HomeMy WebLinkAbout8.5 Change to Two Year BudgetOF D82
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STAFF REPORT CITY CLERK
DUBLIN CITY COUNCIL File # 1:1091❑0 -0 0❑
DATE: March 14, 2011
TO: Honorable Mayor and City Councilmembers
FROM: QR Joni Pattillo, City Manager
SUBJEC onsideration of Two -Year Budget Process
Prepared By. Amy Cunningham, Budget Manager I"
EXECUTIVE SUMMARY:
The Dublin City Council will consider a proposal to change the City's budget preparation
process from a one-year budget to a two-year budget format.
FINANCIAL IMPACT:
There is no financial impact at this time.
RECOMMENDATION:
It is recommended that the City Council discuss the issue of a two-year budget process and
provide Staff with direction.
Submitte By
udget Manager
Reviewe By
Assistant City Manager
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DESCRIPT{ON:
Since the City's incorporation in 1982, the City of Dublin has prepared a budget document
annually. The budget document includes the proposed revenues and expenditures required for
the City's operation. The annual budget takes approximately 5-6 months of staff time, as well
as the efforts of dozens of staff members, to prepare and present for adoption. Two-year
budgets have been successfully implemented in municipal agencies, including our neighboring
communities of Livermore and Pleasanton.
At the City Council's Strategic Planning workshop on January 22, 2011, the City Manager
introduced the possibility of moving from adoption of a one-year budget to adoption of a two-
year budget. At that meeting, the City Manager indicated that the matter would be brought
before the City Council for further consideration at the first Budget Study Session for the FY
2011-2012 budget preparation process.
There are variations to finro-year ("biennial") budgets including the rolling two-year budget, and
the classic two-year budget. The rolling two-year budget is a two-year spending plan comprised
of two one-year appropriations that are adjusted annually. The classic two-year budget is a
two-year spending plan in which 24 months worth of expenditures are approved simultaneously.
Staff is supportive of a rolling two-year budget.
Staff believes that there are many benefits to the implementation of a two-year budget process:
1) The two-year budget would help to more fully integrate the City's Strategic Planning
process and the City's budget process. The budget is the primary tool to allocate the
resources necessary to fund those services/programs that the City Council wishes to
accomplish, and long-range coordination of the approved Strategic Initiatives with the
budget is very important.
2) The two-year budget would provide the City Council with a look beyond the one-year
timeframe of our existing budget to future operating programs and capital
improvement projects. At the present time, the budget is prepared to accomplish
initiatives for one year, even though the expenses related to that initiative may be
multi-year. A two-year budget provides the opportunity to see those costs in greater
tota I ity.
3) The two-year budget would save staff time and effort in preparing one-year budgets.
As mentioned earlier, the current budget preparation time is between 5-6 months. A
two-year budget process would take the same amount of time to prepare, but the
second year of the process would be an update to the document - not a completely
new document. This would save significant staff time and resources that could be
redirected to achieve the strategic initiatives..
If the City Council feels that the development of a two-year budget is appropriate, the City
Manager will assign a staff team to begin work on the processes needed to create the
document. It would be a goal to have the two-year budget in place for the Fiscal Year 2012-
2013 budget. This timing would also provide alignment with the new Five Year Capital
Improvement Program.
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NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None at this time.
ATTACHMENTS: None.
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