Page 22 - Kennedale Budget FY21

THE BUDGET PROCESS

The development of the Annual Budget and Program of Services is governed by formal policies, accepted
practices, and the City’s budget principles – foremost of which is a balanced budget where revenue is equal
to or greater than operating expenses and maintenance capital, with unassigned fund balance being utilized
for one-time capital purchases or street repair. The budget process is designed to meet the needs of the
community by allocating sufficient resources to support the planning and implementation of services,
programs, and objectives. The budget framework is built with the following purposes in mind:
 Establishes a plan of policy and operation, which allocates resources of the City to achieve
specific city goals and objectives and guides the City’s activities;

 Provides management information as a comprehensive recording of information relative to
both the character and scope of city activity; and,

 Establishes financial control by controlling through prioritization of programs/projects the
allocation of revenue to various activities and allowing public officials, administrators, and
citizens to ensure legality, accuracy, and conformity to legislative and administrative
standards.
A primary goal of this document is to present the information in such a way that it will all at once be useful
to the residents we serve as well as providing sufficient detail regarding financial, program, and policy

information to guide the departments in program performance and to assist the administration and public
officials in program evaluation and monitoring. The budget cycle consists of three distinct phases:

D e v e l o p m e n t a n d P r e p a r a t i o n
Each Director develops and submits to the Finance Department initial budget requests, which are based on
standing and newly-proposed services and programs to meet the needs expressed by the public and the goals
of the Mayor and Council. The Finance Director and the City Manager meet with each Director to review
new program requests, compare projected revenues against proposed expenditures, and to prepare a
preliminary budget. The City Manager then refines this Preliminary Budget and develops the City

Manager’s Proposed Budget, which is presented to the City Council.

R E V I E W A N D A D O P T I O N
The Council reviews the Proposed Budget, holds public hearings, and provides input and direction to staff
before adopting the budget and the supporting property tax rate for the fiscal year.

I m p l e m e n t a t i o n
Throughout the fiscal year, the City Manager and Finance staff implement and monitor the Adopted
Budget. Included services, programs, and projects are carried out by departments with oversight from the
Finance Office. Monthly financials are provided to the Council to provide a status report on revenues and

expenditures. The Finance Office also reviews and approves all check requests and requisitions for ac-
curacy. Directors are expected to hold expenditures to the approved budgeted amounts. However,
sometimes unforeseen circumstances call for budget amendments during the fiscal year. Any amendment
must also be approved by the Council.

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