Municipal spending and revenue sources are both authorized and planned out in the form of a city budget. A city budget is an annual detailing of the municipal fiscal policy, which means that any money spent or raised must be laid out in that document. Beyond simple revenues and expenditures it also highlights any program goals the city has decided on, changes in financial procedures, and any particular foreseen details pertinent to the functioning of the city for the upcoming fiscal year.
The actual structure of the budget is up to the council or commission, but must be approved via ordinance, and is therefore adopted in the same process (for more information on this see “Budgetary Process” in related topics). Some cities (typically with higher revenues) will separate capital and operating expenditures into separate budgets much like the state budget model, but such a structure is in no way required.
Kentucky cities must adopt a budget in which the appropriations do not exceed the revenue within the fiscal year. The fiscal year for cities runs July 1 through June 30.
- KLC Research Report: The Basics of Kentucky Cities (PDF)
- KLC Research Report: Today's Kentucky City - A Comprehensive Analysis of City Operations (link)
- Best Practices: Danville City Budget - Listening to the Citizens (PDF)
- Kentucky City: The Recession and Kentucky Cities' Revenue (PDF)
- Kentucky City: Answers to Your Top Budget Questions (PDF)
- Kentucky City: Chapter 9 Bankruptcies on the Rise as Municipalities Grapple with Recession (PDF)
- COTC Training Opportunities (link)
- Kentucky Cities Financial Manual (link)
- GFOA Recommended Budget Practices (PDF)
- KLC Legal FAQ: How and when should a city budget be adopted? (link)
- KLC Legal FAQ: Important Reminders about Work Sessions (link)
- Chapter 18 of the City Officials Legal Handbook (link)
- Kentucky Constitution Section 157b (link)
- KRS 91A.030 (link)