HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/16/2003 - RESOLUTION 2003-151 ESTABLISHING A BUDGET ADVISORY ITEM NUMBER 32
AGENDA ITEM SUMMARY DATE December16, 2003
FORT COLLINS CITY COUNCIL STAFF John F Fischbach
SUBJECT
Resolution 2003-151 Establishing a Budget Advisory Committee
RECOMMENDATION
Staff recommends adoption of the Resolution
EXECUTIVE SUMMARY
As staff and Council wrestle with the many issues related to reconciling resources with services and
facility demands, the Council has determined that a citizen budget committee would be beneficial
Purpose of the Committee
The purpose of the proposed Budget Advisory Committee would be to assist the City Council in
considering the City Manager s recommended budget Initially the Committee would work with
staff to review the proposed exceptions to the 2005 budget including the projected revenues and any
adjustments (increases or reductions)to proposed expenditures The Committee's charge is to help
Council make the best possible decisions regarding the 2005 budget exceptions within the
framework of existing City policies and programs
Term of the Committee
The Budget Advisory Committee would serve an initial term of one year This will enable the
Committee to work with Council and staff on the 2005 Budget Exception Process and participate
in an assessment of whether or not the Budget Advisory Committee is to continue and if so,whether
any changes should be made to the Committee s purpose structure membership or term
Composition of the Committee
There were several suggestions by members of the City Council regarding the size composition
and selection of the Budget Advisory Committee The suggested options are
Option A - A committee of seven (7) selected by the City Council—each Councilmember
selects one member of the Committee
Option B - A committee of nine(9)—seven would be appointed by the City Council (with each
Councilmember selecting one member) and two would be appointed by the City
Manager
December 16, 2003 -2- Item No 32
With either option a pool of names suggested by Councilmembers and the City Manager will be
prepared and distributed As suggested by City Councilmembers potential Budget Advisory
Committee members should have knowledge and experience in developing and administering
organizational budgets—preferably large and multifaceted organizations
Under Option A each Councilmember will select a name from the pool to be a member of the
Budget Advisory Committee If Option B is used each Councilmember will select a member from
the pool and the City Manager would select two additional members from the pool
The membership of the Budget Advisory Committee will be confirmed by a Council Resolution no
later than February 17 2004
ATTACHMENTS
Notes from Council regarding the Budget Advisory Committee
RESOLUTION 2003 151
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING A CITIZEN BUDGET ADVISORY COMMITTEE
WHEREAS under Article III Section 2 of the City Charter,the City Manager is responsible
for annually preparing a City budget, the term of which is to be determined by the City Council by
ordinance and
WHEREAS pursuant to Section 8 1 of the City Code the budget term is presently fixed at
two years and
WHEREAS under Article V Section 4 of the City Charter the City Council is to adopt the
City budget for the ensuing budget term before the last day of November preceding the budget term,
and
WHEREAS the City Council wishes to appoint a citizen committee to assist the City
Council in considering the City Manager's recommended budget
NOW THEREFORE BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows
Section 1 That the City Council hereby establishes a Budget Advisory Committee (the
Committee") to assist the City Council in considering the City Manager's recommended budget
Section 2 That the purposes of the Committee shall be as follows
a To work with City staff to review the proposed exceptions to the 2005
budget including projected 2005 revenues and any adjustments(increases or
reductions) to proposed 2005 expenditures
b to advise Council with respect to its decisions regarding the 2005 budget
exceptions within the framework of existing City policies and programs
Option A
Section 3 That the Committee shall consist of seven members,with each member of the
Council selecting one member of the Committee from a pool of names suggested by City
Councilmembers and the City Manager
Option B
Section 3 That the Committee shall consist of nine members with each Councilmember
selecting one member of the Committee and the City Manager selecting two additional members of
the Committee from a pool of names suggested by Councilmembers and the City Manager
Section 4 That the term of the initial members shall be for a period of one year pending
Council appointment of members no later than February 17 2004 At the end of the first year the
Council will re-evaluate the Budget Advisory Committee and determine whether or not the
Committee will continue and if so identify any modifications as to the Committees purpose
structure membership and term
Passed and adopted at a regular meeting of the City Council held this 16th day of December,
AD 2003
Mayor
ATTEST
City Clerk
Budget Advisory Committee
Notes from Council Interviews
December 9, 2003
1 What is the purpose of the Budget Advisory Committee
a To look at the elements of the budget—revenues and expenditures
b Need to look at the bigger (budget) picture than the exception process and a particular
year
c To advise on the aspects of the budget as we approach the Exception Process for
2005
• Examine the exception process
• Review the projected revenues—what percent what are we going to do (or
not) as a result of these projections, i e do we need to cut more or what do we
phase back into the budget
• Help formulate the recommended changes (exceptions)
d Don t want to re-evaluate the policy regarding our primary secondary support
service categorization
e To help Council work effectively with the tight budget situation
f To provide another set of eyes to review the elements of the budget—revenues and
expenditures and look for opportunities and strategies to bolster funding for
