Page 404 - FY 2026-2027 Adopted Budget Book

Accepted Accounting Principles (GAAP). The revenues are recorded when actually received, and
expenditures are recorded when the liability is incurred. Accounting records for the City’s
utilities and other proprietary funds are maintained on a full accrual basis. For example,
expenditures are recognized when a liability is incurred, and revenues are recognized when they
are obligated to the City. The budgetary accounting basis follows GAAP except that fund
balances/retained earnings are presented in the budget as a measure of available spendable
resources. Unexpended appropriations for budgeted funds lapse at fiscal year-end, except for
appropriations for Capital Project Funds, which are for the length of the project.

OVERVIEW. Budgeting is an essential element of the financial planning, control, and evaluation
process of municipal government. The City’s “operating budget” is the City’s annual financial
operating plan. It comprises governmental and proprietary funds, including the Debt Service Fund,
special revenue and capital improvement funds.

PREPARATION. The budget is prepared by the City Manager with the cooperation of all City
departments and is submitted to the City Council. The budget should be presented to the City
Council prior to the fifteenth day of August each year and should be enacted by the City Council
prior to fiscal year end.

The budget shall include all information required by the City charter, with four basic segments for
review and evaluation. These segments are:
1. Personnel Costs;
2. Base Budget for Operations and Maintenance Costs;
3. Supplemental Funding Packages for Capital and Other Non-capital Projects (i.e., new or
expanded programs)
4. Projected Revenues.

The base budget represents funding for the current level of service, and does not include capital
outlay, new programs or new services. Any item requested for capital outlay, new programs or
new services is shown as a Supplemental Funding Package. Supplemental Funding Packages are
above and beyond the prior year base and are considered individually for funding approval.

A Combined Budget Summary with scheduled inter-fund transfers is included in the budget
presented to the City Council.

The budget review process shall include Council participation in the development of each of the
four segments of the proposed budget and a Public Hearing to allow for citizen participation in the
budget preparation.

The budget process shall allow sufficient time to address policy and fiscal issues by the Council.

A copy of the proposed budget shall be filed with the City Secretary when it is submitted to the
City Council in accordance with the provisions of the City Charter.

As required by state law and the City’s Charter, the Council shall call and publicize a public
hearing. The Council will subsequently adopt by Ordinance such budget as it may have been
amended as the City’s Annual Budget, effective for the fiscal year beginning on the first day of
October.