The Budget Process

The budget process begins in August when Finance submits budget work sheets, including salary and fringe benefits cost, to each department. The Manager meets with the Department Heads and outlines his general budget policies and goals at this time.


By the third Friday in September the City Manager present to the Council an overview of preliminary budget assumptions.  These preliminary assumptions will address by fund, revenue projections, tax and utility rates, program additions or deletions, wage and benefits, or other issues with potential impact on the City’s overall financial condition.


The departmental budgets are received by the finance department and entered into the computerized budgeting system.  This information is shown in the budget document on the department budget pages in the "Manager’s proposed" column. The resulting computer reports are then routed to the department heads for their review.  After adjustments are made, the Manager, along with the Finance Director and the appropriate department head, reviews each departmental budget.  As the Manager makes changes to the department's proposed budget, his recommended changes are entered into the computerized budget system under the "Manager’s proposed" column for the preliminary budget document.  The City Council makes the final adjustments to the budget, and the final budget amounts appear in the "Council adopted" column of the final budget document.


In accordance with Homer City Code 3.05, the City Manger will submit to the City council the proposed budget by the third Friday in October and at a meeting held not less than ten days prior to the end of the fiscal year, the Council shall, by ordinance, make appropriation of the money needed for the following year.  In FY2003, the proposed budget will be submitted to the Council on October 25, the Council has the option of holding work sessions on the budget throughout October and November. The ordinance setting the level of appropriation for the upcoming fiscal year is introduced at the second Council meeting in November. After holding public work sessions is scheduled for adoption at the first meeting in December.


After the budget has been established, the Council may transfer appropriations between major classifications or department by resolution; however, transfer of appropriations between funds must be done by ordinance.  The City Manager has the authority to transfer

amounts up to $10,000 within a department.