The most accurate way to plan is to decide which services and activities will be provided. Then look at what will be the expected price. There are expenses that are either fixed or variable in nature. The fixed costs are those that are required due to laws, the constitution, or existing contracts. The variable items come from what a local is determined to provide for its constituency. Under the variable heading there should be a contingency line for unexpected items that will occur. After completing all these details, the total expenditure's bottom line is compared with the total income to determine what is the result. The outcome will be a budget surplus, a balanced budget, or a deficit.