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Attachment A 1,�� - - ,�..►T � 1 1 � REQUEST F4R CDUNCIL ACTI4N Date: 1/26/09 Item No.. Department Approval �� City Manager Approval Item Descriptian: Discuss an A[iernative Budgeting Frocess for 2010 BACKGYtOU�'n ._ Historically, the CiCy of Roseville lzas followed a budget process that called for the City Council to provide _ sorne gejleral buclgetary goals, followed by Che stibmittaI of a City Manager l�ecommended Budget. The Council then held subsequent bud�et discussions which culn�inated in th� passage of a final budget in Dec�mber of each year. While this budgeting tecl�ni��le is a familiar process and doesn't �lecessarily require any added effort than . the previous year, it will arguably prove to be inadequate in addressing future budgets. For 2010 and . beyond, the City will in effect be forced to confront two pr�nciple concerns that it l�as largely escaped up .. untii now. Tliey include: :.3 •3 IDealing with the implications resulting from recurr't.n� Sta�e-imposed levy li�nits u ;• Addressin� the City's asset replacement programs which remain an an unsustainable course � The urge�t�cy in address�ng these conceriis s�t�ms from the krlowledge that l�evy l�mits are �xpected to re�nain in place at least fhrough 2011; and tke C�ity's dedicated faciii�y, vehicle, anc� equiprnent replacen�ent �u�ds 3: are prajected to be drained by as early as late-2009 based on current replacemenf schedLlles. In addition, the cost af maintaining cua�rent service levels is outpacing available funding sources. Additional information �., regarding the CY�y's financial picture is shawr� in the attacl�ed draft of the Z0� 0-2019 Financial Plc�n. �3r-, _ These fmancial realities wiIl rec�uire a fi�ndan�en��al and swift change in how �ue allocate resources. We _,. simply cannot afford to allocate new b�rdg�t monies under the beiie�that the citrrerit b�dget is the `rigl�t' � budget. It is imperative that we prior[iize spending based on achievable goa�s and objectives, and remain discipli�led in equating tfle pub�ic's denland for services with their ability or willingness to pay. This new dyna�nic requires a different budgeting approach. City Staff is reco7nmending that the Council . adopt an outcome-based buc�geting process. This pracess has been presented to the City Council in prior ��<; years btzt to date, has �oi been adopted. The concept is explained in greater detai� �elow. Page 1 of 3