Page 25 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

The proposed operating budget shall appropriate sufficient funds for operations to
maintain existing quality and scope of City Services.

The basis of budgeting shall be modified accrual in the Governmental Funds and
modified accrual (working capital) in the proprietary funds.

An annual budget calendar shall be prepared including statutory public meeting and tax
notice requirements.

Specific City Council action shall be required to amend the operating budget.

Where possible, the City will integrate performance measurement, service level, and
productivity indicators in the City’s published budget document.

Capital Budget Policies

Non-recurring capital expenditures are budgeted as debt funded or operating accounts
if minor.
Operating expenditures that are incurred from non-recurring capital expenditures are
included and anticipated in each operating fund’s budget.

Definition of a capital project- a capital asset expected to have a useful life greater than
two years and an estimated cost of $5,000 or more. Capital projects include the
following:

• Construction, purchase, or major renovation of buildings, utility systems, streets,
intersections, or other structure
• Purchase of land or land rights and major landscaping projects;
• Any engineering study or master plan needed for the delivery of a capital project;
• Any major repair, renovation or replacement that extends the useful operational
life by at least two years or expands capacity of an existing facility.

Projects meeting the above definition will be included in the Capital Improvement Plan
(CIP) rather than the annual operating budget document.

As a planning document, the City shall adopt annually the first year of a five year rolling
projection of the City’s capital needs as well as the future financing requirements in the
form of a CIP.

The CIP shall be linked to the City financial and strategic plans.

As a planning document, the CIP does not impart any spending authority.

Spending authority for capital projects is the capital budget.

The capital budget shall include only capital projects with budgets appropriated by
specific City Council action. Capital project budgets shall be appropriated on project by
project, multi-year basis (project budget amounts are approved through completion of
the project).

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