Workshop Item: 3 - Joe Huss, Finance Director
Title
ASSUMPTION-BASED BUDGETING - 2013 RECAP;
2014 DEVELOPMENT
Background
The 2014 Budget preparation process has begun. Building on the assumption-based process that was initiated for the 2013 budget, staff is seeking Council input and direction in developing and identifying major assumptions for 2014. At this point, assumptions are being developed within a wide framework under three broad categories:
- Legislative Assumptions
- Market and Economic Assumptions
- Service Level/Operational Assumptions
As the budgeting process unfolds, the broad assumptions will lead to more specific assumptions from which revenue and cost estimates will be developed. Refinement of the developed assumptions will continue throughout the budget process to ensure the assumptions, and the budget being developed from these assumptions, align with identified goals and initiatives. It is anticipated that as assumptions are refined, programs will be reviewed and prioritized pursuant to the program's ability to both accomplish organizational goals and meet funding constraints.
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 in establishing 2014 budgeting assumptions, including direction regarding the property tax levy and service levels.