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, the mayor, city commission, or city manager’s office (depending on the city's form of government) implements the particulars outlined in the budget.
The budget process continues throughout the year and usually involves certain alterations to the original budget through amendments. 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.