Fiscal Years 2004-2005
 
Budget Trends, Issues and Opportunities
 

Challenges in development of the FY 2004 and FY 2004 2YB
Significant financial and organizational issues challenged the City organization during development of the two year budget.
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.
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.
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.
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.
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.
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.

City Council Budget Planning Workshops.

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.
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
 

City Council Actions related to Trends and Issues.

The Mayor submitted recommendations related to identified issues, �budget balancing alternatives� (BBAs), decision points, and initiatives in her Mayor�s Budget Transmittal Letter.
The City Council considered the Mayor�s recommendations and department reports during the June 16 and 17 and 23 and 24 budget workshops.
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.
First Public Hearing on the Preliminary Approved Budget was held on August 12, 2003, to hear citizen comments on the budget plan.
Second Public Hearing on the Preliminary Approved Budget was held on September 12, 2003, in order to consider additional property tax valuation and taxes.
Final adoption of the 2YB was made by the City Council by adopting and publishing the Annual Appropriation Ordinance on September 26, 2003.