Operating Budget Policies


The operating budget policies ensure that the Township's annual operating expenditures are consistent with past expenditures and respond to long-term objectives rather than short-term benefits. The policies allow the Township to maintain a stable level of service, expenditures and tax levies over time. These policies are most critical to programs funded with property tax revenue because accommodating large fluctuations in this revenue source can be difficult.


The Township will always adopt a balanced budget for the General Fund. The definition of a balanced budget is that budgeted revenues equal budgeted expenditures and thus, creating no change to the fund balance for the fund. The Township’s other funds may be unbalanced based on the timing of timing of revenues and expenditures.

The Township will pay for current expenditures with current revenues.

The Township will avoid balancing current revenues with funds necessary for future expenses.

The Township will not budget to accrue future revenues.

Left over revenue from a given fiscal year will be placed into the Township’s reserves according to the Township’s reserve policies.

The Township will avoid postponing expenditures, rolling over short-term debt and using reserves to balance the operating budget.

To protect against unforeseen events, the Township will budget a contingency and maintain reserves according to the Township’s reserve policies.

The Township will apportion its administrative and general government costs to all its funds as appropriate and practical. These charges will be identified in the annual budget.

The Township staff will monitor revenues and departmental expenditures to adhere to their budgeted amounts. Line items within an activity may be overspent as long as the total activity budget is not overspent. Only with Town Board approval can an activity be overspent and only if funding is available.