A base budget is the funding required to carry on existing programs at the same level of service as last year. This represents essentially a status quo starting point. The base budget is calculated as follows:
Current Year Base Budget = Prior Year Approved Budget
+ Inflation
+ One-time charges/Revenue
+/- Known uncontrollables
+/- Annualized Costs or revenues
+ Capital Impacts
Base Budget adjustments for service revenue items approved by Council prior to Budget submission to Council. Finance will prepare and provide the base adjustments required for the following common items:
- Payroll Salary, Benefit and Pension annualizations
- Insurance
- Prior year issue eliminations and annualizations
- Debt repayments
- Other contractual payments
- Changes resulting from fluctuations in commodity or utility costs
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