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k" <br />REQUEST FOR COUNCIL ACTION <br />Date: 04/11/2011 <br />Item No.: 7 - d <br />City Manager Approval <br />Item Description: Adopt a Resolution Giving Concept Approval for a 2-Year Budget <br />11 BACKGROUND <br />2 Earlier this year, the City Council held a discussion regarding the merits of 2-Year Budget Cycle. During <br />3 this discussion it was noted that while State Statute requires the City to annually adopt a budget and <br />4, property tax levy, the City would benefit by having a budgeting approach that places greater emphasis on <br />5 long-term objectives while providing added flexibility to address operational priorities. <br />6 <br />27 <br />28 <br />29 <br />30 <br />During this same discussion, Staff indicated that it was prepared to take this approach for the 2012 and <br />2013 fiscal years. At the conclusion of this discussion, it appeared that a majority of the Council were in <br />favor of a 2-year budgeting approach. Given the significant staffing resources that accompanies any budget <br />process, the Council is asked to adopt a resolution signifying their support for this approach. <br />Some of the benefits of a 2-year budgeting approach include: <br />Maintain emphasis on longer-term goals and objectives. <br />Added flexibility to take advantage of pricing and/or volume discounts. <br />• Greater ability to capitalize on opportunities on the horizon. <br />Better positioning for responding to unforeseen circumstances. <br />More efficient use of City Council and Staff resources devoted to budget discussions. <br />It should be noted that a 2-year budgeting approach will necessitate amid -term financial review to <br />determine whether initial assumptions on revenue and expenditure projections are trending as expected. <br />This review will also provide the Council with the chance to reallocate resources to accommodate any <br />changing priorities or community needs. However, it is suggested that this mid-term review be limited in <br />scope to ensure that the underlining benefits and objectives of a 2-Year Budget are not compromised. <br />POLICY OBJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />Not applicable. <br />STAFF RECOMMENDATION <br />Staff Recommends the Council adopt the attached resolution giving concept approval for a 2-year Budget. <br />Page I of 4 <br />