By Arielle Robinson
Acworth’s city council held a public hearing Thursday evening where City Manager Brian Bulthuis provided a very brief overview of Acworth’s proposed fiscal year 2022 budget.
Bulthuis said that the city has a general fund revenue total of about $18,596,565 for FY 2022.
The city’s expenditures add up to $18,677,739 with a projected use of the fund balance of $81,000.
To get a basic understanding of what revenues, expenditures, use of fund balances and other financial terms are, scroll to the end of this article.
The board’s proposed budget for the upcoming fiscal year is lower than the city’s current budget, which is $19,067,149.
Bulthuis clarified that the FY 2022 general fund revenue is an estimate.
At the end of this month, the board will receive the city’s tax evaluations and in mid-July, the council will set a millage rate after public hearings. These are the factors that can adjust the city’s overall budget.
Bulthuis also said that sanitation and power make up the largest portions of the city budget, with the latter’s revenue estimated at just over $15 million.
The city also projects a $110,000 use of the fund balance for its sanitation department, as the department is purchasing more equipment they view as necessary.
Although the public hearing presented an opportunity for residents to voice their questions and/or concerns about the budget, no one approached the board.
The board will decide to adopt a budget at its next meeting on Thursday, June 17.
Acworth’s mayor, board and heads of city departments have been working for months now on the FY 2022 budget at work sessions and private meetings.
The board typically holds work sessions on Mondays to discuss the more tedious details of operating the city, such as deciding what to spend their funds on. These work sessions are open for the public to attend at City Hall.
The city’s budget will go into effect July 1, 2021, and end June 30, 2022.
More details on the budget will be provided after the city approves it.
Here are definitions of some of the financial terms Bulthuis used:
Fiscal year: According to Investopedia, a fiscal year is “a one-year period that companies and governments use for financial reporting and budgeting…not all fiscal years correspond with the calendar year.”
General fund: According to AccountingTools.com, a local government’s general fund is “the primary fund used by a government entity. This fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the government entity. Since the bulk of all resources flow through the general fund, it is most critical to maintain control over the expenditures from it.”
Expenditures: According to Cambridge Dictionary, expenditures are simply “the amount a government spends in a particular period.”
Revenue: According to Dictionary.com, revenue in this situation refers to “the income of a government from taxation, excise duties, customs, or other sources, appropriated to the payment of the public expenses.”
Fund balance: According to the Governmental Accounting Standards Board, “the fund balance in any given fund is essentially what is left over after the fund’s assets have been used to meet its liabilities.”
Millage rate:According to Investopedia, the millage rate is “the tax rate used to calculate local property taxes. The millage rate represents the amount per every $1,000 of a property’s assessed value.” Acworth’s board increased the millage rate from 7.60 mills to 8.95 mills last year.
Arielle Robinson is a student at Kennesaw State University. She also freelances for the Atlanta-Journal Constitution and is the former president of KSU’s chapter of the Society of Professional Journalists as well as a former CNN intern. She enjoys music, reading, and live shows.