| Budget Trends, Issues and
Opportunities
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Challenges in development of the FY 2004 and FY 2004 2YB
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| Significant financial and organizational issues
challenged the City organization during development of the two year budget.
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| Revenue growth slowdown. Projections for the tax
supported funds indicated a significant slow down in revenue growth compared to
the recent past. Projected revenues compared to projected costs pointed to the
need to institute cost containment in services and very limited capital
projects in order to balance the budget.
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| Boise had experienced sluggish revenue growth in the
previous 2YB period (FY 2002 and FY 2003 2YB). As a result, General Fund
departments had been directed by the Mayor and City Council to �holdback�
$850,000 in spending to help balance the FY 2003 budget.
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| The City�s financial situation was exacerbated late in FY
2003 with a settlement of a property tax valuation law suit by Micron (the
major employer within the City) that resulted in a loss of $2.3 million in
current revenues late in FY 2003.
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| The FY 2004 and FY 2005 2YB projections indicated that
achieving �structural balance� in the tax funds must be among the strategic
goals. Consequently, the Mayor and City Council directed that cost containment
and other �budget balancing alternatives� be key efforts within the 2YB
process. �Decision points� of major budget balancing alternatives were the
focus of the strategic planning portion of the budget process.
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| Other difficulties. During the pre-budget
planning effort (February 2003), the incumbent Mayor resigned and key Mayor�s
Office staff were terminated. An investigation of Mayor�s Office spending
practices and a forensic audit were conducted simultaneously with budget
development.
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| Two new Council Members were appointed in February and
March 2003 and Council Member Carolyn Terteling-Payne was appointed interim
Mayor. Mayor Terteling-Payne led the City through the 2YB process. The �new�
Council completed the budget development process and achieved a �structurally
balanced� budget through the six year financial planning window, while
directing changes to improve financial controls.
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City Council Budget Planning Workshops.
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| To provide a strategic context for budget development,
City Council budget planning workshops were held to review trends, issues and
opportunities for the 2YB. Presentations at the meetings were typically media
and graphic based. The following links provide access to key Powerpoint
presentations considered at the workshop sessions. Among the workshops were
presentations by the departments related to issues and needs in their areas of
responsibility within the Six Year Capital Improvement Plan.
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| Six
Year Financial Plan (February 11, March 4 and 11, 2003) |
| Achieving
Long-Term Structural Balance (April 1, 15, 22, 29 and May 6, 2003) |
| Six
Year Capital Improvement Plan (May 13, 2003) |
| Mayor�s
Recommended Budget (June 16, 2003) |
| Annexation
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City Council Actions related to Trends and Issues.
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The Mayor submitted recommendations related to identified
issues, �budget balancing alternatives� (BBAs), decision points, and
initiatives in her Mayor�s Budget Transmittal Letter.
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The City Council considered the Mayor�s recommendations
and department reports during the June 16 and 17 and 23 and 24 budget
workshops. |
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The City Council adopted the Preliminary Approved Budget
on June 24, 2003 � which addressed identified issues within the 2YB and
provided policy and concept direction within the six year financial planning
window. |
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First Public Hearing on the Preliminary Approved Budget
was held on August 12, 2003, to hear citizen comments on the budget plan. |
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Second Public Hearing on the Preliminary Approved Budget
was held on September 12, 2003, in order to consider additional property tax
valuation and taxes. |
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Final adoption of the 2YB was made by the City Council by
adopting and publishing the Annual Appropriation Ordinance on September 26,
2003. |
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