Page 35 - Microsoft Word - Budget FY 19

CITY OF FOREST HILL

Budget Policies

The Summary of Significant Budget Policies provides an overview of the City of
Forest Hill’s budget process and budget documents. Also included at the end of
this document are a glossary of budget terms and a chart of accounts.

The City of Forest Hill has prepared a budget format to include goals, objectives
and performance measures. Various summaries, statistical information, and
revenue sources are provided to help define the City’s goals, purposes, and
assumptions for projections. The budget document and organization of the
budget are described below.
THE BUDGET PROCESS
Budget Process

The City of Forest Hill has implemented a performance based budgeting
process. Each department prepares their budget by completing a budget
workbook. Any operating expense, which exceeds the prior years’ funding
level, is evaluated and a recommendation to the City Manager is made.

Development of City Council Goals

The City Council is requested to provide Staff information regarding priorities
and areas, which may need more attention, or funding. City Council budget
issues are discussed at budget workshops. Council responses and feedback
from discussions are then later considered during further budget reviews of
requests.

Departmental Budget Workshops

During the budget workshops the staff is informed of the budgeting concepts,
budget guidelines and budget request forms.

Revenue Projections

The City Manager makes revenue projections. Projections are made based
upon consultations with state and local agencies, trend analysis, anticipated
changes in the local and regional economy, and discussions with directly
associated Staff members. The budget revenue projections occurs concurrently
with departmental budget development and extends until the budget is adopted
based upon the receipt of any new information.

Proposed Budget Compilation

Once the departmental budget requests are completed and are reviewed by the
City Manager, a preliminary draft of the proposed budget is prepared by the City
Manager and submitted to the City Council for review and reference during
budget workshops. At this time the funding level is weighted against available
resources. A tax rate may or may not be recommended depending upon

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