DATE: March 16, 2022
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT: Fiscal Year 2023 Budget Process Update
RECOMMENDATION
That the Committee receives an update on the FY 2023 Budget Process.
SUMMARY
This report provides an update to the Committee on the FY 2023 Budget process. The City’s annual budget process begins in January. The budget process includes several significant steps that allows for the development and presentation of the proposed budget to the Council for consideration prior to adoption in June. Graphic 1 provides a visualization of the FY 2023 annual budget process.
BACKGROUND AND DISCUSSION
The annual budget process began in January 2022. Departments identify both operational budgetary needs, as well as emerging capital infrastructure needs as part of the City’s Capital Improvement Program (CIP). By February, departments submit budget requests for both operating and CIP needs for the upcoming fiscal year.
As part of the Operating Budget process, each department presents its operating budget requests to the City Manager during a series of meetings in early March. The City Manager reviews all department requests prior to making a recommendation to the Council for consideration. These recommendations are included in the proposed FY 2023 Operating Budget, which will be provided to the full Council and published on the City’s website by the end of April.
As part of the CIP Budget process, several CIP Screening Committee meetings are held throughout February and March, prior to the presentation of the draft CIP to the City Manager and Assistant City Manager in March. The recommended CIP Budget will be provided to the full Council and published on the City’s website in mid-April.
On May 14, 2022, a Council Budget Work Session will be held to review the proposed FY 2023 Operating Budget. A separate CIP Budget Work Session is scheduled for May 17, 2022.
Upon completion of all budget work sessions, the Proposed FY 2023 Operating and CIP Budgets are scheduled for a Public Hearing and Adoption on June 7, 2022. Should the Public Hearing result in necessary changes to the Proposed FY 2023 Operating and CIP Budgets, the item will be continued to June 14, 2022, for final adoption.
Graphic 1: FY 2023 Annual Budget Timeline
ECONOMIC IMPACT
There is no economic impact associated with this report as it is informational only.
STRATEGIC ROADMAP
This agenda item is a routine operational item and is not specifically relate to a project currently identified in the Strategic Roadmap.
FISCAL IMPACT
There is no fiscal impact associated with this report as it is informational only.
PUBLIC CONTACT
The agenda for this item was posted in compliance with the California Brown Act.
NEXT STEPS
The proposed FY 2023 Operating Budget will be presented to Council and published on the City’s website by the end of April. A Saturday budget work session will be held on May 14, 2022, followed by a Public Hearing and Adoption of the FY 2022 Operating and CIP Budgets on June 7 or 14, 2022.
Prepared by: Nicole Gonzales, Deputy Director of Finance Recommended by: Dustin Claussen, Director of Finance
Approved by:
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Kelly McAdoo, City Manager