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HomeMy WebLinkAbout09-02-2014 B4 Financial Plan Schedule for 2015-17City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Katie Lichtig, City Manager, Wayne Padilla, Director of Finance & Information Technology Prepared By: Joe Lamers, Budget Manager SUBJECT: FINANCIAL PLAN SCHEDULE FOR 2015-17 RECOMMENDATION Approve the goal setting process and timetable for development of the 2015-17 Financial Plan. REPORT-IN-BRIEF This report sets forth the proposed Council goal setting process and schedule for the development of the City’s 2015-17 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 2015 cover the review and ultimate adoption of the budget generated by staff following the Goal Setting and Strategic Budget Direction: Proposed Key Council Meeting Dates: Goal-Setting Process for 2015-17 Thursday, November 13, 2014 Special Meeting 7:00 to 10:00 p.m. 1) Setting the Stage. Provide the background needed for goal-setting by considering the current status of both long and short term goals previously adopted by the City. This meeting will include an update of the General Plan status, Capital Improvement Plan projects, and Major City Goals. Tuesday, December 16, 2014 Regular Meeting 2) Budget Foundation. Finalize plans for the goal-setting process including deadline for submitting Council Member candidate goals; review Financial Plan policies and organization of the Financial Plan; review of results from 2013-14; hold initial discussion on options to be considered for paying down the unfunded liabilities. Tuesday, January 13, 2015 Special Workshop 6:30 to 9:30 p.m. 3) Community Forum. Consider comments and suggested goals from residents, community groups, other interested individuals and Council advisory bodies. Saturday, January 24, 2015 Special Workshop 8:30 AM to 4:00 PM 4) Council Goal-Setting Workshop. Discuss candidate goals presented at Community Forum; consider Council member goals; prioritize and set Major City Goals. Tuesday, April 14, 2015 Special Workshop 6:00 to 10:00 p.m. 5) Major City Goal Work Programs & Strategic Budget Direction. Conceptually approve detailed work programs for Major City Goals adopted by the Council; set strategic budget direction for preparation of the 2015-17 Financial Plan. 9/2/14 B4 B4 - 1 Financial Plan Schedule 2015-2017 Page 2 Proposed Key Council Meeting Dates: Budget Adoption for 2015-17 June 8, 9, 10, 2015 (Mon, Tues, Wed) Special Workshops 5:00 to 9:00 p.m. Hold workshops to review and discuss Preliminary Budget - June 8: General Fund operating programs - June 9: General Fund CIP projects - June 10: Enterprise Fund programs, CIP projects and rates Tuesday, June 16, 2015 Regular Meeting Continues Financial Plan review and adopts budget. Holds special meeting on June 23 if needed to continue review and adopt budget. DISCUSSION Based on the City’s experience over the years, informed by Council and community feedback, staff recommends beginning the two-year 2015-17 Financial Plan process with the Council setting goals for the most important initiatives 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 the City's budgetary process which is: Linking what we want to accomplish for our community over the next two years with the resources necessary to do so. As mentioned above and as reflected in the schedule at Attachment 1, staff is recommending a five- step process for identifying and reaching agreement on the Council’s Major City Goals. Each of the five major goal setting steps is described in greater detail below: 1. “Setting the Stage” Workshop. A special meeting on November 13th will be devoted to a comprehensive review of the status of current City plans, goals, policies and programs. This is an especially appropriate start as the Council goal-setting process should take into consideration the City’s adopted long-term plans, current two-year goals, and updated fiscal outlook. Accordingly, staff plans to present reports on the following: a. Status of General Plan Programs. Staff plans to present an overview of the status of each General Plan program in all of the ten Elements (over 400 programs in total). Organized by Element, staff will provide a short New Council-Elect Members In order to “set the table” in a timely manner for the goal-setting and budget process, this meeting must be scheduled before any new Council members take office in December. However, the “Council-Elect Members” will be known by then and will be encouraged to attend. With its emphasis on revisiting existing plans, policies and goals, this is an excellent “primer” for any new Council members. For this reason, staff will highlight the importance of this workshop with Mayor and Council candidates, and strongly encourage them to put this on their calendars to attend if they are elected. B4 - 2 Financial Plan Schedule 2015-2017 Page 3 summary of each program, whether it has been completed, and if not, a high level assessment of how difficult it will be to complete. As we did two years ago, we also plan to present a similar summary of the status of the programs in the Conceptual Physical Plan for the City’s Center. While this is not a General Plan Element, it is referenced in the General Plan, and several of its programs are closely linked and provide a framework for Downtown development. 