HomeMy WebLinkAboutFIN 2020-07-27 Item 1C - Budget - Budget Process and CalendarCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: July 21, 2020
SUBJECT: 2021-2022 Budget Process Update
ISSUE
Review activities and calendar associated with the 2021-2022 budget process
BACKGROUND & DISCUSSION
Activities to Date
The City Council kicked off its budget process with the Council Retreat on February 22, 2020,
working with guest facilitator Mike Bailey to review municipal budgeting, the financial structure of
the city, and a draft budget calendar for the remainder of the year. A follow up budget work
session had been scheduled in April but was postponed as the severity of the pandemic
emergency was realized and the Council transitioned to virtual meetings.
At the same time, it was necessary to better understand the financial implications of the pandemic,
specifically the loss of sales tax revenue and other revenue due to business closures. Staff work
was redirected to addressing the financial impacts and the internal budget preparation process
was delayed. The Finance Committee spent all its meetings in April and May working on mitigation
of these financial impacts, leading to the passage of Resolutions 1987 and 1988.
At this time, departments are currently in the process of working on their budget proposals.
Departments are also working on implementing the next phase of priority -based budgeting, which
includes identify performance measures that can be incorporated into the decision -making
process. Existing fees and charges for services are currently under review and possible
adjustments to certain existing revenue sources could be recommended at a later date.
Work Session Outcomes
The City Council convened the special Budget work session on June 29, 2020. The purpose of
this meeting was to affirm a common understanding of the need to reduce the 2021-2022 budget,
including city services, and for Councilmembers to give policy level input toward Administration's
development of the 2021-2022 budget. All Councilmembers had the opportunity to weigh in with
their concerns and ideas. While the ideas expressed were given by individuals, these common
themes emerged:
• Evaluate and provide options for affordable service levels
• Consider restructuring of City organization if needed
• Focus on the needs of the residential community
41
INFORMATIONAL MEMO
Page 2
• Emphasize equity and social justice
• Provide transparency and communication with Council and the community
Public Outreach
While the budget process was shortened due to COVID-19, the City Council and Administration
both desire community engagement to the extent feasible. The City is also limited to online and
mail -based outreach, with community members providing feedback via the web, social media,
mail and phone. Staff is working on an outreach plan that includes an online survey and a City
Council sponsored virtual Town Hall meeting later this summer. Staff will offer translated materials
and engage with community -based organizations to maximize participation.
Next Steps
As described above, the delay in beginning the budget development process, coupled with
Council committees and other meetings held remotely, necessitated an adjustment to the
calendar previously shared with the City Council. With approval by the Finance Chair and Council
President, full Council workshops will be conducted in lieu of Council committees reviewing
budgets prior to review by the full Council.
The attached budget calendar provides a proposed timeline for the budget process and includes
placeholders for possible workshops in the latter part of September as well as the month of
October.
Workshops could be structured as follows:
1. Funds that do not rely on general fund support including: utility funds, drug seizure, lodging
tax, firemen's pension
2. General fund including revenue
3. Capital project funds, debt service, 6-year financial plan
4. Follow up to any outstanding items not addressed in previous workshops
All workshops and review of the complete budget must be completed in time for Council to adopt
the budget in December.
As a reminder, a previously planned budget software contract was deemed too expensive and
not an ideal long-term solution, therefore staff must continue to use Excel to build the budget.
This will result in a simplified budget process by removing non -essential information from the final
document. The City, with Council support, is planning on a completely new financial accounting
and reporting system update later this year that will include a complete budget software tool that
will be available to help create the 2023-2024 budget.
RECOMMENDATION
Staff is seeking Committee discussion and feedback on the work session outcome themes, public
outreach plan, and calendar for the remainder of the year.
ATTACHMENTS
Proposed Budget Calendar
42
Tentative Budget Timeline
Dates are all Mondays and represent the week of...
Holiday week, no Council Committee or Council meetings
Programs for enterprise funds identified
Budget prep files to departments
Enterprise fund programs scored
Council/Administration Workshop
Review and update financial policies
Finance communicates budget expectations to departments
Existing programs reviewed, updated as needed
Draft performance measures
Preliminary budgets due to Finance
Goals and objectives, accomplishments due to Finance
Projected year-end estimates due to Finance
Community outreach
Council workshop: Utility funds, Firemen's Pension, Debt Service
Council workshop: general fund
Council workshop: capital projects funds, golf course
Council workshop: final review of budget, if needed
Draft budget presented to Council
Property tax legislation
Public hearing on budget and property tax legislation
Budget Adopted by Council
April May
6 13 20 27 14 11 18 25 11
2020
June July August
8 15 22 29 6 13 20 27 3 10 17 24 31
I I I I I I I I I
I I I
I I I X I I I I I I I
I IFin I I ICpW I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I X I I I I
x
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
I I I I I I I I I I
7
3eptembe
14 21
I
I
I
I
Reg
I
I
I
I
I
i
r
28
October
5 12 19 26 2
I I I
I I I
I I I
I I I
I I I
I I I
I I I
I I I
I I I
I I I
I I I
I � I
I I I
November
9 16 23
X
Fin,
I I I I cow
I I I
I I I I
Reg
30
December
7 14 21 28
X
/�21/2020 1:00 PM