Page 300 - FY 2025 Adopted Operating Budget and Business Plan

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BUDGET PROCESS

The following describes the preparation, development, and adoption of the City’s annual budget.

Pre-Planning Phase: After the first quarter of the fiscal year, departments submitted current-year revenue and
expenditure estimates to the Office of Management and Budget (OMB), which prepared a first quarter Budget Analysis Report
(BAR). This is the first look at current-year expenditures and revenue estimates compared to budgeted amounts. After the first
quarter BAR, departments begin to set priorities for the next fiscal year including preparation of preliminary new program
requests and justifications.

Council Planning Session: Staff hold a day-long retreat with Council members to determine what their priorities for
the upcoming fiscal year will be.

Budget Kick-off: At this late April/early May meeting, departments received an overview of the financial position of the
City, and forms and reports necessary to prepare formal new business plan requests. They also received a Target Number,
which is the maximum amount they are authorized for their base budget submissions. Additionally, departments received a
calendar indicating significant dates for budget meetings and deliberations.

Third Quarter Budget Analysis Report: After budget submittal, departments submitted third quarter revenue
and expenditure estimates. The OMB prepared a second quarter BAR analyzing variances for the City Manager’s Office.

City Manager’s Review: The City Manager met with the Deputy City Managers and the OMB. The City Manager
reviewed BPs and determined which ones to include in his proposed budget.

City Manager Presentation to City Council: On the first Tuesday in August, the City Manager presented his
proposed budget to City Council. The Manager’s Message outlines business plan additions.

Public Hearings: During August, Town Hall meetings were held to receive public comments regarding the proposed
budget. A public hearing was conducted in September on the proposed budget, in accordance with applicable provisions of
state law.

City Council Deliberations: Over the summer the City Council reviewed the budget. During this time, citizens were
able to address Council about specific issues. Also, during this time, Council was able to amend the budget to include programs
considered a high priority.

Tax Rate: State law requires the calculation of “no-new-revenue” and “voter-approval” tax rates. The “no-new-revenue” rate
is that rate which generates the same revenue in the proposed year as in the current year from properties on the tax roll in both
years (excludes new property). The “voter-approval” rate is a rate that represents a 3.5 percent increase in the
operations/maintenance portion of the total tax rate. A public election must be held if the “voter-approval” rate is exceeded.
These rates were provided to Council.

Adoption: Upon meeting notice and hearing requirements, City Council voted to adopt the budget and the tax rate. In
accordance with City ordinance, a majority of the Council must approve the ordinance adopting the budget; adoption of the tax
rate requires a two-thirds majority. The budget and the tax rate are adopted by ordinance, requiring two readings.

Amending the Budget: Upon adoption of the budget, the OMB may approve the transfer of appropriations within a
department. Transfer of appropriations between departments within the General Fund requires the approval of the City
Manager’s Office. Formal Council approval is required to move appropriations from one fund to another fund, or to increase
authorized appropriations in any fund.

FY 2025 Adopted Budget and Business Plan 291 City of Arlington, Texas