The budget is a fundamental tool used for planning public revenues and expenditures for a specific time period, and it is utilized to manage the financial resources and assets of the state. It helps ensure that funds are used efficiently and responsibly in accordance with established goals and priorities and to meet public needs. Budget planning ensures that these needs are met at both the state and local levels. In this study, after explaining the theoretical foundations, the fundamental characteristics of the public funding system in the City of Opatija, as a local self-government unit, for the period from 2018 to 2022, were explored. During the observed period, the City of Opatija directed budget expenditures towards achieving strategic objectives, including digital transition, improving public infrastructure, demographics, and the quality of life for residents, efficient education, environmental protection, and the promotion of entrepreneurship. The most significant source of funding consists of tax revenues, including a portion of income tax, as well as taxes on goods and services. Throughout the observed period, both revenues and expenditures increased, with the City of Opatija recording a budget surplus for most of the time and successfully managing local finances.