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 implement our General Plan at build-out based on plans and policies previously adopted by the Council. c. Status of Our Current Two-Year Major City Goals: Carryovers and Spin-Offs. Since some of the Major City Goals may not be complete by June 2015 the unfinished work needed to complete them may be candidate Major City Goals for 2015-17. For those goals where the specific work programs for 2013-15 may be completed by June 2015, there may be “spin-off” tasks as a result. This is especially true for work programs where the objective was to complete plans or studies. A likely “spin-off” into 2015-17 may be implementation of 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. It will also identify candidate projects for deletion or deferral based on their status and priority relative to other needs that have emerged since they were initially approved. The volume of information to be conveyed at the “Setting the Stage 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 16th will be dedicated to generating policy guidance from Council that will serve as the foundation for the City’s budget and goal-setting process. Staff plans to cover the following topics at this workshop: a. Finalize plans for the Community Forum and Council Goal-Setting Workshop. Staff will present a proposed approach for the forum and goal-setting workshop at this meeting. b. Review Financial Plan policies contained in Section H of the 2013-15 Financial Plan and update or recommend changes as appropriate. This may include proposed changes to the existing fund balance targets for enterprise funds and capital replacement funds. c. Review the organization of the Financial Plan and obtain Council guidance regarding the style of presentation expected or preferred by Council. d. Present the Comprehensive Annual Financial Report and discuss financial results for 2013- 14 and their impact on the budget process. B4 - 3 Financial Plan Schedule 2015-2017 Page 4 e. Hold initial discussion on the options to be considered for paying down the unfunded liabilities. Based on Council feedback, staff would return in February with the plan reflecting these options. Getting direction from the Council in February will be helpful in crafting the recommendations contained when Strategic Budget Direction is sought in April 2015. 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 13, 2015, the purpose of this 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 developed during the fall of 2014 and submitted to staff in final form by the end of December 2014. 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 community groups, governmental agencies, media organizations 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 New Times in order to encourage the broadest possible participation in this process. Information about the goal-setting and budget process will also be placed on the City’s web site. Staff will explore other means such as social media outlets, that will help spread the word about this important opportunity. Staff also intends to again insert a Community Budget Bulletin in all utility bills inviting the public to participate in the goal-setting and budget process, and soliciting comments on the “three to five most important things for the City to do in the next two years.” In the past this approach has generated hundreds of replies which were transcribed in their entirety and distributed to the Council along with a summary of “top themes.” 4. Council Goal-Setting Workshop. Following the receipt of written and oral comments during the Community Forum, the Council goal-setting workshop will be held on Saturday, January 24, 2015 in a suitable venue such as the City/County Library Community Room. This will be 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 up to five goals before the workshop which staff will organize and distribute prior to the workshop. As in the past, staff recommends the use of a professional facilitator to assist in prioritizing input into three categories, Major City Goals, Other Council Objectives, and Address as Resources Permit. Using an independent facilitator allows all Council members to participate fully in the process; and allows staff to devote our efforts to listening and learning. Moreover, the facilitator can assist the Council ensuring that the number, size and scope of the goals established are appropriate. B4 - 4 Financial Plan Schedule 2015-2017 Page 5 5. Major City Goal Work Programs and Strategic Budget Direction. Following the Council goal-setting workshop, a critical part of this process, referred to as Strategic Budget Direction, affords the City Council an early opportunity to review the draft work programs and associated financial resources proposed to accomplish Major City Goals established by the City Council in January. At this stage of the process the City Council provides direction on any changes needed to refine these work programs and resource allocations to better achieve the desired outcomes. Additionally, the City Council is asked to provide the City Manager with the key policy direction needed to allocate resources in line with Council’s expectations or to further amend budget or fiscal policies that align with Council direction. This process is extremely helpful so that the Preliminary Financial Plan that is presented to the City Council and community in May mirrors the Council’s expectations as much as possible. At this meeting staff will prepare detailed work programs for the Major City Goals and present them to Council in a special meeting and workshop scheduled for April 14, 2015 in order to: 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 in achieving it. Each work program will provide the following information: Objective. What do we specifically want to accomplish? (This will