*Under review for formatting of charts and graphs*
2018 BUDGET MESSAGE
Submitted herein is the Moffat County Budget for 201 8. The 2018 Budget is created through a compilation of figures submitted by elected officials, department heads and boards. This budget is balanced as required by Colorado law. In addition to the Moffat County Budget are the budgets for the component units, where the Moffat County Board of Commissioners either serves as the Board of Directors or appoints the Board of Directors
for the entities.
The 2018 Moffat County Budget totals $97,077,875 which is $ 10,874,659 or 12.62% more than the 2017 budget of
$86,203,217. The budget is funded with revenue estimates and anticipated fund balances.
The Memorial Hospital, as an enterprise, is the county’s largest component unit budget. The 2018 Memorial Hospital Budget totals $60,373,587 an increase of 24.18% or $11,754,654 more than their 2017 budget of
$48,618,933. The remaining Moffat County Budget, without the Memorial Hospital component unit, is
$36,704,288 a decrease of $ 879,996 or (2.34%) less than the 2017 budget of $37,584,283. The Memorial Hospital budget history compared to the remaining county budget is shown in the chart below:
FACTORS INFLUENCING THE 2018 BUDGET DEVELOPMENT
The budget document is submitted as a one year operating plan setting forth the required and discretionary
expenditures for public service. By statute, the budget must be balanced ea ch year (C.R.S 29 -1-103(2). In order to balance the budgeted expenditures, the fund balance reserves beyond expected revenues are used from previous years.
Declining revenues in property tax, which support 30% of county operations, continues to be a budgetary issue resulting in a valuation decrease since 2011 of $100, 392,405 mainly due to the lack of oil and gas activity in
Moffat County. As property tax is collected the year after assessment, this is resulting in a $2,12 1,691 decrease in revenue since 2012 for Moffat County as shown in the table and chart to follow :
Valuation Year 2011 2012 2013 2014 2015 2016 2017
Valuation $487,067,917 $ 481,684,492 $ 466,342,922 $ 470,921,402 $ 460,492,933 $ 409,697,812 $ 386,675,512
Budget Year 2012 2013 2014 2015 2016 2017 2018
Property Taxes $ 10,192,383 $ 10,053,719 $ 9,733,509 $ 9,829,071 $ 9,611,408 $ 8,551,213 $ 8,070,692
Due to the struggles with revenue shortfalls and capital improvement needs, a 10 year Capital Improvement Plan (CIP) has been developed to address vehicle and equipment rotation along with building improvements. Typically, a CIP is built on a rotation basis such as vehicles rotate every 5 years or 100,000 miles. The CIP for
Moffat County is based off of scoring mechanisms to identify the highest repla cem ent need from usage . For example: an older vehicle that may have low miles due to in town use may not be a high need of replacement and will stay on the rotation until the mileage and condition of the vehicle is scored for highest replacement
need. Further details on the CIP are loc ated in Capital Improvem ent Program section .
In order to determine the revenues available for the future, in a natural resource based economy , 5 year projections for revenues and budgetary costs have been used beyond the 2018 budget. While not an official long term financial plan, these projections assis t in budget strategies to provide the services for the citizens, adjusting the service level where necessary, and to ensure that the legacy of wonderful and unique community assets are adequately maintained for future generations to enjoy while improving the county’s financial condition for the future citizens.
Due to the 5 year projections, the funds identified of most concern include: General, Road & Bridge, Airport, Library, Senior Citizens, Jail, Human Services and Museum as identified in the chart to follow :
2018 MOFFAT COUNTY FUNDS OF TOP CONCERN
Funds Include: General, Road & Bridge, Airport, Library, Senior Citizens, Jail, Human Services and Museum.
