Page 28 - KennedaleFY24AdoptedBudget

BUDGET PROCESS/TIMING

The development of the Annual Budget is governed by formal policies, accepted practices, and
the City’s budget principles – foremost of which is a balanced budget where revenue is equal to
or greater than operating expenses, with unassigned fund balance being utilized for one-time
capital purchases or street repair. The budget process is designed to meet the needs of the
community by allocating sufficient resources to support the planning and implementation of
services, programs, and objectives. The budget is built with the following purposes in mind:
 Establishes a plan of operation, which allocates resources of the City to achieve
specific goals and objectives and guides the City’s activities;
 Provides management information as a comprehensive recording of information;
and,

 Establishes financial control through prioritization of programs/projects.

The budget cycle consists of three phases:
Development and Preparation

Each Director develops and submits to Finance initial budget requests, which are based on
standing and new services and programs to meet the needs expressed by the public and the
goals of the Mayor and Council. The Finance Director and the City Manager meet with each
Director to review new program requests and compare projected revenues against projected
expenditures. The City Manager then prepares a preliminary budget. The Preliminary Budget is
shared with staff and assists the City Manager in developing the Proposed Budget, which is
presented to City Council.
Review and Adoption

Council reviews the Proposed Budget, holds public hearings, and provides input and direction
to staff before adopting the budget and the supporting property tax rate for the fiscal year.
Implementation

Throughout the fiscal year, the City Manager and staff implement and monitor the Adopted
Budget. Included services, programs, and projects are carried out by departments with
oversight from the Finance Office. Monthly financials are provided to Council to provide a
status report on revenues and expenditures. The Finance Office also reviews and approves all
check requests and requisitions for accuracy. Directors are expected to hold expenditures to
the approved budgeted amounts, however, sometimes unforeseen circumstances occur
resulting in positive and/or negative variances by line item. Directors must manage to the
bottom line for the department, and report any overages at that level to the City Manager as
soon as known to prevent any unexpected/unauthorized use of reserves. Budget amendments
are presented by the City Manager to Council for approval and then input into the accounting
system for tracking.
FINANCIAL POLICIES AND PROCEDURES

Financial policies adopted by Council govern the management of the City’s various funds.
These policies have enabled the City to maintain an AA- bond rating from S&P Global. Adopted
Financial Policies are available on the city website at www.cityofkennedale.com/FINpolicies.

CITYOFKENNEDALE.COM/BUDGET 25