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HomeMy WebLinkAbout5L Budget and CIP Schedule Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 22, 2016 AGENDA #: 5L PREPARED BY: DON URAM, FINANCE DIRECTOR PRESENTED BY: DON URAM AGENDA ITEM: CONSIDER APPROVAL OF A SCHEDULE ESTABLISHING KEY DATES AND TOPICS RELATED TO THE PREPARATION OF THE 2017 BUDGET AND 2017- 2021 CAPITAL IMPROVEMENT PROGRAM(CIP) DISCUSSION: Introduction The purpose of this agenda item is to propose a process and timeline allowing staff and council adequate time to discuss all issues associated with preparing the 2017 Budgets and Capital Improvement Program (CIP). History The proposed process is similar to what has been followed in prior years. Current Circumstances The attached table shows the proposed dates and topics related to the preparation of the 2017 budget and 2017-2021 CIP. You will notice that the general fund budget portion of the schedule has been moved up compared to last year by about 6 weeks. Preparing a preliminary general fund budget earlier in the process gives both the staff and council a better understanding of the tax levy necessary to fund opera- tions. This information will be used by staff as they prepare the CIP. Overall the goal is to minimize the tax impacts while maintaining levels of service and contin- ued investment in the city’s infrastructure. There are a total of 6 workshops scheduled to discuss the 2017 budgets and CIP. The first workshop is scheduled for April 11. At that time, staff will be presenting some preliminary budget information and the long range financial forecast. Staff will also be asking the council to establish a 2017 preliminary maximum levy target. Having some direction on what level of property tax increase is acceptable to the council will save time and effort as staff begins the budget process. In the event that the proposed maximum is insufficient to continue services at present levels, the staff can provide the city council with a list of impacts for consideration. There is an additional workshop scheduled for April 25 to discuss a Personnel Plan which is being developed. The Personnel Plan will be folded into the CIP as its ninth plan. This is a key element of the city’s plans going forward since the addition of capital infrastructure or changes in service levels desired, dictate the level staff and other resources necessary to deliver services to our growing community. 2 ISSUES: Conclusion The Council should consider approving the proposed schedule establishing key dates and topics related to the preparation of the 2017 Budget and CIP. The table will be posted on the city website as public information for transparency sake There are numerous reasons the staff requests council approval of this schedule: 1. Does the schedule reflect the amount of time that councilors believe is nec- essary to become conversant with the proposed financial planning docu- ments? 2. Will councilors and staff be able to commit themselves to being available at the dates and times proposed? 3. Is there sufficient opportunity for the public to become familiar with the doc- uments contemplated for approval and meetings which allow them to ex- press their opinions for city council consideration? 4. A staff conducted town meeting is scheduled for October 12, 2016 in ac- cordance with council direction during the previous budget cycle. Was last year’s town meeting formatted properly in the city council’s opinion? ALTERNATIVES: 1. A motion and second as part of the consent agenda to accept the schedule, approve the process and timeline as proposed or with amendments. 2. Provide staff direction regarding desired changes which may be more compre- hensive in nature. RECOMMENDED MOTION: Alternative 1. 4646 Dakota Street SE Prior Lake, MN 55372 2017 Preliminary Budget & 2017-2021 Capital Improvement Program Schedule NOTE: All Highlighted Meetings Open to the Public March 28 Dept. Heads submit large budget item requests to Finance April 11 Council Workshop – 2017 Budget and Long Range Financial Forecast (establish 2017 total levy target) April 18 Budget and CIP instructions provided to Dept. Heads April 25 Council Workshop – Personnel Plan May 6 Dept. Heads submit budget requests to Finance May 7 – 20 City Manager, Finance and Staff budget review May 20 Deadline for Staff to complete CIP updates to the following: 1. Transportation Plan 2. Water Operating Plan 3. Sewer Operating Plan 4. Water Quality Operating Plan 5. Equipment Replacement Plan 6. Park Equipment Replacement Plan 7. Facilities Management Plan 8. Technology Plan 9. Personnel Plan May 23 – June 3 City Manager, Finance and Staff CIP review June 13 Council Workshop – 2017 Budget Update and Review Draft CIP Part 1 June 27 Council Workshop – Review Draft CIP Part 2 July 11 Council Workshop – Review Draft CIP Part 3 July 18 Planning Commission reviews Draft Transportation Plan August 8 Council Meeting – Public Hearing on CIP/Street Reconstruction Plan August 22 Council Workshop – Preliminary 2017/Tax Levy Discussion August 22 Council Meeting – Adopt CIP September 26 Council Meeting – Adopt Preliminary Tax Levy and announce public budget hearing date October 12 Town Hall Meeting (tentative) November 14 Council Workshop – Yearend Budget Preview and Final 2017 Budget/Tax Levy Discussion November 28 Council Meeting – Public Budget Hearing December 12 Council Meeting – Adopt 2017 Budget and Tax Levy