Long Term Financial Forecasting
2015 Actual 2016 Actual 2017 Estimate 2018 Budget
Fund Balance Used 232,584 603,030 781,469 1,573,642 2,065,361 2,361,864 3,542,775 3,986,191 4,155,337
Total Revenue 30,438,451 30,067,151 28,457,816 30,079,111 28,919,180 28,987,875 29,982,349 30,244,348 30,194,761
Personnel Expenditures 13,888,822 13,877,109 14,068,968 13,964,198 14,356,408 14,643,536 14,942,491 15,241,341 15,564,541
Operating Expenditures 10,033,161 9,723,477 9,564,584 10,352,896 10,387,320 10,449,516 10,516,759 10,589,597 10,668,572
Capital Expenditures 1,091,644 1,503,654 1,836,145 4,219,227 1,867,016 1,593,638 2,209,043 2,055,719 2,004,210
Transfers Out 3,112,090 3,237,246 2,831,159 1,379,143 2,281,801 2,275,496 2,298,332 2,333,982 1,934,742
Fund Total Expenditures 28,125,718 28,341,486 28,300,857 29,915,465 28,892,544 28,962,186 29,966,625 30,220,638 30,172,064
Beginning Fund Balance 19,796,250 21,876,393 22,999,025 22,374,515 20,964,519 18,925,794 16,589,619 13,062,567 9,100,087
Ending Fund Balance 21,876,393 22,999,025 22,374,515 20,964,519 18,925,794 16,589,619 13,062,567 9,100,087 4,967,446
Restricted Reserves 2,156,873 2,079,854 1,915,616 1,702,946 1,513,622 1,270,566 990,194 667,127 256,714
Non-spendable 1,610,560 1,216,718 1,528,879 1,528,879 1,278,879 1,278,879 1,278,879 1,278,879 1,278,879
Committed Reserves 6,703,150 6,874,462 6,276,004 4,880,830 4,994,262 5,064,999 5,139,752 3,706,692 1,255,353
Assigned Reserves 6,461,188 7,053,519 7,213,886 6,542,772 6,249,802 5,714,030 4,615,688 3,447,389 2,176,500
Unassigned Reserves 4,944,621 5,774,472 5,440,129 6,309,093 4,889,230 3,261,146 1,038,054
% Cash on Hand 76% 83% 80% 73% 65% 56% 42% 28% 13%
Days Operating Cash on Hand 276 305 292 266 238 204 155 101 48
In the past, Moffat County has been budgeting incrementally, meaning that the current year’s budget
becomes the basis for the next year’s budget. This type of budgeting process is workable, as long a s expenditures and revenues remain stable. When budget cuts are necessary due to an increase in
expenditures, decrease in revenue or even both, across the board cuts (usually based on a percent of the
department’s total budget) are no longer effective. C utting across the board can be detrimental to programs and services needed in the community, which makes it an ineffective process.
Through the 2018 budget process, discussions with all departments and elected officials have been held and budgets adjusted. Th ese adjustment s will allow for better accuracy of service costs as the county continues to take on a new budget strategy approach by utilizing the Priority Based Budgeting (PBB) tool that was started in the 2017 budget process while in the midst of statutory deadlines of the proposed budget adoption by October 15th and final budget adoption by December 15 th.
PBB uses the philosophy that resources should be allocated according to how effectively a program or service achieves the goals and objectives that are of greatest value to the community. This process can be used to understand larger community values, and budget according to those values, while providing flexibility in order to meet the changing needs of the community through community and government results.
Since February of 2017, departments have been working through the PBB process identifying services they provide and aligning their 2017 budgets to the services so that the cost of service is identified.
The next phase of the PBB process i s to align the priority categories to the following goals of the Board of County Commissioners :
o Maintain and promote a financially stable county government that is transparent and effective.
o Continue to enhance the understanding of civic participation, engagement and confidence in county government.
o Maintain and improve the county transportation system, facilities and infrastructure.
o Consistently support loc al and regional economic strength.
o Strive to ensure a safe, secure and healthy community.
o Support energy industry, fossil fuels, lobbying efforts, etc.
Maintain and promote a financially stable county
government that is transparent and effective.
Health & Well Being of Community Enhance and Develop Natural Environment and Community Resources
Continue to enhance the understanding of civic participation, engagement and confidence in county government.
Maintain and improve the county transportation
system, facilities and infrastructure.
Enhance and Develop Natural Environment and Community Resources
Consistently support local and regional economic strength.
Health & Well Being of Community
Strive to ensure a safe, secure and healthy
Enhance and Develop Natural Environment and Community Resources
Support energy industry, fossil fuels, lobbying efforts, etc.
