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HomeMy WebLinkAbout09-04-2012 b1 financial plan scheduled 2013-15FROM :Katie Lichtig, City Manage r Charles Bourbeau, Director of Finance & Information Technolog y SUBJECT : FINANCIAL PLAN SCHEDULE FOR 2013-1 5 RECOMMENDATIO N Approve the Goal Setting Process and Timetable for development of the City's 2013-15 Financia l Plan . REPORT-IN-BRIEF This report sets forth the proposed Council goal setting process and schedule for developing th e 2013-15 Financial Plan . The key dates and steps in the goal-setting process are summarized below and then discussed in greater detail . The Council meeting dates shown in June cover the revie w and ultimate adoption of the budget generated by staff following the Goal Setting Process : Key Council Meeting Dates : Goal-Setting Process and Budget Adoption for 2013-1 5 Tuesday, November 13, 2012 Special Meeting 7:00 to 10 :00 PM Tuesday, December 1 8 Regular Meeting Note: May start early t o allow for other busines s Tuesday, January 8, 201 3 Special Meeting 6:30 to 9:30PM Saturday, January 2 6 Special Meetin g 8 :30 AM to 4 :00 PM Tuesday,April 9 Special Meetin g 7:00 to 10 :00 PM ©Setting the Table .Provide the background needed for goal-settin g by considering the current status of both long and short terms goal s previously adopted by the City and place them in the context of the City's current general fiscal outlook . q Budget Foundation .Finalize plans for the goal-setting proces s including deadline for submitting Council Member candidate goals ; review Financial Plan policies and organization of the Financial Plan ; review financial results from 2011-1 2 ©Community Forum .Consider comments and suggested goals fro m residents, community groups, other interested individuals and Counci l advisory bodies . ®Council Goal-Setting Workshop .Discuss candidate goal s presented at Community Forum ; consider Council member goals; prioritize and set major City goals . q Major City Goal Work Programs .Conceptually approve detaile d work programs for major City goals adopted by the Council ; se t strategic budget direction for preparation of the 2013-15 Financial Plan . B1-1 2013-15 Financial Plan Schedule Page 2 Hold workshops to review and discuss Preliminary Budge t - June 10 : Overview and General Fund operating programs . - June 11 : General Fund CIP projects . - June 12 : Enterprise Fund programs,CIP projects, and rates . Continues Financial Plan review and adopts budget . Holds special meeting on June 25 if needed to continue review an d adopt budget . DISCUSSIO N Based on the City's experience over the years, informed by Council and community feedback, staff recommends beginning the two-year 2013-15 Financial Plan process with the Council setting goal s for the most important things for the City to accomplish over the next two years . This has been a successful approach in assuring the most optimal achievement of the fundamental purpose of th e City's budgetary process which is : Linking what we want to accomplish for our community over the next two years with th e resources necessary to do so . As mentioned above and as reflected in the schedule at Attachment 1, staff is proposing to agai n use a five-step process for identifying and reaching agreement on the Council's Major City Goals . Each of the five major goal setting steps are described in greater detail below : June 10,11,12Tue,Wed,Th Special Workshop s 7:00-10 :00 PM Tuesday, June 1 8 Regular Meeting • 1 . "Setting the Table" Workshop .A special meeting on November 13 th devoted to a comprehensive review of the status of curren t City plans, goals, policies and programs . This is an especially appropriate start as th e Council goal-setting process should tak e into consideration the City's adopted long- term plans, current two-year goals, and updated fiscal outlook . Accordingly, staff plans to present comprehensive and succinc t reports on the following : Status of General Plan Programs.Staff plans to present an overview of th e status of each General Plan program i n all of the ten Elements (over 40 0 programs in total). Organized b y Element, we will provide a shor t summary of each program, whether it New Council-Elect Members In order to "set the table" in a timel y manner for the goal-setting and budge t process, it must be scheduled befor e any new Council members take offic e in December . However, the "Council - Elect Members" will be known by the n and can be encouraged to attend . In fact,with its emphasis on revisiting existing plans, policies and goals, thi s is an excellent "primer" for any ne w Council members . For this reason, w e will highlight the importance of thi s