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HomeMy WebLinkAboutCOW 2009-10-26 Item 4D - Budget - Mid-Biennium Budget Amendment, 2010 Property Tax Levy and 2011-2012 Biennium Budget Co UNCIL AGENDA SYNOPSIS v ILA iv S+ Initials ITEM NO. 0 ,t Meetirz Date Prepared b Mayors remeiv Council r a 1 10/26/09 SH t✓j� I /Y1%� sibs ITEM INFORMATION CAS Number 09-154 ORIGIN/ ORIGINAL AGENDA DATE: OCTOBER 26, 2009 A<,KND I•rNM TrrI.I. Budget process for mid biennium budget amendment, 2010 property tax levy, and adoption of 2011 -2012 biennial budget. C.\ 1'I.,<.()It Dirczt.r.rton Motion Resolution Ordinance n Bzd ward Public Teanng Workshop Altg Date 10/26/09 2\1tg Date Mtg Date Mtg Date Mtg Date A Ps Date Mtg Date 11/05/09 (S P< >NS< 112 Council Mayor 4dm Svc:r DCD Finance n Fire Legal P &R Police in P!J' SPONSOR'S The Informational Memorandum summarizes the statutory deadlines, and other suggested SUMM \Rl' process items, for the mid- biennium budget amendment, 2010 property tax levy, and 2011 -2012 biennial budget. This item is for informational purposes only. Council will discuss the budget process at the 10/26/09 COW meeting, and at the Budget Workshop on 11/5/09. RI..\'1I.1NW'1 1) BY COW Mtg. CA &P Crnte F &S Crnte n Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE. 10/20/09 RECOMMENDATIONS: SP<)NS<nt /ADMIN. Finance Department CoMMI"rrEI? Forward to C .O.W. COST IMPACT FUND SOURCE EXPI?NI)ITURE RIsQll!RJ?t AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Continents. MTG. DATE RECORD OF COUNCIL ACTION 10/26/09 11/05/09 MTG. DATE ATTACHMENTS 10/26/09 Informational Memorandum dated 10/15/09 Minutes from the Finance and Safety Committee Meeting of 10/20/09 �5 TO: FROM: DATE: SUBJECT: ISSUE City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Rhonda Berry Finance and Safety Committee Shawn Hunstock, Finance Director October 15, 2009 2009 -2010 and 2011 -2012 Budget Process and Deadlines Jim Haggerton, Mayor State statute provides specific deadlines for developing, implementing and modifying biennial budgets. The City needs to pass a mid biennium budget amendment for 2009- 2010 by December 31, 2009. A property tax levy for 2010 must also be passed by November 30, 2009. The process and deadlines for adoption of the 2011 -2012 budget also need to be discussed and decided upon in the coming months. BACKGROUND Regarding the mid biennium adjustment, RCW 35A.34.130 requires an ordinance be passed and public hearing conducted for the mid biennium adjustment to the biennial budget. The law requires notification regarding the public hearing. These activities are scheduled for November and December, as discussed below. RCW 84.55.120 also requires a public hearing prior to the adoption of a property tax levy ordinance. RCW 84.52.070 specifies the levy ordinance must be passed by November 30 The normal biennial budget process is outlined in RCW 35A.34, as discussed below. DISCUSSION Mid Biennial Budget Adjustment Following are the specific dates for the mid biennium adjustment process: G November 3 Proposed final adjustments for 2009, and proposed 2010 budget, are presented to the Finance and Safety Committee. November 5 Budget Workshop with Council to review proposed 2009 and 2010 budgets, and begin review of proposed CIP. changes to changes to 37 INFORMATIONAL MEMO Page 2 November 9 Public Hearing conducted at the Committee of the Whole meeting. Publication for this meeting will take place from October 26 through November 2 "d Continue discussion of 2009 and 2010 budget changes and proposed CIP. November 23 Continued discussion of proposed changes to 2009 and 2010 budgets, continued review of proposed CIP at COW. December 7 Adoption at Regular Meeting. Please note the bulleted items above and below that are in italics are ones that are suggested, but warrant further Council feedback before a schedule is finalized. 2010 Property Tax Levy Below is the schedule for adoption of the 2010 property tax levy: November 17 Draft property tax levy presented to Finance and Safety Committee. November 23 Public Hearing on levy ordinance at Committee of the Whole meeting. Public hearing will be advertised November 9 Adoption of the property tax levy ordinance will occur the same evening at a Special Meeting. This will insure the ordinance is passed by the November 30 deadline. 2011 -2012 Biennial Budget Following is a suggested timeline, and some deadlines that are specified in state statute, for adoption of the biennial budget during 2010: February 22 Review preliminary 2009 revenues and expenditures. May 6 Council Budget Workshop. Review policy -level input on current and proposed initiatives. May 10 CaII for departmental budget estimates (revenue and expenditures). Budget instructions and forms sent to department heads. June 4 Department heads complete budget estimates and send to Finance department. June 7 -25 Finance department review with each department. June 25 Finance department prepares revenue estimates for 2011 -2012. July 16 Department budgets reviewed, and if necessary adjusted, and returned to departments based on Mayor's Office priorities. 