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Home My WebLink About12-16-2014 B2 PresentationBudget Foundation Workshop December 16, 2014 1 2015-17 Financial Plan Recommendation 1.Review and approve the 2015-17 Financial Plan Goal Setting Process and revision to the date of the Council’s Strategic Budget Direction meeting to April 21, 2015. 2.Receive and file the Local Revenue Measure (Measure Y) Integration Report. 3.Review and approve proposed changes or direction regarding the City’s budget policies related to infrastructure investment, reserve funds, pension unfunded liabilities, and purchasing processes. Presentation Overview 3 Goal-Setting Process & Schedule Overview Priorities Survey and Community Forum Council Candidate Goals Goal-Setting Workshop Financial Plan Policies Infrastructure Investment Capital Fund Fleet and IT Reserve Policies Unfunded Pension Liabilities Purchasing and Procurement Policy Update 4 Community Priorities Survey 5 Open City Hall 6 Community Forum 7 Community Forum Objectives 8 Community… Presents ideas Listens to other community members Learns how ideas fit with current or ongoing City activities Expresses preferences: Major City Goals Measure G priorities Integration of Measure G Priorities 9 Measure Y Integration Report General purpose measure provides Council flexibility to respond to new circumstances and challenges Community Forum input helps Council align Major City Goals and Measure G priorities “To protect and maintain essential services and facilities --such as open space preservation; bike lanes and sidewalks; public safety; neighborhood street paving and code enforcement; flood protection; senior programs; and other vital services and capital improvement projects --shall the City’s Municipal Code be amended to extend the current one-half percent local sales tax for eight years, with independent annual audits, public goal-setting and budgeting, and a Citizens’ Oversight Commission?” Community Forum Agenda 10 Welcome 6:00 Process, current goals, local sales 6:05 tax priorities and fiscal outlook Public Comment 6:30 What, Why, How Flip Chart sheets posted Mayor’s Closing remarks 8:40 Participants “vote with dots” 8:45 Adjourn 9:00 Council Goal Setting Workshop 11 Objectives for Council Goal- Setting Workshop: January 24 12 Council… Develops Major City Goals and Other Important Objectives for 2015-17 Identifies connections between use of Measure G revenues and Major City Goals Identifies ideas for changes in other programs and services Criteria for Major City Goals Be legitimate to our genuine beliefs (real, supported). Agreed upon by a Council majority. Limited in number for comprehension, communication & focus. Set forth in one document: the Financial Plan. Be clear & understandable. Established as a high priority & a real commitment. Reflect major goals that cannot be achieved without Council support Can be translated into the performance goals & objectives of employees at all levels of the organization. Created within a supportive atmosphere where participants are not afraid to state their suggestions for improving goals or objectives. Reflect genuine consensus: while unanimous agreement is not required, they should be accepted to the point where resistance to them is reduced or eliminated. 13 Criteria for Other Important Objectives Share similar characteristics as Major City Goals in terms of composition and clarity. Have less intense support among a majority of Council members. Represent desirable but not critically important goals. Achievement of these objectives may rely significantly upon other resources. 14 How do we accomplish it? 15 Council “homework” assignments due January 20, 2015 @ 9:00 A.M. Review goals by category Formulate candidate goals Discuss and weight the goals Identify connections between use of Measure G revenues and Major City Goals Note suggestions to changes in other programs and services Goal-Setting Workshop Agenda 16 Refreshments 8:30 Welcome 9:00 Purpose, process & guidelines 9:05 Review goals by category, discuss relationship 9:10 of goals to current activities, select candidate goals Public Comment if not previously presented Noon Lunch Break (staff compiles candidate goals) 12:15 Discuss, clarify, and rank goals 1:15 Note suggestions for changes in other programs 2:15 Identify Major City Goals & Measure G 3:15 priorities for 2015-2017 Discuss next steps and adjourn 4:00-4:30 Council Goals “Homework” please provide distinct suggestions in separate items Due 1/20/15 17 Council suggestions about changes in other programs and services to fund desired goals Due 1/20/15 18 Priority Scale 19 Most important, highest priority for City to achieve over the next two years. Very important goal to achieve. Important goal to achieve. Address if resources are available. Defer to 2015-17 for