Services are aligned within the definitions under each priority category as the following chart shows:
Moffat County 2018 Budget 4
Health & Well Being of Community Enhance and Develop Natural Environment and
Enables and enhances openness and transparency by ensuring accountability, honesty, efficiency, best practices and innovation in all operations. Builds and empowers an informed, aware, involved and engage citizenry that partners to share in the responsibility for the community's safety. Partners with community groups to promote and provide the day-to-day physical, mental and socio-economic health of its residents by sustaining a thriving, secure and nurturing environment. Partners with the community to ensure the protection of its open space and development of agricultural, public lands, energy and recreation and to appropriately promote its use. Provides for sustainable, well-planned and well-designed infrastructure. Supports strategic sustainable development and reinvestment that stimulates economic growth and community needs.
Sustains a resilient financial position supported by sustainable, balanced revenue streams, fiscally responsible expenditures and supported expenditure growth. Offers protection to lives and property, protects the community by preventing crime, enforcing the law, administering justice and promptly and effectively responding to emergencies and
calls for service. Promotes and maintains a visually appealing, inviting and revitalized community that encourages citizen involvement, participation and pride. Provides for the enhancement, conservation and efficient use of its water supply and other natural resources. Ensures continual improvement is balanced against effective long-term maintenance of existing infrastructure. Cultivates and supports an economic environment that is prosperous and sustainable; providing quality public services that meet the needs of the community.
Delivers responsive and courteous service to its internal and external customers, while ensuring timely and effective two-way communication. Creates an environment that feels secure, welcoming and inviting with a visible and approachable public safety presence that focuses on proactive prevention, early intervention and safety education. Provides a safe, clean and attractive community in which to live and work, offering quality parks, ample recreational opportunities and desirable residential
neighborhoods. Implements land use plans that mitigates factors impacting natural resources. Manages and operates a safe, reliable and well-maintained infrastructure
system. Encourages and supports the recruitment, retention and growth of a well-balanced mix of businesses that stimulates the regional economy and focuses on a well-planned, unified regional vision.
Reduce the cost of government by implementing business processes and other operational efficiencies. Provides a safe public infrastructure network that is well- maintained, accessible and enhances safe traffic-flow and mobility Offers a wide range of quality leisure, athletic and recreational interaction opportunities for seniors, youth and teens. Restores, revitalizes and redevelops historical resources to preserve and protect its heritage for current and future generations to use and appreciate. Proactively plans for the County's growth by preparing and following and integrated, comprehensive, future- focused master plan that provides for quality, sufficiently regulated development and land use that is consistent with community standards. Leverages its strengths by developing partnerships and collaborate with others to diversify and advance economic development at the enterprise, community and regional levels that attracts and retains a diverse business mix.
Promotes informed, involved and engaged community through public outreach, education and timely communication. Pursues alternative methods of service delivery that are cost- effective and successful in meeting the community's needs. Promotes a variety of opportunities, through collaborative partnerships, that focus on the arts, cultural enrichment, education and events that promote the community's heritage. Educates and encourages Citizens to be engaged, well-informed and assume shared responsibility and instill community pride. Develops public/private partnerships to invest in and promote well- planned, quality development, redevelopment and renovation that revitalizes the community and is in alignment with community standards.
This alignment of services through the use of the PBB tool will continue in 2018. Once the process is complete, it can be analyzed to determine which services achieve the priorities that support the goals. This process can be used to adjust the budget to according to the changing needs of the community .
STRATEGIES TO INCREASE REVENUES
Economic and societal challenges effecting Moffat County’s future will continue to place increased pressure on the Board of County Commissioners. The following strategies have been developed to address the future for Moffat County:
Provide proactive and positive influence for impacts and issues known at both the state and federal level to support Moffat County’s natural resources and access to public lands.
Strive to maintain assets that will improve facilities, increase community appearance that will in turn increase community pride and attract potential residents.
Continue to work with agencies that have similar needs or vision in order to prosper and improve the quality of life in Moffat County.
Use restricted rev enues, such as Conservation Trust (lottery dollars that must be used on parks and recreation), to enhance recreational opportunities and attract potential residents .
Use existing county resources, assets, employees and dollars, to further the economic future of Moffat County while emphasizing and enhancing growth and diversification for our local economy .
Explore a possible ballot measure in 2018 to support s pecific programs .
With declining revenues, our focus will continue to evaluate the financial impacts to general fund and the funds they subsidize.
