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Home My WebLink AboutCOW 2008-05-27 Item 3A - Ordinance - 2009-2010 Biennium Budget COUNCIL AGENDA SYNOPSIS o i1ir► s2 r „lt a/s I1E1w I& A 0 1 Meeting Date i Prepared b A Ibla}•or's review I Council review p kss i 05/27/08 1 BN 11 _..A .iL T- 06/03/08 I BN 1 Q iaoa 1 I 1 3 ITEM INFORMATION I CAS NUMBER: 08-062 I ORIGINAL AGENDA D. \.TE. MAY 27, 2008 AGEND ITEM TITLE An ordinance establishing a biennial budget process C.\11 .GORY Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 05/27/08 1ltg Date iItg Date 1ltg Date 06/02/08 1Itg Date \Itg Date AN Date SPONSOR Cottntzl MYla"yor Adm Svcs DCD Finance Fire Legal PeR Police PW SPONSOR'S A presentation was made to the Council on March 24, 2008 regarding the topic of biennial SUMAI :\RY budgeting. Given the general consensus, an enabling ordinance is be presented for consideration. In order to proceed with a biennial budget process for the 2009 -2010 period, an enabling ordinance must be adopted by June 30, 2008. The Finance Safety Committee requested discussion at the 5/27 Committee of the Whole meeting regarding some changes to the budget review process. (see FS minutes) RI \'ri ;Av il) BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. n Parks Comm. n Planning Comm. DAIS: 05/20/08 RECOMMENDATIONS: SPONSOR /ADMIN. Approve Ordinance COMMI1TEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE EFPI;NDITURI REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: 1 MTG. DATE I RECORD OF COUNCIL ACTION 05/27/08 MTG. DATE I ATTACHMENTS 05/27/08 Informational Memorandum dated 5/15/08 Ordinance in draft form I I Minutes from the Finance and Safety Committee meeting of 5/20/08 To: Finance Safety Committee From: Kevin A. Fuhrer, Finance Director Date: May 15, 2008 Subject: Draft Ordinance Establishing Biennial Budgeting On March 24, 2008, administration made a presentation to the Committee of the Whole (COW) on the topic of biennial budgeting. Given the general consensus, administration committed to shepherding an enabling ordinance through the Council review and approval process. A draft ordinance is attached for our discussion at the committee meeting on May 20. I would like to underscore one important point as we refresh this issue. In order to proceed with a biennial budget process for the 2009 -2010 period, an enabling ordinance must be adopted by June 30, 2008. Following the committee recommendation to forward the matter, it is anticipated that a review will occur at the May 27 COW meeting and pending further approval the ordinance will be scheduled for final council consideration at the June 2 meeting. In closing, I look forward to reviewing this info nation with you. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING A BIENNIAL BUDGET PROCESS; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the Washington State Legislature has provided that any city legislative body may by ordinance elect to have a two-year biennial budget in lieu of the annual budget, which is otherwise provided for; and WHEREAS, the provisions of RCW Chapter 35A.34 determine that an ordinance establishing the two -year fiscal biennium budget for the City of Tukwila must be adopted no later than June 30, 2008, in order to be effective January 1, 2009; and WHEREAS, on March 24, 2008, a biennial budget presentation was made to the City Council, and the Mayor is recommending approval of the two -year biennial budget; and WHEREAS, biennial budgeting will provide an opportunity to streamline government services through better long -range and strategic financial planning, a longer perspective on program planning, and consolidation of effort invested in the budget development and approval process, thereby improving services to the citizens of Tukwila; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Establishment of a Two -Year Fiscal Biennium Budget. Pursuant to RCW Chapter 35A.34, the City Council hereby establishes a two-year biennium budget for the City of Tukwila, beginning with the two-year biennium, which begins January 1, 2009. The 2009 -2010 Biennial Budget and all subsequent budgets shall be prepared, considered, and adopted under the provisions of this ordinance and RCW Chapter 35A.34, which is hereby adopted by reference. Section 2. Mid- Biennial Review. Pursuant to RCW Chapter 35A.34 the City Council shall provide for