FY 25 Adopted Budget | Page 15

The Town of Garner prepares , adopts , and administers its budget in accordance with the North Carolina Local Government Budget and Fiscal Control Act . This act establishes responsibilities and deadlines for the various phases of budget preparation and adoption ( as outlined in the budget calendar which follows ) and mandates availability of the budget document for public inspection , a public hearing on the budget , and , most importantly , adoption of a balanced budget .

Budgeting & Accounting Basis

In accordance with the North Carolina Budget and Fiscal Control Act , the budget is developed and adopted under the modified accrual basis of accounting , whereby revenues are recognized in the period they become available and measurable , and expenditures are recognized in the period the associated liability is incurred , if measurable , except for outstanding principal and interest on general long-term debt , which is recognized when due . During the fiscal year , budgets are maintained using the modified accrual basis . At fiscal year end , the Town ’ s Audited Financial Statements are prepared using Generally Accepted Accounting Principles , or GAAP . All governmental funds are reported using the modified accrual basis of accounting .

Capital Projects Governmental Major Modified Accrual Modified Accrual

The Town considers all revenues available if they are collected within 90 days after year-end , except for property taxes . Those revenues susceptible to accrual include investments , sales tax , and intergovernmental revenues . On a budgetary basis , revenues are recorded by source of revenue and expenditures are recorded by program , department , function , or project . Expenditures may not legally exceed appropriations at the program level for all annually budgeted funds and at the fund level for multi-year funds .

Revenue sources include ad valorem taxes ( property taxes ), sales taxes and other taxes , intergovernmental revenues , permits and fees , sales and services , investment earnings , other revenues , and other financing sources . Expenditure functions are primarily budgeted at the departmental level but are grouped into seven primary categories : general government , public safety , transportation , solid waste and recycling , cultural and recreational , development services , and debt service .

Each year the budget ordinance adopts revenue and expenditure figures for Town operations known as the General Fund . Capital Project Funds , which track the financial resources used for the acquisition and construction of major facilities and infrastructure , typically span more than one fiscal year . Project ordinances are adopted at any time throughout the fiscal year as needed to support the activities of Capital Project funds . For a more expansive discussion of the Town ’ s system of budgeting and accounting , see the Council Adopted Fiscal & Budgetary Policy Guidelines .

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