workshop with Mayor and Counci l candidates, and strongly encourag e them to put this on their calendars t o attend if they are elected . • B1-2 2013-15 Financial Plan Schedule Page 3 has been completed, and if not, a high level assessment of how difficult it will be t o complete . As we did two years ago, we also plan to present a similar summary of th e status of the programs in the Conceptual Physical Plan for the City's Center .While thi s is not a General Plan Element, it is referenced in the General Plan,and several of it s programs are closely linked . b .Long Term Capital Improvement Plan .This will provide a "high level" summary of the estimated costs of the new facilities and infrastructure that will be needed to implemen t our General Plan at build-out based on plans and policies previously adopted by th e Council . Staff will ask Council to address the establishment of new funds dedicated to I T replacement and Major Capital Facilities during the policy setting portion of th e subsequent Budget Foundation Workshop in December . Status of Our Current Two-Year Major City Goals : Carryovers and Spin-Offs .Some of our major city goals may not be complete by June 2013 ; as such, the "carryover" wor k on them may be candidate Major City Goals for 2013-15 . For those goals where th e specific work programs for 2011-13 may be completed by June 2013, there may be "spin- off' tasks as a result . This is especially true for work programs where the objective wa s to complete plans or studies . A likely "spin-off' into 2013-15 may be implementation o f these studies . d .Status of Current Capital Improvement Plan (CIP) Projects .This report will present an overview of the status of all current CIP projects (about 200), organized by function and phase. It will also identify candidate projects for deletion or deferral based on their statu s and priority relative to other needs that have emerged since they were initially approved . General Fiscal Outlook.It is also important to place goal-setting in the context of th e City's current fiscal condition and outlook. Staff will review and discuss the results of the five-year General Fund Fiscal Outlook . This report will highlight key trends and emerging challenges . Staff will also address briefly the prospective impacts of wha t would happen if the Measure Y %r cent sales tax was not renewed . Council and the publi c should be aware that if Measure Y is not reauthorized during the 2014 general election , the City would stop collecting the tax on March 31, 2015 . As a result,only the final thre e months of the 2013-15 Financial Plan period would be impacted . Based on this fact, i t appears that the most appropriate time to address the potential loss of Measure Y revenu e would be during the development of the 2013-15 Financial Plan Supplement for th e 2014-15 fiscal year . The volume of information to be conveyed at the Setting the Table Workshop"makes it most effective to hold a dedicated budget workshop to ensure adequate time for the Council to ask questions and fully discuss these issues . •2. "Budget Foundation" Workshop .This meeting on December 18 th will be dedicated t o generating policy guidance from Council that will serve as the foundation for the City's budge t and goal-setting process . Staff plans to cover the following topics at this workshop : 2013-15 Financial Plan Schedule Page 4 • a Finalize plans for the Community Forum and Council Goal-Setting Workshop .Staff wil l present a proposed approach for the forum and goal-setting workshop at this meeting . In the interim, the background material for the Community Forum and Goal Setting Worksho p from two years ago is provided in Attachment 3 to this report . These background materials provide a good starting point for the process envisioned . b.Review Financial Plan policies contained in Section B of the 2011-13 Financial Plan an d update or recommend changes as appropriate. During this portion of the workshop staff will address the need for establishing new funds and related policies for IT replacement an d Major Capital Facilities . c.Review the organization of the Financial Plan and obtain Council guidance regarding th e style of presentation expected or preferred by Council . d.Present the Comprehensive Annual Financial Report and discuss financial results for 2011 - 12 and their impact on the budget process . Staff recommends dedicating the second Council meeting in December to this workshop . However, if other routine business is required, an earlier start time may be desired . 