CGFO - PHASES OF THE BUDGET PROCESS
SIX PHASES
Budget manual (Call)
Agency/department budget requests
Preparation of proposed budget
Legislature consideration and adoption
Implementation
Audit and evaluation
PHASE 1 - BUDGET MANUAL
Responsibility for initiating budget cycle rests with the CEO, usually the City Manager or Mayor
Budget call or manual
Contains instructions sent to agency and department heads concerning the submission of
information for the budget year
Components of budget manual
Statement from CEO or budget officer outlining fiscal position
Description of budget process
Budget calendar
Assumptions to be used for requests
Forms to be used with instructions
PHASE 2 - DEPARTMENT REQUESTS
Prepared by agency/ department
-Transmittal memo that outlines its major objectives and initiatives for the budget year
-Budget schedules that detail the amount requested
-Narrative justification of requested amount
-Workforce ratios for some expenditure items
Narrative justifications include
1) Descriptions of current services provided by the agency/ department
2) Identify additional needs and the reasons for the increased activity
3) Discuss the implications of not funding the requested amount
4) Supporting documentation, if appropriate and relevant, to show how the request
amount was determined
, PHASE 3 - PREPARATION
Budget staff reviews requests to ensure:
*Compliance with budget instructions
*Revenues and expenditures balance
*Realistic revenue projections
Works with chief executive and management team to determine which requests and funding
levels will be included in the budget
Florida Department of Revenue provides information about revenue to local governments
PHASE 4 - LEGISLATIVE CONSIDERATION AND ADOPTION
(a) Executive proposal is presented to legislative body for consideration
(b) Legislative body reviews to ensure the budget addresses their constituents' needs
(c) Holds public hearings in accordance with Florida Statutes and local ordinances
Public hearings in compliance with State Statutes dictate:
*Date, Time, and Place of hearings
*Publicized hearings that give citizen interest groups the opportunity to raise issues related to the
allocation of resources
Budget document should:
*Provide summary information for the public and media
*Include a transmittal letter that outlines key policies and strategies
*Be readable and understandable - avoid complex, technical language
*Explain any events or conditions that require changes in operation to ensure financial stability
or solvency
*Be posted on the taxing authorities official website at least two days before budget hearing
Chapter 200, Florida Statutes
Truth in Millage (TRIM) - requires two public hearings for open discussion of millage rates and
budgets of taxing authorities
Ch 200.065 Method of Fixing Millage
*Purpose is to provide taxpayers transparency in how local taxing authorities propose and
approve millage rates as part of the taxing authorities' budget adoption process
*Determines whether there is a tax increase proposed
Who controls the TRIM Manual?
Florida Department of Revenue
SIX PHASES
Budget manual (Call)
Agency/department budget requests
Preparation of proposed budget
Legislature consideration and adoption
Implementation
Audit and evaluation
PHASE 1 - BUDGET MANUAL
Responsibility for initiating budget cycle rests with the CEO, usually the City Manager or Mayor
Budget call or manual
Contains instructions sent to agency and department heads concerning the submission of
information for the budget year
Components of budget manual
Statement from CEO or budget officer outlining fiscal position
Description of budget process
Budget calendar
Assumptions to be used for requests
Forms to be used with instructions
PHASE 2 - DEPARTMENT REQUESTS
Prepared by agency/ department
-Transmittal memo that outlines its major objectives and initiatives for the budget year
-Budget schedules that detail the amount requested
-Narrative justification of requested amount
-Workforce ratios for some expenditure items
Narrative justifications include
1) Descriptions of current services provided by the agency/ department
2) Identify additional needs and the reasons for the increased activity
3) Discuss the implications of not funding the requested amount
4) Supporting documentation, if appropriate and relevant, to show how the request
amount was determined
, PHASE 3 - PREPARATION
Budget staff reviews requests to ensure:
*Compliance with budget instructions
*Revenues and expenditures balance
*Realistic revenue projections
Works with chief executive and management team to determine which requests and funding
levels will be included in the budget
Florida Department of Revenue provides information about revenue to local governments
PHASE 4 - LEGISLATIVE CONSIDERATION AND ADOPTION
(a) Executive proposal is presented to legislative body for consideration
(b) Legislative body reviews to ensure the budget addresses their constituents' needs
(c) Holds public hearings in accordance with Florida Statutes and local ordinances
Public hearings in compliance with State Statutes dictate:
*Date, Time, and Place of hearings
*Publicized hearings that give citizen interest groups the opportunity to raise issues related to the
allocation of resources
Budget document should:
*Provide summary information for the public and media
*Include a transmittal letter that outlines key policies and strategies
*Be readable and understandable - avoid complex, technical language
*Explain any events or conditions that require changes in operation to ensure financial stability
or solvency
*Be posted on the taxing authorities official website at least two days before budget hearing
Chapter 200, Florida Statutes
Truth in Millage (TRIM) - requires two public hearings for open discussion of millage rates and
budgets of taxing authorities
Ch 200.065 Method of Fixing Millage
*Purpose is to provide taxpayers transparency in how local taxing authorities propose and
approve millage rates as part of the taxing authorities' budget adoption process
*Determines whether there is a tax increase proposed
Who controls the TRIM Manual?
Florida Department of Revenue
