Hansen memo to Thomas Budget Issues

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Ala./‘.1.2.-2t0-5 NJ,. Memorandum • To: Jonathan Thomas, Charter Commission Chair Charter Commission Members From: Charles Hansen, Finance Director Item Title/Subject: Budget Provisions in the City Charter Date of Report: June 9, 2003 The League of Minnesota Cities produces an annual "Guidelines for Preparing City Budgets." The most recent one was published in June 2002 for the preparation of the 2003 budget. Most of its information is still relevant. A new one should be out in the near future. The Guidelines are 128 pages long and actually contain information on a range of topics beyond budgeting. I have made a copy of the full Guidelines for the use of the Charter Commission. Within the Guidelines is a twelve-page section that specifically deals with the budget requirements specified in Minnesota State Statutes and a timeline of these events and requirements. A copy of this section is attached. The City Council and staff have strived to have an open and informative budget 0 process. For instance, for the last two budget cycles, the City of Mounds View was exempted from the statutory requirement to hold a "Truth in Taxation Public Hearing." The City Council chose to hold the public hearing anyway. Presenting the budget in an easily understandable fashion is a daunting task. The City has so many operations, including police, fire, streets, parks, recreation, administration, cable TV, community center, water, sanitary sewer, storm sewer, street lights, golf course, debt service, capital projects, economic development and tax increment financing, that it is impossible to give a quick or simple summary of them in a budget. The 2003 operating budget is 137 pages long. There are several enhancements that I want to incorporate in the 2004 budget that will make it even longer. The Mayor wants to look at alternate formats that may make the budget more understandable. Even when these improvements are made, presenting the budget will be challenging because people won't sit still long enough to hear all of it. None of this should deter the Charter Commission from addressing the budget. I have two suggestions. First is: don't duplicate state statutes. When the statutes change, there is a conflict with the charter and we have to follow the statutes. Second is to avoid mandating more detail. What is needed is a more effective way of conveying the big picture. There already is and will always be too much detail. 0 I provided a memo to the Charter Commission dated November 13, 2002 that suggested a change to the Charter. That change regarded the level of budgetary