3.Community Forum .Held on the evening of Tuesday, January 8, 2013,the purpose of thi s workshop is to solicit and discuss suggested goals and work programs from Council advisory bodies, community groups and interested individuals . Advisory Body goals will be develope d during Fall 2012 and submitted to staff in final form by the end of December 2012 . As in the past, staff plans to hold the community forum at the Ludwick Community Center . Other Community Outreach Efforts .Following Council approval of the budget calendar, staff will mail notices to over 175 community groups, governmental agencies, media organization s and interested individuals inviting them to participate in this process . In addition to these notices, staff plans to place display ads in The Tribune, SLO Journal, SLO City News,and Ne w Times in order to encourage the broadest possible participation in this process . Informatio n about the goal-setting and budget process will also be placed on the City's web site . Staff also intends to again insert a Community Budget Bulletin in all utility bills inviting th e public to participate in the goal-setting and budget process, and soliciting comments on th e "three to five most important things for the City to do in the next two years ." In the past thi s approach has generated hundreds of replies which were transcribed in their entirety an d distributed to the Council along with a summary of "top themes ." 4.Council Goal-Setting Workshop .Following the receipt of written and oral comments durin g the Community Forum, the Council goal-setting workshop will be held on Saturday, January 26, 2013 in a suitable venue such as the City/County Library Community Room . This will b e an all day workshop to answer the question, "What are the most important, highest priority things for the City to accomplish over the next two years ." Council will be asked to provide u p to seven goals before the workshop which staff will organize by them and distribute prior to th e workshop . As in the past, staff recommends the use of a professional facilitator to assist i n prioritizing input into three categories, Major City Goals, Other Council Objectives, and • • B1-4 2013-15 Financial Plan Schedule Page5 Address as Resources Permit . Using an independent facilitator allows all Council members t o participate fully in the process ; and allows staff to devote our efforts to listening and learning . 5 . Major City Goal Work Programs .Following the Council goal-setting workshop, staff wil l prepare detailed work programs for the Major City Goals and present them to Council in a special meeting and workshop scheduled for April 9, 2013 in order t o a.Clearly define and scope the work program . b.Ensure that there is a clear understanding of the means used in pursuing the goal . c.Convert the general goal into specific action steps so we can measure progress i n achieving it . Each work program will provide the following information : Objective.What do we specifically want to accomplish? (This will be based on the objectiv e adopted by the Council at the January 26th goal-setting workshop .) Discussion.What are the factors driving the need for this goal? What actions have we already taken in trying to resolve this problem area? What are the key assumptions? Wha t key challenges, constraints or obstacles can we expect in achieving this goal? What concern s or issues will remain unresolved even if the goal is achieved? Who are the key stakeholders ? Action Plan .What specific tasks will we need to accomplish in order to achieve the goal , and when will we complete them? These "action steps" are the fundamental building block s in defining and scoping the work program, and in monitoring our progress in accomplishin g the goal over the next two years . Responsible Department .Who is accountable for getting it done ? Financial and Staff Resources Required to Achieve the Goal .What will it take to achiev e the goal? Do we need to add resources (staffing, contract services, CIP project) to do this ? Outcome : Final Work Product.What will we get if we achieve the goal? What's the "deliverable?" Council Advisory Body Participatio n Consistent with past Council direction, the advisory bodies will again play an important role i n the goal-setting process by providing the Council with their recommended goals for 2009-T1 . Staff will provide advisory body members with background materials outlining their importan t role in this process and scheduled an update on this process at the next quarterly meeting with th e Mayor and advisory body chairs on October 11, 2012 . Lastly,support staff liaisons are alread y beginning to work with Advisory Body Chairs in scheduling time for this purpose at upcomin g advisory body meetings . B1-5 2013-15 Financial Plan Schedule Page 6 •FISCAL IMPAC T There is no direct fiscal impact from the adoption of the 201 3 .