Workshop Item: Joe Huss, Finance Director
Title
2018 GENERAL FUND BUDGET DEVELOPMENT WORKSHOP
Background
The 2018 Budget preparation process began with discussions at both the May 4 and May 18 Workshops. The discussion at those Workshops focused on reviewing the City’s tax base growth and establishing the 2018 levy. Council direction was to begin budget development under the assumption that the total of all city and EDA levies would be set at an amount such that the combined tax rate for all city and EDA levies would not exceed the 2016-17 overall combined tax rate of 35.901%. As reported at the two Workshops, current estimates indicate the capacity to increase overall levies by $1.8 million and still maintain the targeted tax rate of 35.901%.
There was general Council consensus to allocate the additional $1.8 million in tax levy as follows:
• Maintain 2018 levies for the PMP and EDA at 2017 amounts with no adjustments - $250,000 for the PMP and $650,000 for the EDA
• Increase Debt Service levy by $98,250 to fund scheduled debt service payments
• Remainder ($1,711,000) would be preliminarily allocated to the General Fund
Pursuant to the schedule presented to Council on May 18, staff will present for Council’s review the departmental requests that are currently under Finance Department review. The budget requests will initially be reviewed by Finance staff before moving on to the City Manager. The review will be based on the service assumptions and priority-based budgeting methods that have been developed over the last several years. Thus, staff is reviewing division level responsibilities, the identification of programs and activities needed to carry out these responsibilities, and the estimated cost of the resources required to achieve the programs’ goals.
In July 21, staff will present for Council review and discussion an overview of the 2018 General Fund Budget that incorporates initial departmental requests and City Manager priorities.
The work-plan for the remainder of this year is summarized as follows:
• May - Establish initial budget direction, expectations, and broad assumptions.
• June - Review preliminary staff requests; provide further direction on the preliminary 2018 tax levy and service assumptions.
• July - Review draft budget; further refine assumptions; and begin prioritizing services
• August - Develop Preliminary Tax Levy and Budget
• September - Adopt Preliminary Tax Levy and Budget. Council establishes target levy and service levels.
• October-November - Prioritize and reprioritize based on ability to fund.
• December - Complete prioritization process, and adopt 2018 tax levy and budget.
Recommendation
Upon review of the departmental requests, provide comment and direction regarding prioritization of the 2018 budget.