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Appendices

BUDGET PROCESS
The following describes the preparation, development and adoption of the City’s annual budget.

Pre‐Planning Phase: After the first quarter of the fiscal year, departments submitted current-year revenue and
expenditure estimates to the Office of Management and Budget (OMB), which prepared a first quarter Budget Analysis Report
(BAR). This is the first look at current-year expenditures and revenue estimates compared to budgeted amounts. After the first
quarter BAR, departments begin to set priorities for the next fiscal year including preparation of preliminary new program
requests and justifications.

Council Planning Session: Staff hold a day-long retreat with Council members to determine what their priorities for
the upcoming fiscal year will be.

Budget Kick‐off: At this late April/early May meeting, departments received an overview of the financial position of the
City, and forms and reports necessary to prepare formal new business plan requests. They also received a Target Number,
which is the maximum amount they are authorized for their base budget submissions. Additionally, departments received a
calendar indicating significant dates for budget meetings and deliberations.

Preliminary Council Review: The City Manager briefed the City Council on the FY 2020 Preliminary Budget,
including revenue and expenditure estimates.

Office of Management and Budget Review: The Deputy City Managers met with department heads,
managers, department analysts, and the Office of Management and Budget to discuss current-year estimates and next-year
requests.

Third Quarter Budget Analysis Report: After budget submittal, departments submitted third quarter revenue
and expenditure estimates. The OMB prepared a second quarter BAR analyzing variances for the City Manager’s Office.

City Manager’s Review: The City Manager met with the Deputy City Managers and the OMB. The City Manager
reviewed BPPs and determined which ones to include in his proposed budget.

City Manager Presentation to City Council: On the first Tuesday in August, the City Manager presented his
proposed budget to City Council. The Manager’s Message outlines business plan additions.

Public Hearings: During August, Town Hall meetings were held to receive public comments regarding the proposed
budget. A public hearing was conducted in September on the proposed budget, in accordance with applicable provisions of
state law.

City Council Deliberations: Over the summer the City Council reviewed the budget. During this time, citizens were
able to address Council about specific issues. Also, during this time, Council was able to amend the budget to include programs
considered a high priority.

Tax Rate: State law requires the calculation of “effective” and “rollback” tax rates. The “effective” rate is that rate which
generates the same revenue in the proposed year as in the current year from properties on the tax roll in both years. The
“rollback” rate is a rate that represents an eight percent increase in the operations/maintenance portion of the total tax rate.
These rates were provided to Council.

2020 Adopted Budget and Business Plan 278 City of Arlington, Texas