38 C l temp\ XPGrpWisellnfoMemol0- 26- 09BudgetProcess.doc INFORMATIONAL MEMO Page 3 July 20 First review of revenue projections and departmental requests by the Finance and Safety and Transportation Committees. July 27 First review of revenue projections and departmental requests by the Utilities and Community Affairs and Parks Committees. August 2 -31 Continued review of projections and departmental requests by all Committees. September 27 Proposed preliminary budget filed with City Clerk and presented at Committee of the Whole meeting. October 4 Proposed preliminary budget presented to Council at Regular Meeting. October 18 Public Hearing on proposed preliminary budget at Regular Meeting. November 1 Preliminary budget presented to Council at Regular Meeting. November 8 Final Public Hearing on proposed budget at COW. November 22 Public Hearing on 2011 property tax levy at COW November 29 Adoption of property tax levy ordinance at Special Meeting. December 6 Adoption of budget ordinance for 2011 -2012 at Regular Meeting. RECOMMENDATION No formal recommendation at this time. The draft schedule above is presented for Council information and feedback. This item is scheduled to be discussed at the October 26, 2009 Committee of the Whole meeting. C:ltemp\XPGrpWisellnfoMemo 10- 26- 09BudgetProcess.doc 39 40 Finance Safety Committee Minutes October 20. 2009 Pace 2 general Council desire to be responsive and diplomatic in the process of making decisions that directly affect City employees. It is with these considerations that a specific amount of funding has not been targeted for reduction. At this time, the intent is to save funding and reduce expenditures whenever or wherever possible. The Committee did not reach unanimous approval for a recommended action in regards to this item. The following items were agreed to: This item will move forward to full Council for discussion with the Mayor's recommendations, after the November 3 General Election (to the November 9 COW). Non represented City employees should be asked to provide input on potential wage options. FORWARD TO NOVEMBER 9 COW FOR DISCUSSION. B. Contract Renewal for 2010 M.J. Durkan for Lobbying Services This is a professional services renewal contract with M. J. Durkan, Inc. for local lobbying service. This will be a one -year contract with terms, scope of services and fees remaining the same as last year. The Committee recognizes the importance of maintaining relations with the State especially during these challenging economic times. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 26 COW FOR DISCUSSION. C. Authorization to Transfer Funds for Additional 2009 Budget Reductions Staff is seeking full Council authorization to transfer funds from various City Department budgets in the amount of $392,416 to Department 20 for additional budget reductions. Council has previously approved funds transfers including a City -wide 3% budget reduction and a transfer from the 2009 Equipment Replacement fund. This third transfer comes from selected departments based on identified cost savings opportunities. Committee Chair Linder requested clarification in the Fund Transfer line item for Public Works Emergency Services. This line item reflects a cost savings as a result of the vacant CERT position. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 26 COW FOR DISCUSSION. D. Budget Process and Deadlines Based on Council request, staff has provided a detailed, dated list of major steps involved and required in the biennial budget process as outlined in the informational memo included in the Committee agenda packet. Kimberly Matej is currently working with Shawn Hunstock to incorporate this information into a table that can be utilized and updated annually. The Committee noted that most of the budget process is dictated and required by law. The majority of preparation taking place prior to legally mandated deadlines is at City discretion. Committee Members expressed confidence that this detailed process will allow input on budget items in a timely and efficient manner. The documentation incorporates this Council policy -level review at various times throughout the year, including an early Spring (May) review of sales receipts and potential budget modifications. The information and timeline Council will be discussing on October 26 is based on budgetary requirements without implementation of Initiative 1033. If 1 -1033 passes, the City will have ample time to react strategically. However, Committee Chair Linder requested that Shawn also provide the initial three or four steps that will be required of the City in the event of I -1033 passage. For example, passage will require setting the property tax level to the highest possible limit. FORWARD TO OCTOBER 26 COW FOR DISCUSSION.