The Budget Committee consists of the seven City Council members and seven citizens of Phoenix.  The Citizens are appointed by the Mayor with confirmation of the City Council. Citizen Members serve three-year terms.  The votes of all the members are equal. State law (ORS 294.414) mandates a budget committee for all Oregon local governments except as provided in ORS 294.423.

The Committee meets as necessary during the year and at a minimum must meet each spring to review the budget proposed by the City Manager. The meetings are open to the public and input from the public is received at the meetings. At a typical spring-time meeting, city staff presents financial overviews, highlights changes in programs and costs, and provides information on the City's long term fiscal outlook.

Budget Committee members can question city staff on financial, programs, and operational matters. The members can suggest and vote on amendments to the proposed budget. The proposed budget as amended by the committee changes is known as the Approved Budget.

The approved budget is referred to the City Council for adoption. A public hearing is held before the City Council. Council can adopt the budget as approved or vote on changes prior to adoption.