TO: Mayor Bien-Willner and Town Council Members
FROM: Brian Dalke, Interim Town Manager
Douglas Allen, CPA
DATE: May 23, 2019
DEPARTMENT: Finance
Staff Contact Douglas Allen
End
AGENDA TITLE:
Title
Adoption of Resolution Number 2019-05 Approving the FY2019/20 Tentative Budget
Body
RECOMMENDATION:
Recommendation
Adopt Resolution Number 2019-05 approving the FY2019/20 Tentative Budget that sets the maximum appropriation for the fiscal year at $68,331,196.
Background
SUMMARY STATEMENT:
One of the most important duties of the Town Council is to adopt an annual budget for the Town. The budget process provides the Council with the opportunity to match the needs of the Town and available resources with the intent of gaining the maximum return on each dollar.
The Town undertakes a hybrid budget process, incorporating elements of zero-based, priority-setting, and program budgeting. The budget process starts with Council goals. Departments submit their budget requests for their programs, incorporating specific needs. These requests are presented and prioritized.
A balanced “Recommended” budget is presented to Council for review and consideration. All departments will meet with Council through a series of public meetings where adjustments to the recommended budget can be made.
Council then adopts a “Tentative” budget that sets the maximum spending for the fiscal year, which is posted for public inspection, and a public hearing is then held for public comment.
After public comments, the Council can still modify the tentative budget categorically, but cannot increase the maximum spending amounts. Council then adopts the final budget referred to as the “Adopted” budget.
This meeting is to adopt a Tentative Budget that is the result of all departments, management and Town Council’s collaborative efforts to set and communicate the Town’s financial plan, policies and operational guide for the upcoming fiscal year 2019/20. The tentative budget includes funding for all department’s operating budgets, payment of debt obligations, contingencies and the capital improvement program while financial forecasts continue to show the Town maintaining a financially sustainable structure.
Included in the Tentative Budget is budget authority available should Council direct staff to initiate financial strategies to fully fund the PSPRS unfunded liability in 2020. These strategies comply with the annual expenditure limitation and not impact Town operations or capital improvement program. Further Council action is required before any of the financial strategies are initiated and any unnecessary budget authority will be reduced.
ATTACHMENT(S):
01 Resolution 2019-05 Adopting the Tentative Budget for FY2019/20
02 Schedule of Changes from the Recommended Budget to the Tentative Budget
03 PV2020 Tentative Budget
04 Slides - Tentative Budget 2020 Overview