Page 60 - Burleson FY22 City Budget

IV. OPERATING BUDGET.

A. PREPARATION. Budgeting is an essential element of the financial planning, control, and evaluation process of municipal
government. The City's "operating budget" is the City's annual financial operating plan. The scope of the budget includes
all funds for which the City will adopt a formal budget, including Government Funds, Proprietary Funds, and Fiduciary
Funds.

1) Budgetary Process. The budget is prepared by the City Manager or his/her designee with the cooperation of all City
Departments. The budget should be presented to the City Council between 60 and 90 days prior to fiscal year end,
and should be enacted by the City Council prior to fiscal year end in accordance with the Charter.

2) Awards. If feasible, the operating budget will be submitted to the GFOA annually for evaluation and consideration
for the Award for Distinguished Budget Presentation.

3) Basis of Budgeting. The basis of budgeting will be the same as the basis of accounting; that is, that budgets for the
General Fund and the Special Revenue Funds are prepared on the modified accrual basis of accounting, and
budgets for the Utility (Proprietary) Funds are prepared on a full accrual basis, except that capital purchases and
depreciation are not adjusted until year-end financial reporting.

4) Financial Forecast. A five-year financial forecast shall be prepared annually, projecting revenues and expenditures
for all operating and capital funds. This forecast shall be used as a planning tool in developing the following year’s
operating budget.
5) Proposed Budget Format. A proposed budget shall be prepared by the Manager with the participation of all of the
City’s Department Directors, within the provisions of the City Charter. The budget shall include at least four basic
segments for review and evaluation. These segments are: (1) personnel costs, (2) operations and maintenance
costs, (3) capital and other (non-capital) project costs, and (4) revenues. A four column format should be used such
that prior year actual, current year budget and revised, and next year proposed are all clearly shown.

6) Council Participation. The budget review process shall include Council participation in the development of each of
the four segments of the proposed budget and a Public Hearing to allow for citizen participation in the budget
preparation. The budget process shall span sufficient time to address policy and fiscal issues by the Council. The
budget process will be coordinated so as to identify major policy issues for City Council consideration prior to the
budget approval date so that proper decision analysis can be made.

7) Filing and Adoption. Upon the presentation of a proposed budget document acceptable to the Council, the Council
shall call and publicize a public hearing and adopt by Ordinance such budget as the City's Official Budget, effective
for the fiscal year beginning. A copy of the proposed budget shall be filed with the City Secretary in accordance with
the provisions of the City Charter. Should the Council fail to take final action on or before the last day of the fiscal
year, the budget as submitted by the City Manager shall be deemed to have been finally adopted by the City Council.
8) Amending the Official Budget. The council may amend the budget for municipal purposes in accordance with state
law.

9) Encumbrances. Encumbrances outstanding at the end of each fiscal year shall be reflected as reservations of fund
balance. Subsequent year's payments on previously encumbered funds will be reflected as expenditures in the
current year. For Encumbrances that are brought forward from the previous year, budgets iwill be adjusted by the
encumbered amount in the current year .

B. BALANCED BUDGET. The operating budget will be balanced with current revenues and other resources greater than
or equal to current expenditures/expenses. Use of beginning balances and other reserves to balance operations will be
disclosed in the document with the underlying rationale.

C. REPORTING. Monthly financial reports will be prepared to enable the Department Managers to manage their budgets
and to enable the Finance Director to monitor and control the budget as authorized by the City Manager. Summary

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