CC_Minutes_2011_0711 - Laserfiche WebLink

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Mr. Mayor, Councilmembers: As scheduled by the Council in your 2012-2013 budget workplan, I am presenting my proposed draft budget. The budget preparation process is virtually year round, and this budget cycle is a biennial process, which plans for two years, rather than one. With this approach, we hope to help focus on a longer planning horizon —which can help to identify and address needs beyond the immediate years, and to save time for both staff and Council from annual preparation. This process does not cement the revenues or expenditures for the second year of the process, but it does allow for discussion of the budget for the second year, with the expectation that while there will be some adjustments to the second year of the budget, there should not be as much effort needed to reach budget decisions. Prior to this evening, the City Council has provided direction to staff through the program priority setting process, our community survey that provides community input into the priorities of a budget and the establishment of a preliminary "Not to Exceed" property tax levy on June 13th. The Council committee that studied the Capital Investment needs recommended shifting approximately $300,000 (or 2%) in operational costs from the budget to capital needs. That, combined with a property tax increase of approximately 3.4% would adequately fund the capital needs (not including the Parks master plan, fire station or pathways). I asked all departments to reduce their operating budgets based upon the Council priorities. As previously discussed with the Council, this reduction would also need to address inflationary or contractual cost increases that were occurring. The budget presented tonight achieves the direction provided by the Council. As I noted previously, it will change our programs and service levels. So let's review the recommended budget: