Special City Council Meeting
March 3, 2023
AGENDA REPORT
TO: G. Harold Duffey FROM: Erin Roseman
Interim City Administrator Director of Finance
SUBJECT: FY 2023-25 Mayor and Council
Budget Priorities
DATE: February 21, 2023
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Receive An Informational Report To Begin Discussing Mayor And Council Priorities For The Fiscal Year (FY) 2023-2025 Budget Based On Preliminary Projected Increases Or Decreases In The Next Budget In Accordance With The Consolidated Fiscal Policy (Ordinance 13487 C.M.S.)
EXECUTIVE SUMMARY
Pursuant to the adoption of the Consolidated Fiscal Policy (“CFP”) Ordinance No. 13487 C.M.S., the City Administrator is required to brief the City Council on estimated baseline expenditures, revenue projections and provide an overview of the City's budgeting process at its biennial workshop for discussing priorities. Attachment A contains the PowerPoint presentation providing this briefing.
BACKGROUND / LEGISLATIVE HISTORY
On December 14, 2014, the City Council adopted the CFP (Ordinance No 13279 C.M.S.). The CFP was amended on May 15, 2018, by the City Council (Ordinance No. 13487 C.M.S.) as part of a regular review of the City’s financial policies.
Section 3.1 of the CFP requires the Council to hold a workshop with an initial Budget Briefing and Priorities Discussion.
2. Council Initial Budget Briefing and Priorities Discussion
Requirements: The Mayor and City Council will hold a bi-annual budget workshop soon after the commencement of the Council term. The workshop will include briefings on estimated baseline expenditures, revenue projections and an overview of the City's budgeting process. The workshop will provide the Mayor and Council with the opportunity to begin discussing priorities for the next budget year based on the Assessment of Stakeholder Needs, Concerns and Priorities
Feb 21, 2023
G. Harold Duffey, Interim City Administrator
Subject: FY 2023-25 Mayor and Council Budget Priorities Date: February 21, 2023 Page 2
Special City Council Meeting
March 3, 2023
ANALYSIS AND POLICY ALTERNATIVES
Attachment A contains the PowerPoint presentation providing this briefing. In summary the City is facing a very substantial budget shortfall in its General Purpose Fund (GPF). This shortfall is larger than any others since the Late in 1970s.
The forecasts and projections underlying the estimated shortfall will be refined in the City’s Five- Year Financial Forecast and presented to the City Council at its March 14 th Finance and
Management Committee Meeting.
Preliminary
Estimate FY 2023-24 FY 2024-25 2 – Year Total
Revenue 755,550,867 771,890,867 1,527,441,734
Expenditures 943,619,943 953.030.591 1,896,650,534
Surplus / (Deficit) (188,069,076) (181,139,724) (369,208,800
FISCAL IMPACT
There is no direct fiscal impact for the receipt of this report.
PUBLIC OUTREACH / INTEREST
There was no public outreach completed in the production of this report.
SUSTAINABLE OPPORTUNITIES
Economic: There are no economic opportunities associated with this report. However the budget has substantial effect on the local economy.
Environmental: There are no environmental opportunities associated with this report. However the budget may have substantial effect on local environmental conditions.
Race & Equity: There are no direct racial equity opportunities associated with this report. However, the budget process includes a number of steps to assess the racial equity impacts of decision making. Additional changes to this process could improve the quality and depth of equity analysis.
G. Harold Duffey, Interim City Administrator
Subject: FY 2023-25 Mayor and Council Budget Priorities Date: February 21, 2023 Page 3
Special City Council Meeting
March 3, 2023
ACTION REQUESTED OF THE CITY COUNCIL
Staff Recommends That The City Council Receive An Informational Report To Begin Discussing Mayor And Council Priorities For The Fiscal Year (FY) 2023-2025 Budget Based On Preliminary Projected Increases Or Decreases In The Next Budget In Accordance With The Consolidated Fiscal Policy (Ordinance 13487 C.M.S.)
For questions regarding this report, please contact Brad Johnson, Budget Administrator, at 510- 207-5730.
Respectfully submitted,
ERIN ROSEMAN
Director of Finance
Attachments (1):
A- Budget Briefing Presentation