HomeMy WebLinkAbout01/09/1989, 2A - 1989-91 FINANCIAL PLAN PROCESS J'
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No ACOUNCIL AGENDA R ORT
FROM: William C. Statler, Director of Finance
SUBJECT: 1989-91 FINANCIAL PLAN PROCESS
OVERVIEW
As discussed in the 1987-89 Financial Plan, as well as during the review of the 1988-89
Budget, early City Council involvement is anticipated in the preparation of the 1989-91
Financial Plan. Provided in Attachment A is an overview of the projected timeframes for
the preparation of the 1.989-91 Financial Plan, which reflects early City Council
involvement in the review and discussion of policies and objectives, with concurrent
development of financial projections at the staff level. With this approach, the
policies which guide budget preparation as well as City Council priorities as developed
during the review and discussion of major objectives can be incorporated into the Draft
Financial Plan prior to its formal submittal to the City Council.
FINANCIAL PLAN PROCESS
As noted in the cover memorandum to the user fee analysis previously distributed to the
City Council, it is anticipated that the review and discussion of the results of the
Financial Services Study will be an integral component in the preparation of the 1989-91
Financial Plan. As such, the consideration of Phase I of the Financial Services Study
(User Fee Analysis) and related cost recovery policies has been scheduled as the first
topic of discussion in the 1989-91 Financial Plan Preparation process.
Provided in Attachment B is a tentative schedule of study sessions and public hearings
along with proposed topics. As reflected in this tentative schedule, it is anticipated
that the Financial Services Study will serve as a major vehicle in the review and
adoption of major financial and budgetary policies; and that the review and development
of the Council Work Program will serve as the primary vehicle for the development of
major financial plan objectives.
PROGRAM ORIENTATION
As in past years, it is anticipated that the City Council's primary focus during the
1989-91 Financial Plan process will be on the development and approval of policies,
objectives, and programs, and that staff will have the primary responsibility for
developing the required supporting documentation and detail. However, in order to keep
the City Council informed during the staff preparation phase of the financial plan and
budget, a working notebook similar to that used by the Department of Finance will be
maintained in the City Clerk's Office for Council reference of all budget instructions,
preparation assumptions, and related correspondence to the operating departments used in
the budget preparation process.
SUMMARY
Early City Council involvement in the 1989-91 Financial Plan process is envisioned
through their review of major policies and objectives prior to the formal submission of
the Draft Financial Plan document. During this preparation process, it is anticipated
that the review and consideration of the Financial Services Study and Council Work
Program will be integrated into the process in establishing policies and objectives for
the next two years. RECEIVED
89-91 FP/FPPROCESS JAN 4 M
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ATTACHMENT A
�. 1989-91 FINANCIAL PLAN PREPARATION SCHEDULE
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JAN FEB MAR APR MAY JUN
-----------------------------------------------`- ----------• ----------------------------------------
City Council. Review (Studies Sessions)
of Policies and Objectives (Financia(
Services Study) - Note 1 •••••�P••�••••••••�M•*
Issuance of Budget Instructions and
Staff Preparation of Budget • Mote 2 •••••••••••••••••••
Mid Year Review of Financial Position/
Revenue and Expenditure Trends •
Staff Presentations to Management Team •••••
Formal Budget Hearings I I I I •••b•�•••••••►•••
City Council Adoption of Budget
---------------•---------------------.-------------.-.-------------------------.-........-----........
NOTES:
1. The first City Council Study Session is scheduled for January 9, 1989..
2. Distribution of budget instructions is scheduled for January 19, 1989.
PUBLIC HEARINGS
April 18, 1989 (Regular Council Meeting):
A. Introduction to Draft Financial Plan
B. Review of draft policies and procedures
May 2, 1989 (Regular Council Meeting):
Review of Draft Operating Programs - significant staffing and expenditure changes.
A. Public Utilities D. Leisure, Cultural, and Social Services
B. Public Safety E. Community Development
C. Transportation F. General Government
May 16, 1989. (Regular Council Meeting):
Review of Draft Capital Improvement Plan.
May 30, 1989 (Adjourned Regular Council Meeting):
Continued review and discussion of the Draft Financial Plan.
June 20, 1989 (Regular Council Meeting): -
Final adoption of the 1989-91 Financial Plan and 1989-90 Budget.
89-91 FP/FPSCHEDULE
ATTACHMENT B
TENTATIVE FINANCIAL PLAN SCHEDULE
STUDY SESSIONS
January 9, 1989, 12:00 pm:
A. Overview of 1989-91 Financial Plan Process
B. Review and discussion of User Fee Analysis/Cost Recovery Policies
February 13, 1989, 4:00 pm:
A. Mid-Year Budget Review/Preliminary 1989-91 Revenue Projections
B. Preliminary review and discussion of Council Work Program in developing
objectives for the next two years.
C. Review of Financial Plan organization and consideration of any recommended
changes in organization,. financial reporting, or revenue distribution formulas.
February 27, 1989, 4:00 pm:
A. Review and discussion of Phase II (Comprehensive Financial Planning) of the
Financial Services Study
B. Consideration of Financial Plan policies such as:
9 Cost Recovery Policies • Fund Balance Designations
(Governmental and Enterprise Funds) and Reserves
o Investments s Capital Improvement Management
• Debt Financing • Personnel Administration/
Human Resources Management
• Appropriation Limit
March 13, 1989, 4:00 pm:
Finalize review and discussion regarding policies and objectives for incorporation
into Draft Financial Plan:
A. Financial Services Study
1. User Fee/Cost Recovery Policies
I Financial Policies
B. Draft Council Work Program
March 27, 1989, 4:00 pm:
Concluding study session if required to finalize guidelines prior to submission of
Draft Financial Plan..