Budget Purpose and Process
A budget is a legal document that forecasts the financial resources of the Town and authorizes the spending of those resources on an annual basis. The budget must meet the requirements of Washington state law and the State Auditor’s Office. The approval of an annual budget is one of the most important duties of the Town Council and serves as the financial guidance for the Mayor and Town Staff. The Council reviews the preliminary budget at the line-item level and adopts the final budget at the fund level. There are over 200 line items included in the 8 Town funds. Even though the annual budget is approved, the Town Council still reviews and approves all expenditures monthly. The Clerk-Treasurer submits a quarterly financial report to the Council for their review.
The Town submits an annual financial report to the State Auditor’s Office in late May for the previous year’s revenues and expenditures. The State Auditor’s Office audit’s the Town’s financial activities on a biennial basis to determine whether the financial statements present a reliable, accurate picture of the government’s finances. The State Auditor prepares an audit report that is then presented to the Town Council.