HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/11/2009 - UPDATE ON THE CITY MANAGERS 2010-2011 RECOMMENDED DATE: ' August 11, 2go9 WORK SESSION ITEM
STAFF: Darin Atteberry FORT COLLINS CITY COUNCIL
Pre-taped staff presentation: none
SUBJECT FOR DISCUSSION
Update on the City Manager's 2010-2011 Recommended Budget
EXECUTIVE SUMMARY
The City Manager's 2010-2011 Recommended Budget will be delivered to City Council and
available to the public on September 4, 2009. This work session will review the economic
assumptions that are being incorporated into the City Manager's 2010-2011 Recommended Budget
and provide an overview of the work that has been completed to date. Staff will outline the
remaining key steps and discuss the City Council process regarding adoption of the Recommended
Budget. Discussion of the Recommended Budget will take place during four work sessions in
September and October.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Staff will present an update on the Budget process and address any questions or issues that arise
from the conversation with City Council.
1. Does City Council have any questions regarding the proposed schedule for discussion of the
Recommended Budget?
2. Does City Council have any questions or concerns about the budget assumptions which are
being included in the Recommended Budget?
BACKGROUND
The 2010-2011 Budget process began in earnest following the City Council retreat in May 2009.
Since then, significant progress has been made:
• Documented City Council priorities and shared with interdepartmental City teams (Results
Teams) and department staff(sellers)
• Solicited community feedback on budget priorities; input from boards and commissions on
key result areas; boards and commission/public forum; online spending exercise
• Developed Requests for Results with input from City Council, board and commission
members and the public
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• Nearly 375 budget offers submitted and categorized in seven key result areas
• Results Teams reviewed offers and performance indicators, negotiated with sellers and
submitted their prioritized list of funding recommendations to the City Manager and Budget
Lead Team
• City Manager and Executive Team'(Budget Lead Team) are reviewing Result Team
recommendations and making adjustments based on the overall budget situation.
The Budget Lead Team is in the process of finalizing the City Manager's 2010-2011 Recommended
Budget,which will be delivered to City Council and available to the public on September 4, 2009.
City Council Budget Meetings
The City Council has a series of work sessions scheduled in September and October to discuss the
proposed 2010-2011 budget. Each work session will include staff presentations regarding specific
result areas, followed by an opportunity for questions and discussion. The final work session has
been reserved for City Council discussion regarding overall priorities, policy issues and funding
allocations between results.
Key dates for City Council discussions and public hearings are as follows:
Meeting Date Topic
August 11, 2009 Work Session General Budget Overview
Presentations, Questions and Discussion:
September 8, 2009 Work Session 1. Economic Health
2. Neighborhood Livability
3. Cultural and Recreational Opportunities
September 15, 2009 Regular Meeting Budget Public Hearing
Presentation, Questions and Discussion:
September 22, 2009 Work Session 1. Safe Community
2. Environmental Health
Presentation, Questions and Discussion:
September 29, 2009 Work Session 1. Transportation
2. High Performing Government
October 6, 2009 Regular Meeting Budget Public Hearing
October 13, 2009 Work Session General Discussion—Final Direction
October 20, 2009 City Council Meeting First Reading of Appropriations Ordinance
November 3, 2009 City Council Meeting Second Reading of Appropriations Ordinance
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Budget Assumptions
The economic downturn has negatively impacted City revenues. The two revenue categories that
have been impacted the most are General Fund revenues, including sales and use tax, and revenues
related to transportation, including gas taxes,vehicle taxes,etc. Sales and use tax collections have
been declining in 2009, as have investment earnings and development-related fees. The revenue
forecasting model indicates that sales tax collections will decline approximately 3% in 2009 from
2008. City staff is monitoring all revenue sources carefully and will utilize the most current
information available to set 2010-2011 projected revenues. Additionally, the Utilities Funds
represent nearly 47%of the City's total budget. Proposed fee changes will be discussed during the
Council's budget review process.
The City Manager's Recommended Budget is being developed on these key assumptions:
• Focus on City Council and community priorities
Maintain existing operations and seek ways to deliver desired services more efficiently
• Funding for public safety will remain flat; reductions will be taken in other key result areas
• Staff and service reductions will be required to balance the budget
• Limited use of reserves - it is appropriate and prudent to use some reserves to avoid drastic
cuts during the current economic downtown,yet this will be done with caution,recognizing
that reserves are a temporary solution and the economic situation could get worse before it
gets better.
Citizen Involvement
An upcoming step in this Budget process will be to seek additional input from residents regarding
the Recommended Budget. A citizen/board and commission workshop will be held on September
2, 2009 from 6:30 — 8 p.m. at the Lincoln Center, to present the City Manager's Recommended
Budget and gather feedback. A web-based prioritization activity will also be introduced on the
City's website, www.fcgov.com/budget. Finally, citizens will have the opportunity to participate
in public hearings as indicated in the schedule listed above.
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