HomeMy WebLinkAboutSpecial 2022-07-12 Powerpoint Shown at Meeting - 2023-2024 Biennial Budget2023-2024 Budget
JULY 12, 2022
CITY COUNCIL BUDGET TOWN HALL
Introduction
•Process
•Challenges
•Considerations
•Budget
•The economic plan that focuses the city’s financial and human resources
on the accomplishment of specific goals through the programs and
services provided to the community.
Budget Process
•State law requires budget adoption by end of year
•Adopted budget MUST be balanced
•Balanced budget:
•Revenues plus beginning fund balance equals expenditures plus ending
fund balance
•City Council cannot adopt a deficit budget
Reserves & Contingency
•Reserve Policy: 18% of prior year ongoing general fund revenue
•Contingency: 10% of prior year general fund revenues
•No Reserve or Contingency funds can be used without Council
approval and the funds must be repaid.
•Favorable to bond rating agencies, lower interest costs
•Safety net for unpredictable crises, like the pandemic
Restricted Revenues
•Many revenue sources are restricted to certain purposes
•Examples: Grants, real estate excise tax, parking tax, impact fees,
lodging tax, solid waste tax, automated traffic cameras.
•Budgeted only for specific expenditures, not general operational
needs
Enterprise Funds
•Enterprise funds: established to account for operations of an
enterprise activity
•Three utilities, golf course
•Cannot subsidize the General Fund, but do pay for internal services
such as HR, IT, Finance
Drafting the Budget
•Resolution 2014 –City Council Financial policies
•Budget process, revenue, capital project prioritization and funding
•Ongoing revenues pay for ongoing expenditures
•One-time revenues pay for one-time expenditures
2023-2024 Budget Challenges
•Pandemic recovery –revenues lagging
•Inflation –highest in 40 years, anticipating 8-9%
•Inflation affects all aspects of a city’s budget –staffing, supplies
Priority-Based Budgeting
•Transparency
•Shows how resources are allocated to programs
•Organizes budget by services rather than departments
Current and Next Steps
•Community outreach –surveys, community events, email
•Draft General Fund budget presented to Council in August
•Formal presentation by Mayor to Council in October
•October –November: Council deliberations and public hearing
•Adoption in December