Definition: The definition is “Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zero-based budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs. The budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.” 

The administrative team utilizes a Zero-Base Budgeting (ZBB)” with some modifications. We ask the Department Heads (Function) to develop their request at the line item level each year.  The Enhancement form is completed to justify a significant increase to line item expenses other than those explained by inflation. Enhancements include, but are not restricted to additional FTE to current staffing level, funding for an Operating Project, Asset Management, Equipment, and new/replacement vehicles.  

• As we hold departments to very strict spending controls in order to balance the budget, we add an Operational contingency for unexpected needs, emergency costs, or Council-driven priorities. 
• Overtime is based upon historical trends and known adjustments.
• In the FY22 Budget, Council asked that we begin to include $25,000 in each Utility Fund to seed the Capital Reserve Fund. 

Please note that a historical comparison by line item is provided to the Departments for their reference.  However, historical costs may include one-time items that are not required for the next budget year.