Title
Review of the Budget Process
Executive Summary: This is a review of the budget process for 2016 in anticipation of process involvement for the 2017 Budget and Five Year Plan schedule.
Body
Legislative History
The City’s budget and Five Year Plan is passed every year prior to the beginning of the new fiscal year. City Council and staff spend several meetings reviewing the proposed budget prior to adoption. Over the past several years the budget preparation and review process has been modified in a process of continual improvement.
Purpose & Explanation
Prior to 2015, staff would present City Council with a recommended Budget and Five Year Plan. Staff would then go through the budget and five year plan over the course of several meetings. The recommendations were generally approved by Council with few modifications. Because of the way the meetings were structured, Council did not feel there was sufficient time given to a complete list of funded and unfunded capital projects.
In response to Council’s request, staff provided a listing of all capital requests for all departments for the budget and five year plan workshops. This allowed Council to not only review what was being funded but also gave perspective on what was either not funded or under-funded. While this approach worked well for addressing the capital needs, there was sentiment from some on Council that we did not spend enough time meeting directly with department managers. In addition, some Council members felt the structure of our meetings did not allow sufficient time to review the “big picture” of not only the General Fund but the other major operating funds as well.
As the 2016 budget was reviewed, changes were made in the workshop process and schedule. The feedback received by fellow members of staff and members of Council provided an opportunity to review and revise our methodology.
For the 2017 Budget and Five Year meeting schedule, staff is recommending we blend the two approaches. We would present a recommended budget and five year plan but include all requested capital projects/purchases for each department. We would give each department manager the opportunity to discuss their capital and/or personnel needs and any new initiatives, plans, etc. We would not go through the details of all operating accounts within each department but rather focus on the overall operations and long-term financial outlook.
Attached is the planned schedule for the 2017 Budget and Five Year Plan.
Timing Considerations
Budget preparation begins in June. Council review of the proposed budget begins in September. Consideration for adoption is scheduled in November.
Fiscal Impact
Currently Budgeted
Supplemental Appropriation Required
Appropriation Not Required.
Recommendation
Suggested Action
Review and discussion of budget process at the April 12th Council workshop.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Finance Director