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Home My WebLink AboutCity Council Agenda Item No 08TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: PAT KILROY INTERIM CITY MANAGER DATE: AP RI L 24, 2012 SUBJECT: CITY COUNCIL BUDGET GUIDELINES FOR FISCAL YEAR 2012-13 1:rM • • • The Cit Council annuall g ives direction re the preparation of the next y ear's bud This report lists the Recommended Bud Guidelines for Fiscal Year 2012-13, based on the current y ear g uidelines. As recommended, these g uidelines are the standard b which the operatin bud will be developed. These g uidelines are structured to reflect Cit Council's g oals and ob and provide the framework in which the operatin bud for all the Cit entities in Fiscal Year 2012-13 will be prepared. Also included in this report are the proposed bud preparation process and the bud calendar for the Fiscal Year 2012-13 bud process. Some ke dates to remember are as follows: Thursda Ma 31: Public bud stud session with the Cit Council for the Fiscal Year 2012-13 proposed operatin bud for the Cit Special Revenue Funds and the Successor A for the Redevelopment A and the Cit Five-Year Capital Improvement Pro (CIP). Tuesda June 5th: Preliminar CIP review with the Plannin Commission for General Plan compliance. Tuesda June 26th: Presentation of the Fiscal Year 2012-13 proposed operatin bud and CIP to the Cit Council for adoption. Fiscal Impact There is no fiscal impact directl associated with this item. F,A.Tcl: 4 z I - - IT.Al M 4M U0 1, Pa 1 of 8 Cit Council Bud Guidelines for Fiscal Year 2012-13 April 24, 2012 Pa 2 Recommendation It is recommended that the Cit Council: Approve the Recommended Bud Guidelines for Fiscal Year 2012-13 or provide recommendations to Cit staff for the Bud Guidelines. Attachment 1: Cit Council Bud Guidelines for Fiscal Year 2012-13 Attachment 2: Bud preparation Process for Fiscal Year 2012-13 Attachment 3: Bud Calendar for Fiscal Year 2012-13 Pa 2 of 8 olo� CITY OF ^, � L SII1O R%,E LAKE DREAM EXTREME Cit Council Bud Guidelines for Fiscal Year 2012=13 The Cit Council annuall g ives direction re the preparation of the next y ear's bud This report lists the Recommended Bud Guidelines for Fiscal Year 2012-13. As recommended, these g uidelines are the standard b which the operatin bud will be developed. These g uidelines are structured to reflect Cit Council's g oals and ob and provide the framework in which the operatin bud for all the Cit entities in Fiscal Year 2012-13 will be prepared. Fiscal Year 2012-13 Recommended Bud Guidelines Guideline: Bud proposals should be reflective of the Cit Council's Goals and Ob The bud should exhibit priorities established b the Cit Council in its Lon Financial Plannin Guideline: The policies established with the adoption of the annual bud will be communicated to the communit throu the Cit Website and q uarterl y bud reports. Guideline: Proposed General Fund departmental bud for Fiscal Year 2012-13 will be set at a spendin level that will be free from reliance upon non-recurrin revenue sources or deficit spendin The Cit will not commit to spendin more than a conservativel prepared estimate of recurrin revenues. Departments must submit proposed bud within these spendin limitations. Guideline: Bud will be prepared which adhere to a polic that emphasizes: • A fiscall balanced bud • An operationall balanced bud • Maintenance of an ade reserve for emer • Development of locall controlled, new lon recurrin revenue streams Attachment I Pa 3 of 8 Cit Council Bud Guidelines for Fiscal Year 2012=13 (continued) Guideline: The Cit will maintain a minimum of a 15% (of adopted recurrin appropriations) Catastrophic General Fund Reserve Balance throu June 30, 2013 for future unexpected contin (earth floods, etc.). This will ensure a General Fund reserve of approximatel 3.6 million. Financial and service stabilit will continue to be the primar ob in developin the annual operatin bud for Fiscal Year 2012- 13. (Current Catastrophic Reserve is at 15%). Guideline: While the bud detail will be prepared for Fiscal Year 2012- 13, departmental bud will include an anal of the lon ran impacts (up to five y ears) of the Fiscal Year 2012-13 bud on continued service levels. Guideline: The Cit Five Year Capital Improvement Pro (CIP) will be prepared on the same schedule as the review and adoption process of the Cit Operatin Bud This will provide coordination of the two activities and facilitate pro trackin The portion of the Five Year CI which relates to Fiscal Year 2012-13 will be included in the operatin bud Guideline: The Cit bud will contain a pro commitment to activel pursue improved inter relations