Table of Contents: Chapter 8

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801 BUDGET ADOPTION AND ADMINISTRATION

801.1 Purpose

The following procedures will be followed in the preparation, adoption, administration, and control of departmental budgets within City organizations.

801.2 Preparation and Adoption

801.2.1 The following fund types shall be budgeted: General Operating, Special Revenue, Debt Service, Enterprise, Internal Service, and Fiduciary Trusts.

801.2.2 Prior to the preparation of departmental budget requests the City Manager and Department Directors shall meet to establish priorities and goals for the coming fiscal year. The priorities and goals shall be the basis for which the Department Directors then prepare individual Program Budget requests for the upcoming year.

801.2.3 The Finance Director will furnish forms and time tables for the budget process by the end of the sixth month of the fiscal year. Each Department Director will be responsible for the preparation of his/her department's program goals and objectives. Program budget requests will then be submitted on the specified forms and within the time frame provided.

801.2.4 A budget calendar will be established each year and approved by the City Manager. The calendar will include appropriate review meetings between Department Directors, City Manager, and Finance Department; as well as meetings with the Finance & Personnel Council Committee and City Council public hearing.

801.3 Approval Process

801.3.1 A public hearing of the budget shall be held at least one week prior to considering the final proposed ordinance for adoption by the City Council.

801.3.2 Adoption of the budget will be by passage of the budget ordinance by the City Council and approval by the Mayor, as provided by law.

801.4 Budget Administration and Oversight

Each Department Director will be responsible for the administration of his/her departmental budget, within the guidelines hereby established. The City Manager shall approve all transfers of funds between line items within each department's budget which exceed $10,000. Adjustments to departmental program budgets must be approved by the City Manager. Increases in expenditures beyond that budgeted for the Fund must be approved by the Mayor and City Council.

801.5 Personal Services

Control of expenditures in the area of personal services is provided through position control. No new permanent positions may be created without the approval of the City Manager, Mayor, and City Council.

801.6 Unbudgeted Expenditures

No expenditures will be made unless:

1. It was specifically budgeted for in the adopted budget, or

2. The Finance Director determines that there are funds available in the department's budget, and the City Manager approved the purchase in writing.

3. Authorization of the City Council shall be required for any unbudgeted expenditures if they exceeds $10,000. For purchases under $10,000, City Manager approval is necessary. The Finance Department will prepare all necessary budget amendments.

801.7 Control of Budget Overruns

801.7.1 Reporting. The Finance Department will provide timely financial reports to each Department Director, the City Manager, Mayor and City Council.

801.7.2 Expenditure Projection and Analysis. The Finance Department will analyze the expenditure of each department on a quarterly basis and inform each Department Director whose expenditures appear to be exceeding the adopted budget. During preparation of mid year projections, the Finance Department will notify all Department Directors and City Manager whose budgets are likely to be exceeded for further direction.

801.7.3 Budget Overruns. If, during the budget year, the Finance Department shall determine that a department's expenditures will exceed the approved budget, the Finance Director shall with the approval of the City Manager prepare an adjustment to the budget. If the fund's expenditures are expected to exceed the approved budget a Budget Amendment shall be prepared for submission to the Mayor and City Council. In the event of an emergency, the City Manager may authorize an expenditure by a department pursuant to the City Purchasing Policy.

801.8 Summary

The Director of each department shall be held responsible and accountable for the expenditures of his/her department. The Finance Director shall, through timely reports and analysis, keep Department Directors and elected officials informed of any possible budget problems. A department shall not exceed it's approved budget without authorization from the City Manager. Amendments which change the total budgeted appropriations for any funds will be made through adoption of a budget revision ordinance.