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Budget-Related Policies and Procedures

Availability of Proposed Budget to the Public and Public Hearings
The Budget Officer shall file his recommended, adjusted, and final proposed budgets with
the City Secretary on the same dates that each is targeted or required to be submitted to
the City Commission. The proposed budget shall be available for inspection by any
taxpayer.

Prior to adopting the budget and tax rate, including the levy, the City Commission shall
hold a public hearing according to the dates established in the budget calendar. The City
Commission shall provide for public notice of the date, time, and location of the hearing.

The Budget Process – Amended Budget
Any change to the original budget, which will exceed the appropriated amount at the
department level, requires City Commission approval and a supplemental appropriation
ordinance, which amends the original budget. Supplemental appropriations are called
budget adjustments.

The City Manager is authorized to approve budget adjustments between line items in a
department within the same fund. Budget adjustments may not be made between different
departments. Budget adjustments between line items within a department requires only the
department director’s signature; unless, the adjustment is for the purchase of capital outlay,
which was not included in the budget. Any adjustment for the purchase of capital outlay
requires City Manager approval.

Monitoring Compliance with Budget
Reports comparing actual revenues and expenditures/expenses to budgeted amounts will
be prepared and carefully monitored monthly in order to determine whether estimated
revenues are performing at or above levels budgeted and to ascertain that
expenditures/expenses are in compliance with the legally-adopted budget appropriation.

Encumbrances and Uncompleted projects
Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditure of monies are recorded in order to reserve that portion
of the applicable appropriation, is utilized as an extension of formal budgetary integration
in governmental funds. Although appropriations lapse at year-end for annually budgeted
funds, the City honors encumbrances outstanding at year-end. Since these commitments
will be honored during the subsequent year, outstanding encumbrances at year-end should
be included, by the department directors, in the subsequent year’s budget.

Financial Policies
Use of Unpredictable Revenues
Revenues, specifically oil and gas royalties, which are considered to be unpredictable, shall
not be used to finance current operations or for budget balancing purposes, but rather for
non-recurring expenditures, such as capital projects—except in circumstances

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