POLICY CHANGES THAT EFFECT THE BUDGET
The B oard of County Commiss ioners a dopted policy changes to allow for the cash flow needed to provide services as well as strengthen the county’s future through long term forecasting and dedicated reserves. The following highlights are the effect on the budget from those policy changes :
Align cash flow from reserves to fund services .
Past budget policies have identified a 90 day cash reserve for funds. Making these funds unallowable in the budget process.
By reducing most funds to 60 days and realigning the remaining funds for cash reserve, while abiding by statutory requirements and best practice recommendation for the county to keep good bond rating, it
allows for more funds available to provide the services to the citizens with declining revenues. The reduction from this adjustment utilizes fund balances and also reduces transfers from General Fund that subsidizes the Senior Citizens (bus and meals) , Jail and Museum Funds in 2018.
The remaining reserves will have restrictions on use through a revised budget policy, such as ca pital reserve and a c ounter cyclic al reserve for those funds that are most affected in an ec onomic downturn
The current budget is used to determine future budget needs by applying reasonable expectations of how costs and revenues will change under typical circumstances for long term budget forecasting .
Revenues are based off of historical trends.
Expenditures are in three categories and are based off of Consumer Price Index and historical trends.
• Personnel: Wages, longevity, retirement, workers c ompensation, health, dental, vision, and life insurance benefits .
• Operating: Remaining expenses other than personnel and capital.
• Capital: Capital Improvements or Projects to maintain and rotate equipment ne eds a cc ording to the CIP 10 year plan.
The current budget is adjusted when long term budget forecasting indicates shortfalls.
One-time revenues cannot be used to commit long term expense.
One-time revenues are revenues received beyond the revenues projected in the budget, as such , should not b e used for on -going expenses such as personnel and operating.
One-time revenues are either committed to the future through the reserves or through one -time expense.
One-time expenses are programs, services, or capital that is only spent in a particular y ear and are not on-going in nature.
Counter cyclical reserve to sustain through unexpected revenue shortfall years.
Funds that receive major funding sources such as property tax , sales tax and highway user tax fees will have a c ounter cyclic al reserve . For the 2018 budget, the funds with counter cyclical reserves are General, Road & Bridge, Library and Social Services. The reserve may be utilized under the following conditions:
• If a major revenue source decreases 5% within a given year, after budget is adopted, the funds can be used to offset revenue declines. Budgets must be adjusted to replenish the reserve within 2 years after use.
• Continued revenue shortfalls will results in budgetary realignment to compensate for the decline in revenue.
Capital R eserves.
As of 2016, Moffat County has assets valued at $48 million; $5.7 in vehicles, $12.4 in equipment and $30 million in buildings and equipment . In order to maintain assets and assist with the Capital Improvement Plan the following process is utilize d:
Sale of assets in a prior year is placed in the capital reserve for future use in the fund that the transaction occurred.
Budgetary savings from unspent capital are also placed in capital reserve for future use in the fund that the savings occurred.
One-time revenues, outside of one -time expenses designated by the Board of Moffat County Commissioners, are fo r future capital reserve use in the fund that the one -time revenues occurred.
Moffat County’s Budget c ontains 23 funds. Summary fi gures for each fund can be found in the fund summaries throughout the budget. These summaries contain the revenues, expenditures and the available fund balance.
As the name implies, this is the fund that receives undesignated revenues which can be budgeted for any appropriate county purpose. This fund finances the majority of the traditional services associated with county government. Most of the budget deliberations center around this fund since it provides resource allocation flexibility. This fund supports 39 departments. It is necessary to review each department’s situation in some
detail to determine what is happening in 2018.
The General Fund has a decrease in expenditures of $1, 907,035 mainly due from one -time reductions in transfers out . Transfers betw een certain funds, as allowable by statute, are budgeted where revenues, such as charges for services , may not sustain the funding needs to support their specific fund function. The following funds were reduced in transfers out:
• Landfill due from rate inc reases that remove other county revenue support.
• Maybell Waste Water Treatment Facility due from rate increases that remove other county revenue support.
• Senior Citizens due from reduction in operating reserve to 60 days.
• Jail due from reduction in operati ng reserve to 60 days and increase in revenue from other county inmates.
• Museum due to reduction in other county revenue support.
The main reduction in transfers out is due from policy changes that reduce the 90 day reserve to 60 day reserve . This policy causes the Jail and Senior Citizens to utilize their fund balance in 2018. It is realized as a one - time reduction as the fund balanced used in 2018 is no longer available in the future.
