Page 23 - City of Fort Worth Budget Book

Processes and Policies Budget Process

Creation of the Budget
The annual budget process commences in the winter of the preceding year with the City Council retreat. The City
Council establishes city goals and provides information to executive staff. The executive staff then creates the city
budget calendar. The calendar establishes the timeline 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 FWLab 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 or greater at or below the budget target.

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 15th of each year. The budget is required to be adopted by the City Council before
September 30th, before the start of the next fiscal year. The City of Fort Worth traditionally adopts the budget in
the middle of September.

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 funds may be re-appropriated in the subsequent fiscal
year for the same purpose by City Council. The City Manager is responsible for maintaining a balanced budget at
all times. If there is an excess of expenditures over revenues or appropriations, the City Manager will take
necessary actions to rebalance the budget.
The city conducts comprehensive forecasts of revenues and expenditures throughout the fiscal year. These
forecasts are used to assist in budget development, budget monitoring, and performance management. Based on
the results of these forecasts, the City Manager may direct the necessary actions to maintain a balanced budget
in the current fiscal year or adjust recommendations in the subsequent budget.

The budget is published online at the city’s website www.fortworthtexas.gov.

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