Page 27 - Fort Worth City Budget 2019

Processes and Policies

Budget Process

Creation of the Budget

The annual budget process commences in the winter of the preceding year, with the City Council retreat. The City
Council establishes city goals and provides the information to executive staff. Executive staff then creates the city
budget calendar. The calendar establishes the timelines for the process, including the date of submission of
departmental requests, budget work sessions and public hearings that lead to the final adoption of the budget.

Department requests are based on the organizations budget assumptions. Before considering budget increases
or savings, the “base budget” is developed. The base budget is generally defined as the cost of providing the same
service, at the same service level, in the next fiscal year. The Performance and Budget Department creates a target
base budget for each department. The target is based on numerous factors, including salary projections,
annualizing prior year commitments, removal of one-time costs from the prior fiscal year and other factors. After
the target is established, department staff may modify the amounts within the target total, but are to submit an
operating budget delivering the same service level or greater at or below the budget target.

Departments may submit proposed increases or decreases to service levels and budget requests along with
supporting documentation. The requests are reviewed and subsequently approved, denied, or modified for
inclusion in the adopted budget.

City Council Authorization / Appropriation
In compliance with the Fort Worth City Charter, the city manager must submit to the City Council a recommended
balanced budget that provides a complete financial plan for all city funds and activities for the ensuing fiscal year,
on or before August 15th of each year. The budget is required to be adopted by the City Council prior to September
30, before the start of the next fiscal year. The City of Fort Worth traditionally adopts the budget in the middle of
September.

City Manager’s Authorization

For those funds for which annual budgets are adopted, appropriations are budgeted and controlled on a functional
basis and are amended as necessary during the fiscal year. The city manager is authorized to transfer budgeted
amounts within designated funds through delegated authority. Revisions that alter the total appropriations of any
fund and department that is not covered through delegated authority must be approved by the City Council.

Budget Implementation & Monitoring

Once the budget is adopted in September, it becomes the legal basis for the programs of each department of the
City during the upcoming fiscal year. No department or other agency of the city may spend more than the
appropriated amounts. Financial and programmatic monitoring of departmental activities throughout the year
ensure conformity to the adopted budget. Unencumbered appropriations lapse at the end of the fiscal year and
are returned to fund balance, in rare circumstances these funds may be re-appropriated in the subsequent fiscal
year for the same purpose by City Council. The city manager is responsible for maintaining a balanced budget at
all times. If there is an excess of expenditures over revenues or appropriations, the city manager will take
necessary actions to rebalance the budget.

The city conducts comprehensive forecasts of revenues and expenditures for the fifth and eighth month of the
fiscal year. This forecast is used to assist in budget development, budget monitoring, and performance

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