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 not budget to accrue future revenues. The Township will avoid balancing current revenues with funds necessary for future expenses. The Township will pay for current expenditures with current revenues. The Township’s other funds may be unbalanced based on the timing of timing of revenues and expenditures. 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 will always adopt a balanced budget for the General Fund.
These policies are most critical to programs funded with property tax revenue because accommodating large fluctuations in this revenue source can be difficult.
The policies allow the Township to maintain a stable level of service, expenditures and tax levies over time. 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.
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