Agenda Packets - 1996/09/03 - Laserfiche WebLink

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r ,, iYY 4F REQUEST FOR COUNCIL CONSIDERATION Agenda Section STAFF REPORT Report Number: g i :i r? Report Date: 8/28/96 WORK SESSION MEETING DATE • '•,, ii. \+;nYi September 3. 1996 'o''e's•Partne'14' Item Description: 1997 Budget and Preliminary Levy Administrator's Review/Recommendation: -No Comments to supplement this report -Comments attached. Explanation/Summary(attach supplement sheets as necessary) Summary: As has been discussed at previous work session meetings, I have been attempting, with staff, to progress on the City's policy of establishing program budgeting within city operations. With myself and the finance director both being new, I appreciate the patience and work that has been done to date. In recapping, we have attempted to assess the overall budgeting and fiscal condition of the city first, then identify long-term capital outlays and their relevance to the City's fiscal condition, and finally evaluate the ongoing operating budget and procedures, all with an eye towards the impact on the tax levy. The long-term capital outlays have been reviewed by the Council with the understanding that as a planning document, they could be changed. The overall budgeting condition has been a little harder to clarify, with certain funds being expended towards ero and others with no particular planned expenses matching their fund balance. Bruce and I discussed this ith the Council briefly at the last work session, and will likely need more time to finalize a format for presentation to the Council. As far as operating levels and policies, staff has reviewed operating costs and made cuts in the easy spots. We also spent considerable time reviewing what appear to be either formal or informal practices that have been in place that may not clearly represent actual operation expenses. One practice has been to budget all wages at the fifth step regardless of actual projections. The purpose seems to be to accommodate the need to hold a balance for sick and vacation leave. I would prefer that if that is our need, than it should be shown as such and not confused with what will appear to be an actual cost. By reviewing such practices, and once again analyzing capital outlays, we have been able to reduce the preliminary levy proposal to less than 10%. I realize that the Council is used to having more information on the budget by this time, and perhaps we can discuss this and the fall's budgeting schedule and expectations next Tuesday evening. To date, I feel I have received the Councils' endorsement to pursue the budget in this fashion and would like to reconfirm that September 3, and take advisement from the Council on your needs as we continue. On September 9 the City will need to set its preliminary levy for 1997, the levy that we cannot exceed when the final levy is set in December. Bruce will have a breakdown summary of the budget and his memo explains more of the details. My attempt here was to describe the approach I'm taking with the dual nature of preparing for the levy and budget, and framing the picture in which the 1997 budget fits with future budgets and the City's ability to pay. S