Because Minnesota law requires cities to adopt a budget annually, the City Council adopts the first year of the budget and accepts the following year's budget in concept. This cycle gives the City the benefit of longer term planning while still allowing the City Council to adjust the following year's budget, if needed, for mandates, significant changes in the economy or unanticipated events.

Before adopting a budget each year, the City Council holds study sessions as well as a public hearing on the proposed budget. The hearing is usually held in December. The date of the public hearing is publicized in the November issue of the resident newsletter, Plymouth News. In addition, the budget public hearing is televised on the City cable television channel, Channel 16. All of the meetings are open to the public.