Page 22 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

Budget Policies

The City of Forest Hill budget format includes 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 a 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 provides to the City Manager regarding priorities and areas, which
may need improvement, or funding. City Council budget issues are discussed at
budget workshops. Council responses and feedback from discussions are then used
during further budget reviews.

Departmental Budget Workshops

During the departmental budget workshops, the staff is informed of the budgeting
concepts, guidelines and 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
Council’s priorities and issues previously expressed in the budget process.

City Council Budget Workshops
Recommendations concerning the proposed budget are discussed with the City
Council. The proposed budget is not actually submitted until after initial discussions
regarding major issues are presented to the Council.

Page 21 of 90