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Budget Process - Overview

Budget Process

The City’s budget serves as a roadmap during the fiscal year, outlining how budget resources will be allocated and spent in
accordance with the goals and priorities of the City Council. The budget is formulated with the aid and support of the City Council,
Finance and Government Committee (F&G), City Manager’s Office (CMO), Department Directors and staff, and the Budget
Department. The budget must be adopted before September 30th by State law and City Charter.

The City’s budget process begins with the Budget Kickoff in February, where the Budget Office provides the budget information
manual and budget forms to departments to assist them in developing budget estimates and identifying future and current needs. In
April, departments provide revenue and expense projections for the current fiscal year-end and next year’s budgets, improvement
requests, and all other required forms to the Budget Office. In May and June, the Deputy City Manager (DCM) Reviews are held
between the City Manager’s Office, the Budget Office, and the Departments. During these meetings, all department submissions and
needs are reviewed, and decisions are made about what will be included in the proposed budget.

F&G Committee Meetings are held in July and early August, where committee members review the draft proposed budget, provide
staff with input, and request changes to the draft proposed budget if necessary. The City Council Budget Workshop is held in mid-
August, where City staff present the Proposed Budget to the City Council, and Council Members can provide feedback and request
changes. In September, the Proposed Budget is reviewed in open session during a City Council Meeting. In the second city council
meeting, the budget and property tax rate are adopted. After the budget is adopted, it becomes the Adopted Budget. The Adopted
Budget grants authority to spend public funds as outlined in the budget from October 1st to September 30th.

During the fiscal year, the Adopted Budget can be amended by several methods. The Budget Manager can make adjustments
between accounts within a single fund. Typically, these requests are generated at the Department Head level and submitted to the
Budget Manager for consideration. The City Council has authorized the City Manager to approve the use of contingency funds for
expenditures greater than $5,000 but not more than $49,999.99. The City Council may approve the use of contingency funds for
expenditures of $50,000 or greater or may amend the budget to authorize additional appropriations in each Operating or Capital
Improvement Program fund by ordinance if such expenditures are necessary to protect public property or the health, safety, or
general welfare of the residents of Grand Prairie.

Basis of Accounting and Budgeting

The City's basis of accounting conforms to Generally Accepted Accounting Principals (GAAP) as established by the Governmental
Accounting Standards Board (GASB), and the Annual Comprehensive Financial Report (ACFR) is prepared under the modified
accrual and accrual basis of accounting, as required by GAAP. The City's basis of budgeting essentially follows the basis of
accounting (modified accrual for governmental funds and full accrual for proprietary funds); however, there are exceptions, which are
described below.

Only revenues expected to be received during the year or soon thereafter are included in revenue estimates (budget basis). For
GAAP purposes, governmental fund type revenues are recognized when they are both "measurable and available" according to
the modified accrual basis of accounting. Proprietary fund type revenues are recognized when earned according to the accrual
basis of accounting.
Only amounts that will be spent or encumbered by the end of the fiscal year are recorded as expenditures (budget basis).
Depreciation expense is not displayed, and capital expenditures and bond principal payments are shown as utilized by each fund
(budget basis).
Compensated absences (accrued by unused leave) and employee benefits are not reflected in the budget.
Transfers are classified as revenues and expenditures (budget basis) rather than as "other financing sources or uses" (accounting
basis).

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