consideration. Not a priority goal. Suggestion: total points available to allocate = # of candidate goals x 3. Suggestion: Major City Goals (majority of Council give 4’s or 5’s); Other Important Objectives (majority give 3’s or 4’s) Council Workshop Conclusion 20 Review results to identify “Major City Goals” “Other Important Objectives” Connect Measure G revenues and Major City Goals Council Member Guidelines 21 Encourage community groups/citizens to submit written comments about desired goals. Invite citizens to participate in Community Forum to listen and learn from their neighbors. Receive comments from community & acknowledge their input without prematurely expressing your point of view. Assure the community that you are willing to listen openly to all perspectives. Focus your submission of suggested goals on a short list of key priorities to target City resources (not to exceed seven candidate goals). Council Member Guidelines 22 Avoid publicizing your submission of suggested goals. Give yourself flexibility by not publicly staking positions in advance of the January 24, 2015 Goal-Setting Workshop. Use this process as a way to learn from citizens & Council colleagues about what’s important. Explore areas where the Council can come together for positive action. Recognize that while an important step, it’s only the first step in the process of developing the two- year budget. Policies 23 Budget and Fiscal Policies Consistent and comprehensive fiscal policies provide the foundation With each Financial Plan, the Council reviews its fiscal policies to determine if any updating is necessary This evening’s proposed changes are intended to implement Major City Goals, or otherwise improve transparency and efficiency in our operations Infrastructure Investment Capital Fund Proposed change Council direction to develop a new policy in support of an investment fund for new infrastructure projects 1.Purpose is to provide City with ability to make strategic infrastructure investments when public benefits can be achieved 2.Functions similar to Open Space Acquisition Fund Infrastructure Investment Capital Fund Prior Direction The new policy would implement the current Major City Goal work program for economic development 1.Outgrowth of infrastructure financing study sessions 2.Does not subsidize developer fair share Fleet Replacement Fund Proposed Change During the 2015-17 Financial Plan period, the City will establish and maintain a minimum fund balance in the Fleet Replacement Fund equal to $500,000 for the emergency replacement of vehicles that are damaged beyond repair… IT Replacement Fund Proposed Change During the 2015-17 Financial Plan period, the City will establish and maintain a minimum fund balance in this fund equal to $400,000 for the emergency replacement of equipment that is damaged beyond repair and not covered under the City’s property insurance program. Fleet and IT Replacement Funds Reason for the change Further analysis has concluded that a 20% reserve based on replacement value is not sustainable or necessary for these replacement funds. The proposed reserve amounts are reasonable in light of potential losses without creating a shortfall of resources needed for other important priorities. Unfunded Pension Liabilities Proposed Change Direction to develop a new budget policy relating to reporting the City’s unfunded pension liabilities. Total PERS costs will be shown in the Five-Year Fiscal Forecast as the sum of the “normal” cost and the cost associated with paying down the “unfunded liability” Unfunded Pension Liabilities Prior Direction The Fiscal Health Major City Goal directed staff to prepare a cost/benefit analysis regarding the City’s ability to prepay its unfunded pension liabilities. This recommended policy is an outgrowth of that effort. Further analysis scheduled for Winter 2015 Purchasing Policies and Procedures Proposed Change Add the following policy language to the Productivity section of the budget policies: H. Maintaining City purchasing policies and procedures that are as efficient and effective as possible. Purchasing Policies and Procedures Next Steps 1.Changes will be evaluated that streamline the purchasing process, which will enhance timeliness of delivering services. 2.A separate item with draft procedure changes will be brought to Council in Winter 2015 to implement the policy. Recommendation 1.Review and approve the 2015-17 Financial Plan Goal Setting Process and revision to the date of the Council’s Strategic Budget Direction meeting to April 21, 2015. 2.Receive and file the Local Revenue Measure (Measure Y) Integration Report. 3.Review and approve proposed changes or direction regarding the City’s budget policies related to infrastructure investment, reserve funds, pension unfunded liabilities, and purchasing processes.