Budgets are prepared, adopted, and evaluated on a fiscal year cycle, which for Kentucky cities runs July 1 - June 30. Initially, the executive’s office (commission, mayor or manager) prepares a budget based on departmental input, new initiatives and goals, and evaluations of previous years’ budgets. This proposal is then sent to the council or commission for amendments and approval. Once this is completed, it is then the mayor or city manager’s office that is responsible for implementing the particulars outlined in the budget.
The budget process is ongoing throughout the year and usually involves certain alterations to the original budget through amendment during the fiscal year. All applicable Generally Accepted Accounting Principles (GAAP) and Governmental Accounting Standards Board (GASB) guidelines are required throughout the process in order to ensure standardized reporting.