-15 Financial Plan and Goal Settin g Schedule . The Goal Setting Process and the development of the Financial Plan inherently tak e considerable amounts of staff time . Publicizing the process and notification of interested partie s will engender nominal advertising and mailing costs covered through current allocations in th e City Clerk and Finance and IT budgets . SUMMAR Y The goal setting process outlined above will enable the City to develop a 2013-15 Financial Pla n reflecting the City's values and priorities as determined through steps that invite communit y awareness and participation along with multiple opportunities for Council decision making on al l critical aspects of the final product . Based on preliminary information it appears that the 2013 - 15 Financial Plan process will mark the first time in many years where the overriding imperativ e will not be how to balance the budget in light of decreasing revenues and unanticipated increase s in costs . However many uncertainties remain that should be more fully fleshed out as we hi t these major milestones in the Financial Plan process . This phased and deliberate evaluation o f our financial conditions will support the informed determination of major city goals . The development of the 2013-15 Financial Plan represents another critical opportunity to build a strong foundation for the long term financial sustainability of the City while providing the critica l services and infrastructure needed to maintain community prosperity and high quality of life . ATTACHMENT S 1 . 2013-15 Financial Plan Schedul e CARFinancial Plan schedule9-4-12.doc • B1-6 • 2013-15 Financial Plan Schedule Page7 2013-15 Financial Plan Calendar Key Dates for Council Attachment 1 • Approves Financial Plan process and schedule . CM/Finance •Updates advisory body chairs on the goal-setting process . Finance • Begins sending letters inviting participation in goal-setting process to community groups and interested individuals . Begins inserting Community Budget Bulletins in utility bills . Advisory Bodies •Provide recommended goals to Finance . Finance •Distributes consolidated listing of draft recommended goals t o advisory bodies for their review. Council •Holds workshop on status of General Plan programs, long-term capita l improvement plan (CIP), status of Major City Goals and CIP projects , and general fiscal outlook. Council • Finalizes goal-setting process and plans for Community Forum . Review and provide guidance regarding Financial Plan policies an d organization of Financial Plan . Reviews financial results for 2011-12 . Finance •Receives written comments from community groups and intereste d individuals, and any changes in goals from advisory bodies . Council • Holds community forum at Ludwick Community Center to receive an d review goals presented by individuals, community groups, an d advisory bodies . Council •Holds Saturday goal-setting workshop to discuss candidate goal s presented at community forum ; discusses Council member goal s distributed on January 24 ; prioritizes and sets major City goals . Depai tments Submit budget requests and major City goal work programs . Council Approves detailed work programs for Major City Goals . Sets strategic budget direction in preparing Preliminary Financial Plan . Analyze department budget requests ; hold briefings with departments ; prepare revenue estimates ; make recommendations to the CM . •Reviews CIP for General Plan consistency. • Finalizes budget recommendations and issues preliminary budget . •Holds evening workshops to review and discuss Preliminary Budget : – June 10 : Overview and General Fund operating programs . – June 11 : General Fund CIP projects . –June 12 : Enterprise Fund programs, CIP projects and rates . •Reviews CIP for General Plan consistency. •Holds continued Financial Plan review and adopts budget . (Holds special meeting on June 25 to continue review and adopt budget i f required.) Wh oWhen What September 4,2012 Counci l October 11, 201 2 November 5 201 2 November 13, 201 2 November 19, 201 2 November 13, 201 2 Special Workshop 7:00 PM to 10 :00 PM December 18, 201 2 Regular Meetin g May Start early PM January 2, 201 3 January 8, 201 3 Special Workshop 6:30 to 9 :30 PM January 26, 201 3 Special Workshop 8 :30 AM to 4:00 PM March 15, 201 3 April 9, 201 3 Special Workshop 7:00 to 10 :00 PM April to Mid-May Budget Review Team , Finance May 22, 2013 Planning Commission May 24, 2013 City Manager June 10,11,12, 201 3 Special Workshops Preliminary Budge t 7 :00 to 10.:00 PM Counci l June 12, 2013 Planning Commissio n June 18, 2013 Council B1-7 Page intentionally lef t blank . •