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City Of Yorba Linda Essay

5195 words - 21 pages

ACC 4291
INTEGRATED CASE STUDY

TERM PAPER
CASE: CITY OF YORBA LINDA, CALIFORNIA

PREPARED BY
Wafa’ Bt Zaharudin (1025250 )

PREPARED FOR
Lecturer : Assoc. Professor Dr. Nik Nazli Binti Nik Ahmad

NO. | CONTENT | PAGE NUMBER |
1. | EXECUTIVE SUMMARY | 3 |
2. | PROBLEM STATEMENT | 5 |
3. | FORMULATE THE ALTERNATIVES | 5 |
4. | ANALYTICAL TOOLS | 6 |
5. | EVALUATION OF ALTERNATIVES | 12 |
6. | FINAL DECISION & RECOMMENDATION | 13 |
7. | QUESTIONS & ANSWERS | 15 |
8. | REFERENCE | 17 |
TABLE OF CONTENT

EXECUTIVE SUMMARY
The city of Yorba Linda which is located in northern Orange County, California was incorporated in 1967 as a general law ...view middle of the document...

The main purpose for this budget is to provide city managers with the authority to make expenditures and to control over the expenditures by providing comparison between the actual and budgeted. Besides, they also required cities to main reserves to ensure a balanced budget even when faced with nonrecurring expenses. As for Mr. Simonian, he had three goals for the city’s budgeting process, which are to ensure that the budget is easy for members of the City Council to understand, to ensure that the budget is understandable by the members of the community, and to encourage the city department directors to analyze current and projected activities.
In 1986, Mr Simonian implemented a multiyear budgeting approach to replace the line item budget that had been used for many years. This budget was designed to facilitate the setting of policies and priorities. During the year, several changes were made to the budgeting process and budget content for the 1991-1993 cycle. The changes were, first, all department managers responsible to come out with their expenditure projections. Second, a budget manual was distributed to assist department personnel to prepare the budget. Third, the prepared budget must be in details including the purposes, accomplishments, objectives, and criteria of their proposed activities. Fourth, the budget calendar was expanded to allow managers more time to define their budget.
There are two types of processes in preparing the budget for City of Yorba Linda which are revenue projections and expenditures projections. The revenue projections were made by their finance director, Gordon Vessey. He highlighted that the revenue were expected to decline from fiscal year 1991. However, the city manager’s office was pursuing four major initiatives to increase general fund revenues. In the other hand, the expenditure projections were prepared by the department’s directors. Mr. Simonian stated that the initial expenditure budget submission was too high. Then, the potential reductions were discussed in a series of management meetings. The proposed budget contained several significant changes in the operating expenses of the City Council, city manager, city clerk, police and Parks and Recreation department. As a whole, the city expenditures proposed was decrease between cycles respectively.
Then, the proposed budget will be presented by Mr. Simonian to the City Council members to get their approvals. During the meeting, John Gullixson one of the members voice out his disagreement regarding the increment of cost on the police services. But then Mr. Simonian justified that he believed the proposed budget was an acceptable figures. But there was no action taken regarding the disagreement from John Gullixson. Even after the second meeting, the objection was still neglected by them. They just precede the budget by having four favourable votes and with Mr. Gullixson abstaining.

PROBLEM STATEMENT
In this case, Mr. Simonian is the decision...

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