Page 27 - Keller FY20 Approved Budget

OVERVIEW OF THE BUDGET PROCESS/BUDGET CONTENTS

The annual operating budget for the City of Keller (the City) is the result of many hours of
deliberation by both City staff and the City Council. This guide is included to provide the reader with
an overview of the budget document, the budget process, budget implementation, and an overview
of the document.

Organization of the budget document is designed to help the reader locate information, both
financial and non-financial, in a timely manner.

BUDGET PREPARATION PROCESS

In mid-March, the budget process for the upcoming fiscal year begins. The Finance Department
prepares and distributes budget preparation instructions and forms to each department to assist in
the budget preparation and formulation. The budget instructions include expenditure request forms,
current personnel staffing levels by position and other information necessary to complete budget
requests. Departments are instructed to prepare budget requests in accordance with the Council’s
goals and objectives, which were established at the City Council budget goal-setting workshop
held in March.

Upon completion and submission of budget requests by the departments, the Finance Department
then processes and compiles the budget requests and line-item expenditure details for review by
the City Manager. The City Manager then reviews each departmental expenditure request and line-
item expenditure details, and current year estimates, with the respective department manager and
staff. Over a period of three to four weeks, the City Manager makes revisions and modifications
to the original departmental requests, if needed, and current year estimates, in order to arrive at a
final proposed budget. The Finance Department prepares revenue estimates using available
historical data, combined with current-year projections and trend information. The City Manager
also reviews and makes modifications to revenue estimates.

ADOPTION PROCESS

On or before August 15 of each year, the City Manager presents to the City Council a proposed
budget for the next fiscal year. The proposed budget is also filed with the City Secretary, posted
on the City's website, and placed in the Keller Public Library for public review and inspection. The
City Council and staff then hold a public budget review work session, at which specifics of the
proposed budget are considered, discussed and prioritized. As a result of Council direction, some
adjustments may be made to the proposed budget. These adjustments are then incorporated into
an amended proposed budget.

After the work session, the City will begin the public hearing process for budget adoption. Notices
of public hearings for budget and tax rate adoption will be placed in the paper. Two public hearings
on the budget are required by City Charter, however, the second public hearing can be held on the
night of adoption. If the City is proposing a property tax rate under the lower of the effective or the
rollback rate, then no public hearing on the tax rate are required. If the proposed tax rate is above
the lower of the effective or rollback rates, then state law requires that the city hold two public
hearings on the tax rate in order to adopt prior to the date of adoption. In addition, the city must
also publish the proposed tax rate and notices of a vote on the rate if it is higher than the effective

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