Page 163 - Microsoft Word - Budget FY 19

Budget: A financial plan for a specified period of time (i.e. a fiscal year) that includes all planned
expenditures for various municipal services and the proposed means of financing them.

Budget Adjustment: A legal procedure utilized during the fiscal year by the City staff and City Council to
revise a budget appropriation. The City of Forest Hill's City Charter requires City Council approval
through the adoption of a supplemental appropriation ordinance (which specifies both the source of
revenue and the appropriate expenditure account) for any inter-departmental or inter-fund adjustments.
City staff has the prerogative to adjust expenditures within a departmental budget.

Budget Calendar: The schedule of key dates or milestones which the City departments follow in the
preparation, adoption and administration of the budget.

Budget Document : The instrument used by the City staff to present a comprehensive financial program
to the City Council.

Budget Message: The opening section of the Budget Document that provides the City Council and the
public with a general summary of the most important aspects of the budget, changes from the current
and previous fiscal years, and the views and recommendations of the City Manager. The Budget
Message is also referred to as the City Manager's Message or Budget Transmittal Letter.

Budget Re-estimate: Process of taking year-to-date financial information, using that information to
project future financial performance for the remainder of the fiscal year, then comparing the result to the
fiscal year budgeted amount as a way to gage financial performance. The re-estimate process takes
place throughout the fiscal year for most funds.

Budgetary Control: The control or management of a governmental unit or enterprise in accordance with
an approved budget for the purpose of keeping expenditures within the limitations of available
appropriations and available revenues.

Budgeted Funds: Funds that are planned for certain uses, but have not yet been formally or legally
appropriated by the legislative body. The budget document that is submitted for City Council approval is
comprised of budgeted funds.

Capital Project Budget: The portion of the annual operating budget that appropriates funds for the
purchase of capital equipment items. These expenditures are often separated from regular operating
items, such as salaries, services, and supplies. The Capital Equipment Budget includes funds for capital
equipment purchases, which are usually distinguished from operating items according to their value and
projected useful life. Examples include vehicles, minor equipment, furniture, machinery, building
improvements, and special tools. The dollar value varies according to the policy established by each
jurisdiction. For the City of Forest Hill, this limit is $5,000.

Capital Improvement Program: A plan for capital expenditures to provide long-lasting physical
improvements to be acquired over a fixed period of years.

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