How the Budget Process Works

The primary responsibility of the Budget Department is to prepare the annual operating and capital budgets for submission by the City Manager to the City Council as required by Chapter 44 of the Massachusetts General Laws. Each budget is an exercise in balancing City revenue collection with expenditures. The City collects revenues through activities such as taxes and permitting, and expends funds through activities such as salary payment, department operations, and capital investment.

Each fiscal year begins on July 1 and ends on June 30. For example, fiscal year 2024 (FY24) began on July 1, 2023, and ended on June 30, 2024. In the months preceding the start of a new fiscal year, Budget Department staff meet with the City Manager and Finance Director to update the City’s 5-year financial projections in order to establish general budgetary guidelines and limitations for the coming year. By state law, the budget must be submitted to the City Council within 170 days after the Council organizes in early January. The Council then facilitates a number of public hearings to finalize and adopt the budget.