Page 31 - City of Mansfield FY22 Operarting Budget

BUDGET PROCESS

The budget process is the key to the development of the City of Mansfield’s overall strategic plan and
affords individual departments the opportunity to reassess goals and objectives, evaluate programs using
performance measurement data and develop strategies to accomplish them. Even though the budget may
be reviewed by the City Council in July and August and adopted in September, its preparation begins at
least eight months prior, with projection of fund balances, revenue and expenditure forecasts, and
departmental needs assessments. It is with this groundwork that the departmental requests are made and
subsequently reviewed.

The following summary provides a brief description of the various phases of the budget process and
timeframes in which the budget preparation, review and adoption takes place.

BUDGET PHASES

Priority Needs Assessment Phase - This is the foundation of assessing what the current and projected
programmatic and operational needs of each department are as seen by the Citizens of Mansfield, City
Council, Boards, Commissions, and individual division/department directors. City Staff and City Council
reviews occur during this phase to identify and prioritize the needs and desires of each group. Community
feedback is an important component of the budget process in assessing citizen satisfaction with services
and establishing priorities for the upcoming budget year. Updates to the Strategic Plan normally occur
during this period and are presented to Council during the budget process. City Council has identified the
need to maintain City streets, enforce architectural standards for new development, create more
neighborhood and linear parks, encourage more retail, commercial and industrial development within the
City, and implement and continue the Capital Improvement Program.

Financial Trend Analysis Phase - an integral part of Mansfield’s decision-making process that includes
both short and long-range economic and financial forecasts. In fiscal year 2000, the City developed a 10-
Year Strategic Plan that is updated annually and modified to integrate the City’s operational and capital
requirements with both a short term and long-term goals. City infrastructure needs are identified during
this process and play an important role in the forecasting related to short and long-term operating needs.
During this phase, strategic forecasting assumptions are made including changes in fund balance
projections, revenue, expenditure, compensation adjustments and other costs adjustments. Preliminary
assumptions result in the City’s forecasted fiscal capacity and provide a balanced financial framework
upon which operating (departmental), and capital (infrastructure projects) budget targets can be
developed.

Policy/Strategy Development Phase - City Council’s goals and directives set the tone for the
development of the budget. The Council identifies key policy issues that will provide the direction of the
budget. The Strategic Planning Committee updates the City’s 10-Year Strategic Plan, identifying critical
objectives and the strategies to be employed in meeting those objectives. It is within this framework that
the department’s budget plans are formulated. The City Council identifies needs to establish priorities,
identify existing service levels, and review financial and economic trends and forecasts. City Council also
discusses policy direction with the Executive Staff.

Budget Development Phase - Based upon City Council’s priorities and strategic policy direction,
departments develop program objectives and work plans for the budget period. The Budget Department
submits to each department their prior year and year-to-date expenditures for review. Baseline budgets are
then developed which represent existing service levels and adjustments for price changes, inflation and/or
compensation adjustments. Departmental staff is asked to evaluate programs and positions. Departmental
staff reviews service level requirements and makes decisions regarding new programs, increased or

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