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Processes and Policies

Budget Process

Creation of the Budget

The annual budget process begins immediately in each fiscal year with preparation for a City Council retreat. The
City has an established practice of conducting annual planning retreats with the City Council, city manager and
senior staff. This planning workshop serves to promote collaborative dialog and strategic thinking to identify
future opportunities and challenges to the achievement of the Council’s vision for the community and the
municipal organization. The City Council establishes City goals and provides information to executive staff to then
create the City budget calendar. The calendar establishes the timelines for the process, including the date of
submission of departmental requests, budget work sessions, and public hearings that lead to the final adoption
of the budget.

Department requests are based on the organization’s budget assumptions. Before considering budget increases
or savings, the “base budget” is developed. The base budget is generally defined as the cost of providing the same
service, at the same service level, in the next fiscal year. The Planning and Data Analytics Department creates a
target base budget for each department. The target is based on numerous factors, including salary projections,
annualizing prior-year commitments, removal of one-time costs from the prior fiscal year, and other factors. After
the target is established, department staff may modify the amounts within the target total but are to submit an
operating budget delivering the same service level.

Departments may submit proposed increases or decreases to service levels and budget requests along with
supporting documentation. The requests are reviewed and subsequently approved, denied, or modified for
inclusion in the adopted budget.

City Council Authorization / Appropriation

In compliance with the Fort Worth City Charter, the city manager must submit to the City Council a recommended
balanced budget that provides a complete financial plan for all city funds and activities for the ensuing fiscal year,
on or before August 15 of each year. The budget is required to be adopted by the City Council before September
th
30, before the start of the next fiscal year. The City of Fort Worth traditionally adopts the budget in the middle of
September.

City Manager’s Authorization

For those funds for which annual budgets are adopted, appropriations are budgeted and controlled on a functional
basis and are amended as necessary during the fiscal year. The city manager may transfer part or all of any
unencumbered appropriation balances among programs within a department, division or section upon
compliance with conditions set forth via ordinance by the City Council. These transfers cannot result in a net
increase to the overall appropriation. Revisions that alter the total appropriations of any fund and department
must be approved by the City Council.

Budget Implementation & Monitoring

Once the budget is adopted in September, it becomes the legal basis for the programs of each department of the
City during the upcoming fiscal year. No department or other agency of the City may spend more than the
appropriated amounts. Financial and programmatic monitoring of departmental activities throughout the year
ensure conformity to the adopted budget. Unencumbered appropriations lapse at the end of the fiscal year and
are returned to fund balance; in rare circumstances, these unspent funds may be re-appropriated in the

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