A municipal budget is a financial plan that details the level of spending needed to bring municipal services to the community while maintaining municipal resources by maintaining a clear balance between assets and liabilities. The budget document allows the mayor and council to make decisions regarding the services they provide to the community in the municipality. It serves as a guide for infrastructure development programs and the management process. The budget is also ultimately used to determine whether a tax increase is necessary. The annual budget of the City of Red Lake presented for the year 2014 presented an adequate picture of the entity. Budget structures consist of one to four budget levels that correspond to increasingly detailed budget levels in the structure where each budget structure has its own attributes. A budget structure has several budget levels. A budget level is composed of one or more parts of account items that are grouped together and define the individual budgets at that level. The budget structure defines the framework in which individual budgets are established, controlled and monitored. It is composed of the budget levels that define the budget hierarchy of the structure. The Red Lake municipal budget adopts the cost accounting budget structure. These are budget structures established and managed by departments with the exception of the capital expenditure structure maintained by the ANF. The ANF establishes capital expenditure during the fiscal year by providing the structure of capital expenditure. The various departments that make up the entity establish program budgets. The departments also establish the reimbursable amounts...... middle of paper......fast in a clear way. The availability of multiple sources of funding for the municipality means that it is able to diversify its sources of income which in turn makes it very secure by eliminating the risk that comes with having a single source of income for an entity's operations. Increasing service provision indicates increasing the capacity of the municipality to a level where it can provide the necessary services while maintaining the surplus. The increase in the overall budget is an indicator of growth in the capacity and size of the municipality. The overall budget increased from 23,086,836 in 2014 which was up from 23,086,836 in 2013. However the budget is also slightly lower than the 26,206,068 in 2012. The increase in budget size indicates an increase in capacity and size as it is accompanied by expansion and size.