After the fund balances are used to balance the budget in Seniors Citizens and Jail for 2018, the transfers out to these funds increase an estimated $ 899,283 in 2019 to balance future budget needs. The long -term reduction of expense to general fund is then $1, 907,035 less the $899,283 of one -time savings or $ 1,007,750.
The General Fund has a net increase in revenue of $ 698,501 that includes better revenue alignment, one -time grant revenues of $210,094 as well as decreased property tax and revenue projection adjustment .
In addition, Counter Cyclical and Capital reserves have been added.
The Board of Commissioner’s goal is to realign $2.5 million in expenditures or revenues to the general fund. To date the estimated realignment is: $1, 706,251. This is attributed to the following:
$698,501 in revenue projection adjustments by departments
$493,575 in expenditure adjustments by departments
$514 175 long term reduction of fund balance policy changes and transfers out
OTHER COUNTY FUNDS
A great many of the county’s programs are financed from sources outside of the General Fund. These funds have combined expenditures as well in excess of the General Fund budget. However, the nature of the
revenue sour ces mandate that these monies can only be used for specific activities. Hence, they are budgeted and a ccounted for in separate funds.
A. PUBLIC WORKS SERVICES
Public work services include the Road & Bridge Fund, Landfill Fund, Airport Fund and Maybell Waste Water Treatment Facility Fund.
The Road & Bridge Fund has an increase in expenditures of $1,253,076 mainly due to the $1.9 million dollar Swinging Bridge Project that is supported by multiple entities with the county ’s portion estimated at $100,000. More information can be located in the Capital Improvement Program section . Revenues have a total increase of $3,285,755 mainly due to the contributions of the Swinging Bridge Project along with better revenue alignment . As part of the revenue projection adjustment , $600,000 of this revenue adjustment is the uncertainty of Payments in Lieu of Taxes that is reauthorized on a yearly basis but has been consistently authorized throughout history. In addition, Counter Cyclical and Capital reserves have been added.
The Landfill Fund has a decrease in expenditure of $ 51,999 and an increase in revenues of $420,626 due to fee increase and contract with an out of county provider t hrough 2019. In addition, Capital reserves have been added.
The Airport Fund, which operates the Craig -Moffat County Airport has an increase in expenditure of $31, 114 and a decrease in revenue of $39 ,299.
The Maybell Waste Water Treatment Fa cility Fund, which operate s through the County by the Maybell Sanitation Advisory Board of County Commissioners, has a decrease in expenditures of $8,000 in capital and a net decrease in revenues of $1,532 due to eliminating General Fund transfer and increasing Charges for Services.
The Jail Fund accounts for the operations of the County Jail and maintenance for the Public Safety Center
building expenditures have decreased $ 22,592 and revenues have a net decreased $1, 195,301 due to a reduction in General Fund Transfer in to align the 60 days reserve along with an increase in Charges for Services.
C. HUMAN SERVICES
The Human Services Fund accounts for human services provided to the citizens of Moffat County, which is primarily funded from State and F ederal dollars. The Human Services Fund has an increase in expenditures of
$105,041 and an increase of net revenue of $3 55,888 that includes decreased property tax and additional state and federal funding allocated to Moffat County. In addition, Counter Cyclical and Capital reserves have been
D. INTERNAL SERVICE
The purpose of an Internal Service F und is to account for financing of goods and services provided by one department to other departments. They are set up to take advantage of economies of scale, to avoid
duplication of effort, and to accurately identify costs of specific governmental services. There is no significant change to the internal service fund.
E. HEALTH AND WELFARE
The purpose of the Health and Welfare Fund is to account for the monies accumulated to offset the costs of a health and dental plan for County employees. Moffat County has experienced an increase in insurance claims and prescription expenses through 201 7. These increases are expected to increase $ 25,046 and revenues increase $296,730 as part of the revenue projection adjustment.
The Museum fund is funded through the Museum Mineral Lease program and is responsible for managing the program. The expenditures have decreased $3 5,570 and revenue s have a net decrease of $70 ,500 due to reduction in General Fund Transfer in of $100,000 and an increase in revenues as part of the revenue projection adjustment of $29,500.
