Page 26 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

The capital budget does not run concurrently with the operating budget fiscal year.

City staff shall identify the estimated costs and project schedule for each capital project
proposal before it is submitted to the City Council for approval.
The City Manager shall in writing identify specific available funding sources for each
capital project budget proposal before it is submitted to the City Council for approval.

Expenditure tracking for components of the capital budget will be updated quarterly to
ensure project completion against budget and established timelines.

Change orders resulting in a change in the project cost shall require an amendment to
the capital budget.

Capital improvements may impact the operating budget. Addition of new infrastructure
can lead to expanded programs and a need to hire personnel to manage program
operations. Replacement of aging structures may decrease operating and maintenance
expenditures due to energy efficiencies and reduced repair needs. City staff will
analyze, and when necessary, include operating budget impact statements in the CIP.
Utility Rates

Utility rates will be reviewed annually to adjust operating revenues to meet operating
costs and changes in contractual services.

Budget Administration

City departments will regularly review programs and services to adjust service levels
and operating costs.
All departments will be responsible for exploring the available grant opportunities and
seek those matching City needs.

Basis of Presentation

City accounts are organized on the basis of fund and account groups, each of which is
considered a separate accounting entity.
Governmental Funds Types

The General Fund is used to account for financial resources used for general
operations. This is a budgeted fund and any fund balances are considered resources
available for current operations. All revenues and expenditures not required to be
accounted for in other funds area are accounted for in this fund. The General Fund
appropriations are adopted as part of the annual budget process. The General Fund is
accounted and budgeted on the modified accrual basis.

Special Revenue Funds are used to account for resources restricted to, or designated
for, specific purposes by a grantor. Federal and state financial assistance generally is
accounted for in a Special Revenue Fund. Normally, unused balances are returned to

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