a mid- biennial review, and modification shall occur no sooner than eight months after the start, nor later than the conclusion of the first year of the biennium. The Mayor shall prepare a proposed budget modification and shall provide for publication of notice of hearings consistent with publication of notices for adoption of other City ordinances. Such proposal shall be submitted to the City Council and shall be a public record and be available to the public. A public hearing shall be advertised at least once and shall be held at a City Council meeting no later than the first Monday in December and may be considered from time to time. At such a hearing or thereafter, the Council may consider a proposed ordinance to carry out such modifications, which such ordinance shall be subject to other provisions of RCW Chapter 35A.34. Section 3. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such C: \Documents and Settings \All Users \Desktop\ Kelly \MSDATA Ordinances \Biennial Budgeting.doc GLksn 5 /21 /2008 Page 1 of 2 invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 4. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2008. ATTEST/ AUTHENTICATED: Jim Haggerton, Mayor Christy O'Flaherty, CMC, City Clerk Filed with the City Clerk: APPROVED AS TO FORM BY: Passed by the City Council. Published: Effective Date: Office of the City Attorney Ordinance Number. C: \Documents and Settings \All Users Desktop \Kelly \VLSDATA\ Ordinances \Biennial Budgeting.doc GLksn 5/21/2008 Page 2 of 2 o 2 City of Tukwila ;a, 1 If I -9) 1� f Finance Safety Committee t soe FINANCE AND SAFETY COMMITTEE Meeting Minutes May 20, 2008 5:00 p.m. PRESENT Councilmembers: Dennis Robertson, Chair; Pam Linder and Kathy Hougardy Staff: Rhonda Berry, Don Lincoln, Bob Noland and Kimberly Matej Guest: Kevin Fuhrer and Chuck Parrish CALL TO ORDER: Committee Chair Robertson called the meeting to order at 5:15 p.m. L PRESENTATIONS No presentations. II. BUSINESS AGENDA A. An Ordinance Establishing Biennial Budaetinu Both Kevin Fuhrer (former Finance Director) and Bob Noland (current Interim Finance Director) attended the meeting to discuss the City's desire to transition from a current one -year budget to a two year budget. An ordinance establishing the biennial budget will need to be adopted by the City Council no later than June 30, 2008, in order to be effective January 1, 2009. As the Interim Finance Director, Bob expressed his confidence in moving forward with the transition to a 4 biennial budget. He shared his experience with both annual and biennial budgeting. In addition, as a finance director, he shepherded the City of Kennewick through the transition from a one -year to two -year budgeting process. Discussions included the pros and cons of annual budgeting compared to biennial budgeting. Staff also provided information regarding the difference between two types of biennial budgeting: two one -year budgets verses one two -year budget. The current draft ordinance allows the City to proceed with biennial budgeting in either form. Staff recommends one two -year budget as it provides the greatest benefits in utilization of a biennial cycle. The Committee supports the staff recommendation. The Committee would like to recommend a discussion at the May 27 COW to entertain some changes in the overall budget review process (i.e.: removing the budget review process at the Committee level and proceeding directly to a COW, holding a special work sessions in lieu of a COW, etc.). UNANIMOUS APPROVAL. FORWARD TO MAY 27 COW FOR DISCUSSION. B. Januarv/February Sales Tax Revenue Report Kevin Fuhrer returned to Committee to review the January/February Sales Tax Revenue Report. Kevin reported that he was not concerned with the noted decrease in January or year -to -date receipts, particularly given the past pattern of collections. He expects regular peaks in revenue to return, but has no speculation on how such programs as the economic stimulus checks will effect overall receipts. The City is still experiencing a fair amount of building activity, 75 additional stores are expected to open at Westfield Southcenter Mall over the summer, and streamlined sales tax takes effect July 1. All traditional graphs were included in the report with the exception of the line graph, which at this early stage of the year does not reflect any comparable trends. INFORMATON ONLY.