TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, Acting City Manager
FROM:
Steve Charelian, Acting Finance Director
Libby Bretthauer, Financial Analyst
SUBJECT:Title
Budget Policies and Biennial Budget for Fiscal Year 2018-2019 and Fiscal Year 2019-2020 (Acting Finance Director Charelian).
APPROVE AND PROVIDE DIRECTION
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends the City Council 1) approve the tentative Budget Calendar and Budget Policies and 2) provide direction on the upcoming biennial budget cycle for fiscal year 2018-2019 and fiscal year 2019-2020.
Body
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
In 2016, the City transitioned to a two-year budget cycle. The purpose of the two-year budget is to encourage long range planning and allow for greater emphasis on management, service delivery, program evaluation and monitoring. Other benefits include reallocation of human resources to more value-added activities other than budget preparation and a reduction in staff time spent on budget development in the second budget year.
In the beginning of the two-year budget cycle, the first year of the biennial budget is adopted and the second year is approved as a spending plan but not adopted. Adoption of the second year occurs in June before the new fiscal year begins. Prior to adoption of the second year in 2017, staff performed a review process for critical changes to the approved spending plan and presented options to the City Council for the reduction and/or streamlining of costs. The City Council then formally adopted the second year spending plan as modified through this exception-based review process.
One of the greatest benefits of the two-year budget involves the City's Capital Improvement Plan (CIP). Previously, under an annual budget process, the development and approval of the CIP occurred conc...
Click here for full text