Municipal finances
The planning and control cycle is a series of steps to plan and manage municipal money. It begins with creating a budget and ends with reviewing the financial statements. In between, documents such as the framework letter, summer and November notes are used to make adjustments.
The college of B&W regulates and does what is necessary, and tells the city council what they have done, according to the rules established. According to the Dualization of Municipal Government Act, it is the job of the municipal council to make rules and see that everything is going well with municipal money.
Budget
The municipal budget is the document that contains the proposed municipal expenditures and revenues. After adopting the budget, the college implements policies within the financial and policy limits specified. The budget is always adopted by the council during general considerations in November.
Framework Letter
In May/June, the college prepares the framework letter. The framework letter provides a first outline for next year's budget. An important source here is the May Circular of the Municipal Fund. The May circular contains the forecasts for the development and distribution of the general allowance and budgets of the State for the three decentralizations. In an election year, the framework letter expires. A handover document is then produced by the outgoing college for the new college. Furthermore, in an election year, the coalition agreement is usually the starting point for the following year's budget.
Financial Statements
In the financial statements, the college explains to the council what happened to the previous year's money. This is done in the spring. The council can then see if the college used the money as was agreed upon in the budget. The council also looks at whether the college acted smartly and effectively. Did the college do what it had to do and achieve what it wanted to achieve?