be based on the objective adopted by the Council at the January 24th 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? What key challenges, constraints or obstacles can we expect in achieving this goal? What concerns 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 blocks in defining and scoping the work program, and in monitoring our progress in accomplishing 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 achieve 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?” B4 - 5 Financial Plan Schedule 2015-2017 Page 6 6. Budget Hearings and Budget Adoption. Budget hearings (also known as “Fund Reviews” for the enterprise funds) are currently scheduled for three consecutive meeting days in June. This was done in the last budget cycle to address the council’s concerns that too much time came between meetings when the hearings were spread out over a 2 to 3 week period. This is a perfect opportunity for the Council to reflect on this schedule versus other options (3 meeting over a ten day window as an example). Council Advisory Body Participation Consistent with past Council direction, the advisory bodies will again play an important role in the goal-setting process by providing the Council with their recommended goals for 2015-17. Staff will provide advisory body members with background materials outlining their important role in this process and have scheduled an update on this process at the next quarterly meeting with the Mayor and advisory body chairs on October 16, 2014. Lastly, support staff liaisons are already beginning to work with Advisory Body Chairs in scheduling time for this purpose at upcoming advisory body meetings. SUMMARY This report sets forth the proposed Council goal setting process and schedule for the development and ultimate adoption of the City’s 2015-17 Financial Plan. Council will be asked to consider whether the budget workshop dates are acceptable or need to be changed to suit their needs for reviewing the preliminary financial plan. FISCAL IMPACT There is no direct fiscal impact from the adoption of the 2015-17 Financial Plan and Goal Setting Schedule. The Goal Setting Process and the development of the Financial Plan inherently take considerable amounts of staff time. Publicizing the process and notification of interested parties will engender nominal advertising and mailing costs covered through current allocations in the City Clerk and Finance and IT budgets. ATTACHMENTS 1. Proposed 2015-17 Financial Plan Schedule t:\council agenda reports\2014\2014-09-02\financial plan schedule for 2015-17 (padilla-lamers)\financial plan schedule for 2015-17.docx B4 - 6 City of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number Attachment 1: 2015-17 Financial Plan Calendar: Proposed Key Dates for Council When Who What September 2, 2014 Council Approves 2015-17 Financial Plan Schedule October 16, 2014 City Manager, Finance Updates advisory body chairs on the goal-setting process at the Mayor's quarterly meeting November 3, 2014 Finance Begin sending letters inviting participation in goal-setting process to community groups and interested individuals. Begin inserting Community Budget Bulletins in utility bills November 13, 2014 Special Workshop 7:00 to 10:00 p.m. Council Holds Setting the Stage workshop on status of General Plan programs, long-term capital improvement plan (CIP), status of Major City Goals and objectives, and CIP projects November 15, 2014 Advisory Bodies Provide recommended goals to Finance November 20, 2014 Finance Distributes consolidated listing of draft recommended goals to advisory bodies for their review December 16, 2014 Regular Meeting May start early PM Council Budget Foundation. Finalizes goal-setting process and plans for Community Forum. Reviews and provides guidance regarding Financial Plan policies. Reviews financial results for 2013-14 and general fiscal outlook. Hold initial discussion on options to be considered for paying down the unfunded liabilities. January 5, 2015 Finance Receives written comments from community groups and interested individuals, and any changes in goals from advisory bodies. January 13, 2015 Special Workshop 6:30 to 9:30 p.m. Council Holds Community Forum at the Ludwick Community Center to receive and review goals presented by individuals, community groups, and advisory bodies January 24, 2015 Special Workshop 8:30 a.m. to 4:00 p.m. Council Holds Saturday Goal-Setting Workshop to discuss candidate goals presented at January 13 Community Forum; discusses Council member goals distributed on January 22; prioritizes and sets Major City Goals February 17, 2015 Council Mid-Year Budget Review; Staff to return to Council with unfunded liability repayment plan options. April 14, 2015 Special Workshop 6:00 to 10:00 p.m. Council Approves detailed work programs for Major City Goals. Sets strategic budget direction in preparing Preliminary Financial Plan May 13, 2015 Planning Commission Reviews CIP for consistency with General Plan May 26, 2015 City Manager Finalizes budget recommendations and issues preliminary budget 9/2/14 B4 B4 - 7 Financial Plan Schedule 2015-2017 Page 2 June 8, 9, 10, 2015 Special Workshops Preliminary Budget 5:00 to 9:00 p.m. Council Holds evening workshops to review and discuss Preliminary Budget - June 8: General Fund operating programs - June 9: General Fund CIP projects - June 10: Enterprise Fund programs, CIP projects and rates June 16, 2015 Council Holds continued Financial Plan review and adopts budget June 23, 2015 Council If required, holds special meeting to continue review and adopt budget B4 - 8