Page 94 - CityofWataugaAdoptedBudgetFY25

ANNUAL BUDGET PROCESS

BUDGETARY SYSTEM AND PROCESS

The City Charter requires the City Manager to submit a proposed budget for the fiscal year,
which begins October 1, to the City Council by August 1 each year, and provides for Council
adoption of the budget by September 15; Article IX Section 9.02 F states "The budget shall
be finally adopted not later than the last regular Council meeting of the last month of the fiscal
year." Prior to August 1, the Finance department prepares a forecast of expected revenues
from property taxes, sales taxes, and other fees and transfers. The City Manager and City
department heads prepare expenditure estimates for the remainder of the current fiscal year
and for the ensuing fiscal year, and these are compared to estimates of revenue for the same
periods. Adjustments are made to the departmental expenditure estimates as necessary to
ensure that the proposed budget is balanced within total estimated income as required by the
City Charter. A balanced budget can include a planned drawdown of fund balance within
guidelines discussed on the following pages.

As part of the general government budget preparation, there is also a simultaneous preparation
of a budget for both the Crime Control District and the Economic Development Corporation. Due
to their separate legal status, the respective boards must approve their budget, which is then sent
to the City Council for final approval and appropriation.

During the budget cycle, key budgeting principles are considered throughout the process as
shown below. These principles ensure the long-term vision and fiscal sustainability is a priority
throughout the budget process.

74