Workshop Item: 2 - Joe Huss, Finance Director
Title
2014 GENERAL FUND BUDGET DEVELOPMENT WORKSHOP II
Background
The 2014 Budget preparation process began with the May 9, 2013 Workshop. Building on the assumption-based process that was initiated for the 2013 budget, Council direction was to develop two levy scenarios for 2014, and begin to develop assumptions for tax base growth and a target tax rate for 2015 and beyond. Additionally, staff continues to develop and refine assumptions for all General Fund operating divisions.
Concurrent with the development of assumptions, staff has identified what are labeled as “Budget Drivers” - those items that compel the need for resources and direct where those resources should be appropriated.
As is typically the case at this point in the process, revenue assumptions and forecasts are ahead of funding assumptions. Thus, funding requests are not yet fully developed, but there is a good indication of funding requirements under current service levels. While the focus at this Workshop will be more on developing a consensus regarding assumptions being used rather than on actual dollars being appropriated, staff will be seeking direction regarding revenue assumptions as well as program assumptions in order to return in July with an initial draft budget.
The work-plan for developing the 2014 budget is summarized as follows:
- May - Establish initial budget direction, expectations, and broad assumptions.
- June - Analyze impact of initial assumptions on operations and refine operational 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 2014 tax levy budget.
Recommendation
Staff is seeking Council direction on the following:
- Tax base projections for 2014, 2015, and 2016-18
- Revenue assumptions
- Identifying budget drivers
- Establishing 2014 budgeting assumptions; and funding and operating/service levels.