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THE BUDGET PROCESS

The City Charter of the City of Azle establishes the fiscal year as October 1 through
September 30. The Charter requires the City Manager to submit a proposed budget
and accompanying budget message to the council prior to the start of the fiscal year as
soon as is practical and in accordance with state law. The City Council reviews the
proposed budget at workshops and revises it as appropriate prior to general circulation
for public hearings.

The City Manager's Office oversees the preparation of the proposed budget. A budget
calendar is distributed to the City's management team in early March. The budget
process kicks off in March with the distribution of budget materials. Preliminary budgets
are prepared by each department based on the prior three years and current year
spending levels. Departmental requests for capital items, new personnel or programs
require accompanying justification statements.

After a review of the preliminary budgets, the City Manager meets with each department
head to review their proposed budget. Each department head is provided an
opportunity to further explain new requests and to prioritize these requests.

After extensive reviews and revisions, the proposed budget is presented to the City
Council. The Council then conducts sufficient work sessions to review the budget.
Department directors are present during the work sessions to answer questions.
Copies of the proposed budget are made available to the public and the public hearing
schedule is confirmed.

Before the public hearings are held, notices of the public hearings on the proposed
budget and tax rate are posted and published in the newspaper. After the public
hearings, the Council may adopt the proposed budget with or without amendment. The
City Charter requires the budget ordinance is to be adopted in accordance with state
law. The City strives to adopt the budget within a timeline that complies with state law
and the City’s charter. The Council normally adopts the tax rate ordinance at the same
meeting as the budget ordinance.

THE BUDGET AMENDMENT PROCESS

The budget is normally reviewed in April and May of each year in order to determine if
revenues and expenditures are in line with original projections. In the event revenues
are below projections or expenditures appear to be exceeding projections due to
unforeseen events, then the budget may be amended. The City Charter provides for
amending the budget and altering appropriations.

A public hearing is held and the budget is amended by ordinance presented to the City
Council. A majority of the Council must approve the amendment ordinance. After
approval, the ordinance becomes an amendment to the original budget.

City of Azle 2020-2021 Budget 20