of the Adopted Budget can be found in the County’s five regional libraries and may be obtained from the Budget and Management Services Department. The Adopted Budget is also published online at the County’s website: www.wakegov.com.

Unencumbered appropriations lapse at the end of the fiscal year and are returned to fund balance for reappropriation. The County Manager is responsible for maintaining a balanced budget at all times. If there is an excess of expenditures over revenues, the County Manager will take actions necessary to rebalance the budget.