Page 25 - Forest Hill FY22 Annual Budget

BUDGET POLICIES

The City of Forest Hill budget format includes goals, objectives and performance measures. Various
summaries, statistical information, and revenue sources are provided to help define the City's goals,
purposes, and assumptions for projections. The budget document and organization of the budget are
described below.

Budget Process

The City of Forest Hill has implemented a performance based budgeting process. Each department prepares
a budget by completing a budget workbook. Any operating expense, which exceeds the prior years' funding
level, is evaluated and a recommendation to the City Manager is made.

Department Budget Workshops

During the departmental budget workshops, the staff is informed of the budgeting concepts, guidelines and
forms.

Revenue Projections

The City Manager makes revenue projections. Projections are made based upon consultations with state
and local agencies, trend analysis, anticipated changes in the local and regional economy, and discussions
with directly associated Staff members. The budget revenue projections occurs concurrently with
departmental budget development and extends until the budget is adopted based upon the receipt of any new
information.

Proposed Budget Compilation

Once the departmental budget requests are completed and are reviewed by the City Manager, a preliminary
draft of the proposed budget is prepared by the City Manager and submitted to the City Council for review
and reference during budget workshops. At this time the funding level is weighted against available
resources. A tax rate may or may not be recommended depending upon Council's priorities and issues
previously expressed in the budget process.

City Council Budget Workshops

Recommendations concerning the proposed budget are discusses with the City Council. The proposed
budget is not actually submitted until after initial discussions regarding major issues are presented to the
Council.

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