The Office of Budget and Management (OBM) prepares and implements the City of Chicago’s annual budget, and each year produces a number of documents related to the budget.
Each year, the City prepares a budget that accounts for what the City intends to spend over the course of the following year and the taxes and other resources that will be available.
In accordance with the State of Illinois Municipal Code, the City must produce a balanced budget for each fiscal year, which runs from January 1st through December 31st.
Beginning in the summer, City departments inform the Office of Budget and Management (OBM) of their needs for personnel and non-personnel expenses for the following year. OBM also welcomes ideas from Chicagoans on how to reduce expenses and better manage government.
On or before July 31st, OBM prepares an Annual Financial Analysis which includes: a trend analysis of all City funds; a financial forecast, including three-year baseline and alternative forecasts; and analyses of the City’s reserves, capital program, debt, liabilities and financial policies.
In the fall, the Budget Director works with the Mayor and the administration to develop a final budget proposal for the entire City government. When these steps are complete, the Mayor presents this proposed budget to the City Council.
The City Council then holds a series of public hearings on the budget and may propose amendments to it.
Once the budget is approved by the City Council, it becomes the Appropriation Ordinance. The Appropriation Ordinance is implemented on January 1st of the following year.