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Department Approval <br />�� ,�: �� <br />Item Description <br />Date: 2/09/09 <br />Item: 13.b <br />Budgeting Process <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 1/26/09 <br />Item No.: 13.a <br />City Manager Approval <br />Discuss an Alternative Sudgeting Process for 2010 <br />� / <br />BACKGROUND <br />Historically, the City of Roseville has followed a budget process the called for the City Council to provide <br />some general budgetary goals, followed by the submittal of a City Manager Recommended Sudget. The <br />Council then held subsequent budget discussions which culminated in the passage of a final budget in <br />December of each year. <br />While this budgeting technique is a familiar process and doesn't necessarily require any added effort than <br />the previous year, it will arguably prove to be inadequate in addressing future budgets. For 2010 and <br />beyond, the City will in effect be forced to confront two principle concerns that it has largely escaped up <br />until now. They include: <br />❖ Dealing with the implications resulting from recurrin� State-imposed levy limits <br />❖ Addressing the City's asset replacement programs which remain on an unsustainable course <br />The urgency in addressing these concerns stems from the knowledge that levy limits are expected to remain <br />in place at least through 2011; and the City's dedicated facility, vehicle, and equipment replacement funds <br />are projected to be drained by as early as late-2009 based on current replacement schedules. In addition, <br />the cost of maintaining current service levels is outpacing available funding sources. Additional <br />information regarding the City's financial picture is shown in the attached draft of the 2010-2019Financial <br />Plan. <br />These financial realities will require a fundamental and swift change in how we allocate resources. We <br />simply cannot afford to allocate new budget monies under the belief that the current budget is the `right' <br />budget. It is imperative that we prioritize spending based on achievable goals and objectives, and remain <br />disciplined in equating the public's demand for services with their ability or willingness to pay. <br />This new dynamic requires a different budgeting approach. City Staff is recommending that the Council <br />adopt an outcome-based budgeting process. This process has been presented to the City Council in prior <br />years but to date, has not been adopted. The concept is explained in greater detail below. <br />Page 1 of 3 <br />