Budget Process

Four Stages of the Budget Process:

Budget Preparation – Departments are required to prepare their program budget requests for the upcoming fiscal year on forms supplied by the Director of Finance. The amounts requested must be justified in terms of the results to be achieved.

Budget and Program Review – The Director of Finance reviews all departments’ program budget requests and makes recommendations to the City Manager. The City Manager and the Director of Finance confer with department officials to review all budget requests and determine appropriate budget levels, after which the City Manager makes the final budget decisions and submits his recommendation to the Mayor and the City Council by April 30.

Consideration and Adoption – Sixty days prior to the City’s fiscal year end, the City Manager’s recommended budget is given to the Mayor and City Council for their review. The public is encouraged to contact their City Council representative at any point during the budget year regarding the funding of budget priorities and to attend the public hearing to make comments during the first reading of the budget ordinance. City Council may make changes during this 60-day period and adopt the budget in accordance with provisions of the Charter.

Execution of the Budget Plan – The actual implementation of the budget, as adopted by the Mayor and City Council, is effective July 1 of the fiscal year.

Budget Transfers:

The City Manager, with the approval of the Council and upon the recommendation of the department or agency head, may transfer any unencumbered appropriation balance or portion thereof from one classification of expenditure to another within an office, department or agency. At the request of the City Manager, and within the last three months of the fiscal year, the Council may, by resolution, transfer any unencumbered appropriation balance or portion thereof from one office, department or agency to another unless otherwise provided in the Charter. No transfer shall be made of specified fixed appropriations.

Budget Amendments:

After the budget is adopted, Council must approve any increase due to unanticipated expenses, grant revenue, or other revenue sources via a budget adjustment bill. An increase in the number of full-time or part-time positions allocated to a department after the budget is adopted must also be presented to Council for approval.

Balanced Budget:

To provide for a continuing level of government services and financial stability, the City of Springfield operates with a balanced operating budget that supports current expenditures with current revenues. Current revenues are defined as taxes, charges and fees, intergovernmental revenue, interest and other miscellaneous revenue. Current expenditures are defined as personnel, supplies, services, and general operating equipment. The operating budget does not include major capital improvement projects. These projects and costs are included in the separate six-year Capital Improvement Program (CIP).

The City is committed to meeting this policy under normal circumstances. It is recognized there may be times when it is advisable and necessary to use the cash reserves to balance the operating budget. If the annual budget requires the use of fund balance to match operating revenues and expenses, the amount of the fund balance used and the purpose for which it is appropriated shall be identified in the budget letter.