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City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance Council Committee <br />FROM: Peggy McCarthy, Finance Director <br />BY: Vicky Carlsen, Deputy Finance Director <br />CC: Mayor Ekberg <br />DATE: August 30, 2017 <br />SUBJECT: Update on Budget Process for 2019-2020 <br />ISSUE <br />As part of the City's 2017 work plan, staff is reviewing the current budget process and <br />recommending enhancements to the 2019-2020 process. These enhancements will allow the City <br />to meet its current biennial priority of "Ensuring organizational effectiveness and responsible fiscal <br />stewardship," while also directly aligning with the Strategic Plan goal of maintaining "A high <br />performing and effective organization." <br />BACKGROUND <br />A City budget serves several functions. Based on GFOA's "Best Budgeting" practices, a budget <br />is a policy document, a communications device, a financial plan, and an operations guide. The <br />City receives the GFOA budget award every two years for this document, representing the City's <br />ongoing commitment to conforming to these guidelines. To keep current with these best <br />practices, it is important for the City's budget process to evolve over time. In planning for the next <br />biennium, we have reviewed the various budgeting methods available. <br />At the May 16, 2017 Finance Committee meeting, various budgeting methods were presented <br />along with the pros and cons of each model. The Committee gave approval for staff to proceed <br />with research and analysis of potential enhancements toward a recommendation to Council. <br />DISCUSSION <br />Goal of Budget Process <br />The central goal of the budget process is to help Council make informed decisions about what <br />services should be funded, and how to promote stakeholder participation in the process. A good <br />budget process: <br />• Incorporates a long-term perspective, <br />• Establishes links to broad organizational goals, <br />• Focuses budget decisions on results and outcomes, <br />• Involves and promotes effective communication with all stakeholders, and <br />• Provides incentives to management and staff. <br />A good budget process should also be able to answer the following five questions: <br />1. What are we in business to do? These are the high-level and over -arching reasons the <br />City exists in the eyes of our community. <br />2. What exactly do we do? This is a comprehensive listing of all programs offered by the <br />City along with the associated costs and staff count. <br />3. How do we prioritize programs? Programs are scored against established attributes to <br />determine degree of relevance. Attributes could include the following: 1 1 <br />