Page 28 - Keller FY20 Approved Budget

OVERVIEW OF THE BUDGET PROCESS/BUDGET CONTENTS

tax rate or the rollback rate. The Effective tax rate is the rate at which the city receives the same
tax levy amount from the same properties that exist in the current year and does not include levy
from new development. Usually, this number is higher because of property value growth. The
Rollback rate is the effective tax rate for operations and maintenance multiplied by 1.08 plus the
proposed debt tax rate.

At the conclusion of that public hearing on the proposed budget, the City Council adopts the final
budget by ordinance, including any additional adjustments that may have been made as a result of
the public hearing. Subsequent to the adoption of the budget, a separate ordinance is adopted,
establishing the tax rate necessary to fund the City’s operations and debt service requirements. If
the proposed budget will have an increase in property tax revenue, not rate, then Council must also
make a separate motion to ratify the property tax increase in the budget.

After adoption, the Finance & Accounting Department creates an Adopted Budget Book which is
made available on the city’s website, with the City Secretary and at the Library. The Adopted
Budget is also submitted to the Government Finance Officers Association for review and possible
award of the Distinguished Budget Presentation Award.

IMPLEMENTATION PROCESS

On October 1 of the fiscal year, the budget is implemented into the accounting software system.
Departments must operate within their adopted budgets. Budgetary control is established and
maintained after adoption of the budget by the preparation of quarterly revenue and expenditure
statements, which are provided to the City Manager and to Council.

BUDGET AMENDMENT PROCESS

In accordance with Article VIII, Section 12 of the Keller Charter, the City Council may amend the
budget by ordinance. If an increase in total expenditures is necessary to protect the public property
or the health, safety or general welfare of the citizens of Keller, the total budget may be increased
after the notice and public hearing (as prescribed for the adoption of the original budget).

Department Heads may request a line-item transfer, if it does not change the total dollar amount of
the departmental budget.

YEAR-END PROCESS

After the fiscal year is completed, the city contracts with an independent auditor to review the city’s
financial statements. The auditor reviews expenditures, revenues, and fund balances to ensure that
all are accurate. Upon completion of the audit, the Comprehensive Annual Financial Report (CAFR)
is created and published. The CAFR provides audited financial statements for all major funds and
provides statistical data regarding the city.

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