The Library fund is to account for revenues and expenditures for the Craig -Moffat Library, the Maybell Library, and the Dinosaur library. The expenditures have decreased $219,056 and the revenues have decreased
$76,889 that includes decreased property tax. In addition, Counter Cyclical and Capital reserves have been added.
Each fund has greater detail of the budget changes that affect the beginning, ending and fund balances used and are referenced throughout this document in each fund’s summary pages.
One of the county’s largest component unit budgets is the Memorial Hospital. The 2018 Memorial Hospital Budget totals $ 60,373,587. The remaining Moffat County Budget, without the Memorial Hospital component unit, is $36,704,288.
The expenditure changes to each of these funds are summarized in the 2017-2018 Budget Comparison by Fund document to follow.
2017 Budget Expenditures
General Fund: $ 12,812,464 $ 10,905,429 $ (1,907,035)
Special Revenue Funds:
Road & Bridge Fund $ 7,892,535 $ 9,145,611 $ 1,253,076
Retirement Fund - - $ -
Landfill Fund 746,443 694,443 $ (51,999)
Airport Fund 57,539 88,654 $ 31,114
Emergency 911 Fund 147,500 142,500 $ (5,000)
Conservation Trust Fund 22,200 84,700 $ 62,500
Library Fund 742,185 523,130 $ (219,056)
Senior Citizens Fund 254,304 224,196 $ (30,108)
Telecommunications Fund 27,900 27,900 $ -
M offat County Tourism Association 144,800 150,000 $ 5,200
Jail Fund 2,986,019 2,963,427 $ (22,592)
Social Serv ices Fund 5,705,885 5,810,926 $ 105,041
Museum Fund 289,662 254,092 $ (35,570)
Moffat County Local Marketing Dist 225,000 280,000 $ 55,000
Subtotal Special Revenue Funds: $ 19,241,972 $ 20,389,579 $ 1,147,607
Capital Project Funds:
Capital Projects Fund $ 165,000 $ 64,000 $ (101,000)
Subtotal Capital Project Funds: $ 165,000 $ 64,000 $ (101,000)
Debt Service Funds:
Lease-Purchase Fund $ 771,463 $ 733,163 $ (38,300)
Subtotal Debt Service Funds: $ 771,463 $ 733,163 $ (38,300)
Internal Service Funds:
Health & Welfare $ 3,743,893 $ 3,768,939 $ 25,046
Internal Serv ice 12,100 12,100 $ -
Subtotal Internal Service Funds: $ 3,755,993 $ 3,781,039 $ 25,046
Maybell Waste Water Treatment Facility $ 44,153 $ 36,154 $ (8,000)
Subtotal Enterprise Funds: $ 44,153 $ 36,154 $ (8,000)
Housing Authority $ 739,937 $ 751,603 $ 11,666
The M emorial Hospital 48,618,933 60,373,587 $ 11,754,654
Shadow Mtn Local Improv ement Dist 53,301 43,322 $ (9,979)
Subtotal Component Units: $ 49,412,171 $ 61,168,512 $ 11,756,341
Total All Funds
$ 86,203,217 $
The 2018 Budget submitted is based upon current and projected economic conditions. Moffat County will balance the current level of services and fund capital projects/equipment with the necessary amount of reserves.
BASIS OF ACCOUNTING & BUDGETING
Basis of accounting refers to the point at which revenues, expenditures, or expenses are recognized in the accounts and reported in the financial statements.
Moffat County uses the modified accrual basis of accounting for all governmental funds. Under the modified
a ccrual basis of a ccounting, revenues are rec orded when susceptible to accrual; i.e., both measurable and available. “Available” revenue means collectible within the current period or soon enough thereafter (60 days)
to be used to pay liabilities of the current period. Expenditures are generally recognize d when the related liability is incurred. The exception to this general rule is that principal and interest on general long -term debt and compensated absences are recorded only when payment is due.
Moffat County uses the accrual basis of accounting for all proprietary and fiduciary funds. Under the full accrual basis revenues are recognized when earned and expenses are recognized when incurred, regardless
of the timing of the related cash flows.
Moffat County adheres to the provisions of the Local Government Budget Law of Colorado as set forth in Colorado Revised Statutes (C.R.S 29 -1-101 et seq.) in preparing its budget for the fiscal year which begins January 1 and concludes December 31. The adopted budget is balanced with expenditures not exceeding
anticipated revenues and beginning fund balances.