programs like pavement management
g The most important part of governing is the ability to fund (services)
h Keep Council goals clarified regarding the budget constraints and the budget process
i Bring it (the budget) closer to Council help make it more understandable—Council
only seems to skim the surface
j Committee should focus on the budget mechanics stay away from policy
• Is the budget process efficient
• Is the budget language easy to read
• Is the reporting okay
k Help with determining the budget pnonties—within each area are things clearly
identified
1 Look at reserves—are we allocating too much or too little from reserves9
in Consistency—opportunities for areas that need to be addressed
n Committee should review the budget and answer particular questions that Council
has
o To help Council make the best possible decisions on the 2005 budget exceptions
process by adding to the staff information the options that a group of budget experts
might suggest
• In the exception process there may be alternatives or different approaches that
we are NOT considering because they are not being suggested by staff
Council could benefit from having some alternatives to look at
• The anticipated deliverable from the Committee would be a recommendation
for the 2005 exception process that either supports the City Manager s budget
or that provides alternatives to consider
p To analyze the budget and give advice about the budget to Council
q To act as a sounding board for staff, for new ideas and strategies about the budget
r If the Committee is made up of people with valuable experience (in budgeting) they
may see things that we haven t about the budget
s It s important to focus on the purpose (of the Commmttee) and the longevity of the
group
2 Budget Advisory Committee Structure and Representation
Representation
a Maybe draw from existing Boards and Commissions but don t like the restrictions
b Members of the Committee should be knowledgeable people—people with some
understanding/experience of budgets
c Committee needs to be some kind of mix—who have experience (w/operating
services based on a budget not Just a person who is familiar w/numbers and
accounting) For example non-profits understand the relationship between a budget
and delivering services and don t take money for granted Not all from the same
persuasion (///
d Committee members should have
• Financial background
• Business experience
• Budget and economic experience
e Select members who are/deal with everyday business matters
f Select members who understand budgeting
g Members of the committee should have large budget expertise from business,
government or education
h Members should have developed large scale budgets (whether in the field of business
environment education government)—were looking for advice on applying existing
policies in the context of a large scale budget This is not policy development, it s
developing a large scale budget around an established set of policies for services and
facilities It s important to choose people (for the Committee) that have experience
doing this
Size of Committee
a Committee of 7 people
b Council members each appoint a member and John appoints 2—total Committee
would be 9 members
c Doesn t matter Just should be an odd number(e g 7, 9 11)
d Probably 9 to 1 Mach Council member selects one member, John selects two to
four to balance it out
Selection Process
a Each Council member should select a person to set in the Committee
b Each Council member appoint a person and John appoint two additional members to
balance it out
c Open the process up to the community and solicit applications similar to the Board
and Commission process (this 1s my first choice) as a second choice, each member of
Council select a person to be on the Committee
d Council members suggested three names each and John selects the Committee
e Start with the list John put together and ask him to add information about each person
regarding their area of expertise Council members could suggest additional names to
the pool Then Council members would give John their choice and John will call to
find out if they are willing to serve if the person a Council member selected was
NOT willing or able to serve, that Council member would suggest another name
(either from the list or from their own choice)
f It would be helpful for Council to see the list that John originally put together, then
each Council member select someone from that list John could select an additional 2
to 4 members to sit on the committee
Term of the Committee
a The Committee should sunset no later than April 2005, the Council would then re-
evaluate its function, purpose, membership, etc
b The Committee should serve through the 2005 Exception Process, then Council
should re-evaluate (the Committee's function purpose) Have the committee make a
recommendation regarding whether or not to continue
c Consider the Committee a pilot effort through the 2005 Exception Process, then
reassess if we want a group like this to work on the 2006/07 budget (This effort is to
just test a model we might want to use in the future)
d The Committee should have a term of 1 to 1 1/2 years Council should evaluate at the
end of this time and also have the option of asking the members to continue or open it
up to the community (like the selection of other Board and Comrmssion members)
e The Committee should be a `permanent one like other Boards and Commissions
f Council should assess whether the Committee 1s to continue after the initial effort (the
2005 Exception Process)
g Initially the Committee should serve through the 2005 Exception Process then
maybe continue and work on the 2006/2007 budget At the end of the 2005
Exception Process we should assess and get feedback from the Committee, Council
and staff regarding whether or not to continue and 1f any changes are needed 1f we do
continue the Committee
3 Other Notes/Comments
a Council members generally agreed that the Committee, once formed, should select a
chair or convener for now don t see the need for additional facilitation
b There was a suggestion that the Committee report back to the Council on a regular
(monthly or quarterly) basis