Budget

By Lori R. (Brangwin) Acton

The Budget needs to become proactive rather than reactive. I believe we need to set goals, have vision, see the long term, and plan for it. The budget isn't to be discussed once a year because we have to, or when there's an emergency, but regular established meetings with Departments and the City Manager to evaluate if we are on track, what must change to get us on track, and what goals may need to be altered.

In discussing the budget and in looking at other cities and their approach to the budget, I've been able to gather a lot of data that I think is helpful and can go into creating our own unique approach to the budget. This is not something that should be discussed only one month out of the year and then shelved again until something happens or we are forced to deal with it.

If we did our home finances the way we handle City finances, or ran our companies the way we handle City finances, we would be in serious financial trouble, or even closed down.

Yes, we have a Finance Director--who's day to day job is to worry about these things, to ensure the bills are paid, the revenues collected. The director then advises the other department heads on what their budgets are (after City Council sets them) and they report in on their various topics. It all sounds so reasonable and easy.

So where do the problems stem from? My belief is that this no-holds-barred, once-a-year treatment of the budget is simply not working in the best interests of the city.

I would like to see it handled much differently, so I propose a different approach.

This is how I envision the budget being handled as the city moves forward:

Budget Preparation Schedule

The budget process begins in July with the Council retreat. At the retreat, City Council establishes the goals and objectives for the coming year and direction on where future budgets should go. This needs to be an uninterrupted weekend devoted entirely to the budget and goals-no pet projects, no distractions. The idea is to come up with a firm, reasonable direction that the Council would like to see the city go during the next year.

In Nov, the capital planning process begins. All departments develop 10-year capital project lists. From these, the City Manager develops a 5- and 10-Year Capital Program to present to Council in Dec for approval. This provides the base for developing the budget for the next year with an eye toward the years beyond as well.

Also in Nov, the Budget Division prepares core data. This data includes salary information, health insurance rates, rates for vehicle maintenance and rental, workers' compensation and general liability rates. Along with this data, forecasts of current year revenue and preliminary revenue forecasts for the next year are completed. In late Dec (or early Jan), the core data is distributed, along with budget instructions for the upcoming year to the various city departments.

Departments meet internally and with their respective advisory commissions to develop their budget requests. The requests are due back to the Budget Division in late Feb through the first week in March. The Budget Division compiles all the submissions in preparation for the budget conferences with the City Manager and the various departments. The conferences are held in late March, with final decisions on what will be included in the Recommended Budget, which will be completed by early April. Throughout April, the Budget Division balances and prepares the Recommended Budget. The document is submitted to City Council in early May, with a study session on the Recommended Budget. The budget is submitted for approval on First Reading, after a public hearing in early June, with Second Reading and final approval occurring in late June.

Please note that the proposed dates and months will need to be adjusted as the Budget runs on the fiscal year and not the calendar year. I also understand that it is very difficult to get things accomplished in the month of December given the holidays, but this is a commitment I feel needs to be made.

At this time, I do not believe we have any advisory commissions, but just as we've established the Oversight Committee for Measure L, I believe we should do the same for the entire budget and all departments. The city needs to be held accountable to the people who call it home!