that include seekin financial assistance such as g rants, relief from unfunded mandates, and assumption of a leadership role in re and statewide or Guideline: Reflect a commitment to the citizens and the business communit b makin it eas to access the Adopted Operatin Bud Comprehensive annual Financial Report, and Capital Improvement Bud documents alon with correspondin q uarterl y reports throu the Cit of Lake Elsinore's website. Guideline: Citizen participation is encoura b providin an opportunit for public review and comment of the proposed bud 2 Attachment 1 Pa 4 of 8 Cit Council Mud Guidelines for Fiscal Year 2012=13 (continued) Cit Council's Top Priorities: 1. Public safet (law enforcement and fire protection services) is the Cit Council's number one priorit for the residents and businesses of the Cit of Lake Elsinore. 2. To achieve a balanced bud while minimizin the use of Unallocated Revenue I Maintainin the Cit 15% Fund Balance Reserve of adopted recurrin appropriations. This is critical to the on stabilit of the Cit finances. K Attachment I Pa 5 of 8 A 0 A L FISCAL YEAR 2012-13 The Administrative Services Department, Finance Division, is responsible for the preparation of the Cit annual bud The Finance Division prepares an annual bud calendar and provides detail instructions, worksheets and assistance to each department with respect to the preparation of their particular department bud The Cit uses a combined department/ division and line item bud format. This is desi to provide for a comprehensive mana control and fiscal plannin s The purpose of usin this format is to achieve g oals and objectives at the operational levels that are consistent with the Cit Council's Goals and Objectives. The bud process is g enerall y an incremental one which starts b buildin on the current y ear's bud Revenue estimates, job position and department operatin re for chan in appropriations are made at the department/ division level and are initiall complied and reviewed b the Finance Division. An initial review of the Preliminar Bud is reviewed b the Cit Mana and all Department Directors and Division Mana This is then presented to the Bud Committee for review. Next in the process, the Cit Mana and the Director of Administrative Services review each Department separatel with the Director and Mana of the Department. After all Departments have been reviewed and final ad are made, a final Proposed Bud Document is prepared and reviewed and approved b the Cit Mana The Proposed Bud is then presented to the Cit Council and the public in a stud session. Based on the recommendations and revisions made b the Cit Council at the stud session, the Final Proposed Bud is presented for adoption in June, with the Adopted Bud Book prepared and disseminated in late Au The Cit Council Bud Guidelines and the Bud Calendar for Fiscal Year 2012-13 are included with this summar E Attachment 2 Pa 6 of 8 � will *0 All APRIL 2012 • April 02, 2012: FY 2012-2013 CI pro re to be distributed. • April 17, 2012: Present Proposed FY 2012-2013 Bud Calendar to Interim Cit Mana and Department Directors. • April 18, 2012: General Fund estimated revenue spreadsheets available. Preliminar revenue estimate g uidelines g iven. • April 18, 2012: Special Revenue Fund estimated revenue spreadsheets available. • April 23, 2012: FY 2012-2013 Salaries & Benefits, department operatin bud re b departments and performance measure forms to be distributed. • April 24, 2012: FY 2012-2013 Bud Guidelines presented at Cit Council meetin for approval. • April 27, 2012: FY 2012-2013 CIP pro re due to Finance. • April 30, 2012: FY 2012-2013 Revenue estimates b departments due to Finance. MAY 2012 • Ma 7, 2012: FY 2012-2013 Salaries & Benefits, department operatin bud re b departments and performance measures due to Finance. • Ma 18, 2012: Department Directors and Mana Meetin and Review of Preliminar Bud 8:OOAM to 12:OOPM. • Ma 18, 2012: Bud Committee Meetin 1 Attachment 3 Pa 7 of 8 Ma 18, 2012: FY 2012-2013 Proposed CIP projects reviewed and approved b Director of Public Works. • Ma 21st to 24th, 2012: Department review of FY 2012-2013 bud and CIP with Interim Cit Mana Department Directors, Mana and Director of Administrative Services. • Ma 22, 2012: 3rd Quarter FY 2011-12 Bud Review. • Ma 31, 2012: Stud session with the Cit Council for the Cit CIP, Special Revenue Funds and the Successor A of the RDA. JUNE 2012 • June 5, 2012: Preliminar CIP review with Plannin Commission for General Plan compliance. • June 26, 2012: Present FY 2012-2013 Proposed Operatin Bud and Capital Improvement Plan projects to Cit Council for adoption. 2 Attachment 3 Pa 8 of 8