HomeMy WebLinkAboutFIN 2022-01-24 Item 1B - Budget - 2023-2024 Biennial Budget ProcessDoi
of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Vicky Carlsen, Finance Director
CC: Mayor Ekberg
DATE: January 18, 2022
SUBJECT: 2023 — 2024 Biennial Budget Process
ISSUE
Review process associated with the development and adoption of the 2023 - 2024
biennial budget.
BACKGROUND and DISCUSSION
Activities to Date
As of January 1, we are live with Phase 1 of our new financial software system, Finance
Enterprise. Phase 1 includes general ledger, accounts payable, accounts receivable, and
cashiering. Staff will be able to utilize the new system for some, but not all budgeting
processes. The system will provide higher accuracy and better tracking of changes as the
budget is drafted. Until payroll is implemented, we will still need to calculate labor costs
using Excel.
We have also outlined several touch points with City Council in the first few months of the
year; prior to budget review session. The touch points are an opportunity to discuss
various aspects of the budget and budget process prior to formal review. The following
areas have been identified and staff is requesting input from the Committee on these
and/or other ideas for touch points.
- City structure from a budgeting perspective including existing policies, best
practices, bond rating, etc.
- City revenues including historical data, restrictions, limitations on growth, and how
each major revenue source is utilized
- Labor and other costs the City has little or no control over
- Capital projects overview including prioritization and funding options
- Proposed budget process and calendar
Public Outreach
The City Council and Administration both desire community engagement early in the
budget process so that community has the ability to participate and provide input before
decisions are made. Due to the ongoing effects of the pandemic, the current plan is for
online opportunities. If it is deemed safe to meet in-person at a later date, in-person
opportunities can always be added. Public outreach possibilities include:
- Online survey
- Virtual community meetings
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INFORMATIONAL MEMO
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- Mail -based outreach
- Feedback via the website, social media, and phone
Next Steps
Next steps include developing a budget calendar that incorporates Council Committee
touches on the budget, workshops with the full Council, and due dates for each element
of the budget process.
As a reminder, the budget must be adopted prior to the end of 2022 in order for the City
to have authority to meet financial obligations. The last City Council meeting of the year
is anticipated to be December 12, 2022.
RECOMMENDATION
Staff is seeking Committee discussion and feedback on the proposed process for the
upcoming budget cycle.
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