2005_0219_Packet - Laserfiche WebLink

Home

� � �� �� To: Mayor and City Council Neal Beets, City Manager From: ChrisMiller,FinanceDirector Date: February 19,2005 Re: Discussion on the 2006 Budget Process, Timeline, and Goals Introduction The City's budget provides the framework from which all city operations are carried out. Formulating the budget involves a comprehensive process that spans several months leading up to the submission of a preliminary budget for Council consideration in July. Given the complexity and critical nature of the budget, and in an effort to meet statutorial deadlines, it is important for the Council to establish a budget format, timeline, and goals early in the process. Budget Process and Discussion Format To ensure that an effective forum for budget discussions is held, the Council is first advised to consider the steps or measures that typically P rer�x3� budget worksessions. These steps andlor measures include: 1) Soliciting public input 1 public hearings 2) Setting citywide andlor departmental priorities 3) Establishing citywide goals & obj ectives 4) Identifying short-term (2006) and long-term (2006-2010) budget obj ectives 5) Setting spending and tax levy targets 6) Agreeing to primary discussion points such as major revenue and expenditure categories or tax-supported programs In addition to these budget process steps, the Council is also advised to consider the format in which the Council conducts budget worksessions. Potential options include: 1) Evaluating budgets by tax-supported programs vs. non tax-supported 2) Evaluating budgets by Department 3) Evaluating budgets by Program 4) Evaluating budgets by major expenditure categories 5) Evaluating budgets by selected line-item category Budget'I'imeiit►e MN State Statutes require municipalities to adopt a preliminary budget and levy no later than September 15��', and a final budget and levy no later than December �� . Depending on the current budget year's calendar, these dates can be moved up by a few days. In addition, the City must conduct a Truth-in-Taxation Hearing in early December. To ensure the City complies with State Statute, it's important for the Council to remain cognizant of these important dates.