Page 26 - CityofForestHillFY25AdoptedBudget

Budget Policies

The City of Forest Hill budget format includes goals, objectives, various summaries, statistical
information, and revenue sources. They are provided to help define the City’s goals, purposes,
and assumptions for projections. The budget document and organization of the budget are
described below.

BUDGET PROCESS

The City of Forest Hill has implemented a performance-based budgeting process. Each
department prepares a budget by completing a budget workbook. Any operating expense which
exceeds the prior years’ funding level, is evaluated and a recommendation to the City Manager
is made.

Development of City Council Goals

The City Council provides to the City Manager regarding priorities and areas, which may need
improvement, or funding. City Council budget issues are discussed at budget workshops. Council
responses and feedback from discussions are then used during further budget reviews.

Departmental Budget Workshops

During the departmental budget workshops, the staff is informed of the budgeting concepts,
guidelines, and forms. A needs assessment is provided by all departments to the City Manager.

Revenue Projections

The City Manager makes revenue projections. Projections are made based upon consultations
with state and local agencies, trend analysis, anticipated changes in the local and regional
economy, and discussions with directly associated Staff members. The budget revenue
projections occurs concurrently with departmental budget development and extends until the
budget is adopted based upon the receipt of any new information.

Proposed Budget Compilation

Once the departmental budget requests are completed and are reviewed by the City Manager,
a preliminary draft of the proposed budget is prepared by the City Manager and submitted to
the City Council for review and reference during budget workshops. At this time the funding
level is weighted against available resources. A tax rate may or may not be recommended
depending upon Council’s priorities and issues previously expressed in the budget process.

City Council Budget Workshops
Recommendations concerning the proposed budget are discussed with the City Council. The
proposed budget is not actually submitted until after initial discussions regarding major issues
are presented to the Council.

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