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Home My WebLink About04/21_1/1992, C-6 - BUDGET CALENDAR FOR 1992-93 MEETING DATE: I�ui�i�i►IIUIIIIIIIII�� glplll City of san pais OBISPO 4-zl- a COUNCIL AGENDA REPORT ITEM NUMBER: FROM: William C. Statler, Director of Finance SUBJECT: BUDGET CALENDAR FOR 1992-93 CAO RECOMMENDATION Approve the budget review process and calendar for Fiscal Year 1992-93. DISCUSSION Budget Review Process Under the City's two-year financial plan process, the 1991-93 Financial Plan document establishes the primary policy, program and financial guidelines to be used in preparing the 1992-93 Budget. Although budgets are adopted annually under the two-year plan, it is intended that appropriations in the second year of the plan will be based upon the framework and foundation developed during the two-year planning and budgetary process. Accordingly, no major policy or program changes are anticipated for 1992-93 above those already planned in the 1991-93 Financial Plan as modified by the Council during their mid- year budget review. This approach is recommended for three key reasons: ■ Consistency with the Financial Plan policies regarding the two-year budgetary and planning process. ■ Significant workscope of current major City goals and program objectives which are anticipated to be carried-over into 1992-93. ■ Uncertainties regarding the economic recovery in California (and how it will affect us locally) combined with possible State legislative actions similar to SB 2557 that may further weaken our ability to fund municipal services. i For reference purposes, the Preface to the 1991-93 Financial Plan which outlines its purpose, format, and contents is provided in Attachment 1. Budget Calendar In considering the 1992-93 Budget, the following calendar and review schedule is recommended at this time: ��►,►n�►i��illlllllli� lllllll city of San t. 3 OBIspo GiN COUNCIL AGENDA REPORT ■ Council approves budget calendar 4/21/92 and review process for 1992-93 ■ Council budget study session 5/12/92 I Overview of financial condition Review of sales tax trends by Hinderliter de Llamas Consideration of any departmental budget requests Consideration of any Financial Plan policy changes Status report on major City goals Policy. direction from Council ■ Water and sewer rate review 5/19/92 ■ Distribution of Preliminary 1992-93 Budget 6/1/92 ■ Public hearing to approve 1991-93 Financial Plan changes and 6/16/92 adopt 1992-93 Budget As reflected above, the proposed budget calendar retains our commitment to a simple and straight forward budget process for 1992-93 consistent with our Financial Plan policies. Accordingly, no significant expenditure programs nor any further reductions in 1992-93 expenditure plans beyond those already approved by the Council during the 1991-93 Financial Plan and mid-year budget review process are anticipated. However, many uncertainties still remain that may require us to further reduce expenditures at a later date, including: ■ Recovery of the California economy and how it will affect us regionally and locally. ■ State legislative actions similar to SB 2557 that may further impact our ability to fund City services. Legislative proposals currently underway include permanently eliminating all of our cigarette tax in-lieu revenues and placing a cap on the growth of motor vehicle in-lieu revenues (which is one of our top five General Fund revenue sources). SiA CM[ARY Under the City's two-year approach to financial planning and budgeting, the primary policy, program, and financial guidelines for preparing the 1992-93 Budget were established int he 1991-93 Financial Plan. Accordingly, it is anticipated that the 1992-93 Budget will be based on the 1991-93 Financial Plan, and that limited policy and program changes will be considered for 1992-93 beyond these already planned or approved by the Council. The budget calendar and review process for 1992-93 submitted for Council approval at this time reflects this approach. ATTACHMENT Preface to the 1991-93 Financial Plan 91-93FP5\ARCALRDR.YP1 ;�r PREFACE Attachment� HOW TO USE THE FINANCIAL PLAN DOCUMENT This document reflects the City's continued use of a two-year financial plan which emphasizes long- range planning and effective program management. The benefits identified when the City's first two-year plan was prepared for 1983-85 continue to be realized: ■ Reinforcement of long-range planning. ■ Concentration on developing and budgeting for significant objectives. ■ Establishment of realistic schedules for completing program objectives ■ A pro-active budget providing for orderly and structured operations. ■ Promotion of more orderly spending patterns. ■ Savings in time and resources allocated to preparing annual budgets. Appropriations continue to be made annually; however, the Financial Plan is the foundation for preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Administrative Officer. The City's Financial Plan serves four primary roles: ■ Policy Document ■ Financial Plan ■ Operations Guide ■ Communication Tool To meet these roles, the Financial Plan is organized into the following nine sections. Each of these sections is introduced by an overview which comprehensively describes its purpose, format, and content. Section A Introduction Includes the Budget Message from the City Administrative Officer, a Directory of Officials and Advisory Bodies, Organization Chart, and Award for Distinguished Budget Presentation. Section B Policies and Objectives Summarizes general budget policies and new significant program policies that guide the preparation and management of the budget. This section also includes major city-wide goals. Section C Budget Graphics and Summaries Provides simple pie charts and tables which highlight key financial relationships and summarize the overall budget document. PREFACE HOW TO USE THE FINANCIAL PLAN DOCUMENT (continued) Section D Operating Programs Presents the City's operating programs which form the City's basic organizational units, allow for the provision of essential services to citizens, and enable the City to accomplish the following tasks: ■ Establish policies and goals which define the nature and level of services to be provided. ■ Identify activities performed'in delivering program services. ■ Propose objectives for improving the delivery of service. ■ Identify and appropriate the resources required to perform activities and accomplish objectives. The City's operating programs are organized into six major functional areas which in many instances cross departmental boundaries and funding sources: ■ Public Safety ■ Leisure, Cultural, and Social Services ■ Public Utilities ■ Community Development ■ Transportation ■ General Government Section E Capital Improvement Plan Presents the City's Capital Improvement Plan (CIP) which includes all of the City's construction projects and capital purchases (other than replacement vehicles or equipment to be purchased through the Equipment Replacement Fund) which cost more than $10,000. Through the CIP, the City systematically plans, schedules, and finances capital projects to ensure cost-effectiveness and conformance with policy. Section F Debt Service Requirements Summarizes the City's debt obligations at the beginning of the Financial Plan period. Section G Changes in Fund Balance Provides combined and individual statements of revenues, expenditures, and changes in fund balance for each of the City's fourteen operating funds. Section H Financial and Statistical Tables Includes summaries which integrate the other Financial Plan sections as well as provide supplemental financial and statistical information such as detailed revenue estimates, total expenditures by function and type, interfund transactions, authorized regular positions, summary of significant operating program changes, and general demographic information about the City. Section I Budget Reference Materials Describes the major policy documents and preparation guidelines used in developing and executing the Financial Plan; and provides a Budget Glossary of terms that may be unique to local government finance or the City's Financial Plan. ii �.G •'