What is typically the first action when starting to develop a department budget?

• A. Find out what money is available
• B. Call other agencies and use their budget figures
• C. Plan your projected costs
• D. Submit a cost estimate to the city record for a cost breakdown

Answer: (C)

Planning projected costs is the starting point because it defines what the department expects to spend to deliver its programs and services. By outlining needs across categories—personnel salaries and benefits, equipment and vehicles, facilities, utilities, training, maintenance, and contracts—you estimate quantities, unit costs, and timing, while accounting for inflation and any planned changes. This creates a clear picture of the funding required and helps set priorities. Once you know the expected costs, you can assess what funds are actually available, identify gaps, and determine what adjustments or additional funding are needed. Other steps, like trying to match figures from other agencies or submitting formal cost estimates, fit into the process after the cost plan is established and validated.