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Two Year Budget Development (2YB) Process
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The Two Year Budget (2YB) process is designed to provide a multi-year,
strategic planning focus for development of the budget plan. The City�s Six
Year Financial Plan is a strategic plan component and provides context to
integrate the City�s operational planning and capital facilities planning
efforts. The budget process is designed to provide a robust information base
for the Mayor and City Council and for the community that identifies resources,
service and facilities objectives, issues and choices and that facilitates
decision-making to achieve a balanced budget.
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Phase I: Goal Setting and Long term financial planning
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As a first step in the budget development, strategies and plans to provide
common vision and shared goals are discussed, reviewed and refined:
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Strategic Plan Update. Council workshop discussion. March
2003 update and acknowledgement of the City�s mission statement, community
values and strategic initiatives document. |
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Six-Year Financial Plan. Background workshops and
establishment of financial/budgetary policy and guidelines:
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Environmental Scan. February 2003 analysis of Boise and
regional economic, demographic, and other statistical data. Updates were
provided during the March through June 2003 budget development process. |
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Comprehensive financial policy review. March through May
2003 City Council review and approval of changes. |
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Revenue Manual. February through June 2003 revenue of key
revenue sources � projections and assumptions. City Council adopts projections
by motion action. |
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Six-Year Financial Projections. Projection of revenues,
expenditures and financial position. February through June 2003 City Council
review of projections and decision units. Tool for sensitivity analysis and
summary review by City Council of effect of budget decisions. |
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Budgetary Guidelines. February through June 2003 review
and approval by City Council. |
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Debt Strategy. Key decision units related to debt
reviewed in March and June 2003 by City Council. |
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| Detail information about each of these processes and
products are included in the Six-Year Financial Plan.
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| Phase II: Capital Improvement Planning
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| Departments prepare prioritized Six-Year CIP project
requests coordinated with the policies and initiatives in the updated Strategic
Plan and in departmental services and facilities master plans. The Mayor and
the Executive Management Team prepared recommended citywide funding priorities.
The City Council approved priority lists for Capital Improvement Program for
consideration in the 2YB budget in May 2003. Unfunded capital priorities were
adopted by motion action by City Council for funding at the time additional
unallocated resources become available.
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| Phase III: Department Operating Budget Requests
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| City departments and agencies prepare requests for
budgets: to maintain current base operations (MCO) and for service enhancements
addressing strategic initiatives. Department budgets were prepared consistent
with the budget development guidelines. The 2YB budget guidelines included
�Budget Balancing Alternatives� and Decision Units to identify key choices and
issues for City Council action within the budget.
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| Phase IV: Mayor�s Recommended Budget
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| The Mayor transmits recommendations for the two year
budget, including: a) strategic choices, b) the �base budget� (the cost to
continue current services � MCO), c) the recommended �Budget Balancing
Alternatives�, d) the priority capital projects, and e) recommended unfunded
priorities. The Mayor�s recommendations are described in his Transmittal
Letter.
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| Phase V: City Council Adoption of the Preliminary Approved
Budget
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| The Mayor transmits recommendations for the two year
budget, including: a) strategic choices, b) the �base budget� (the cost to
continue current services � MCO), c) the recommended �Budget Balancing
Alternatives�, d) the priority capital projects, and e) recommended unfunded
priorities. The Mayor�s recommendations are described in his Transmittal
Letter.
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| Phase VI: Public Hearing and Final Adoption
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| A �Public Hearing Document�, including summaries of all
information in the two-year �Preliminary Approved Budget� is published and
distributed to the public. On August 12, 2003, the City Council held the public
hearing for the first year of the two-year budget. On September 12, 2003 a
second public hearing was held to revise property tax revenue amounts included
in the 2YB. The budget was adopted by ordinance on September 23rd, 2003. The
budget was published on September 26th, 2003. The second year of the 2YB will
be formally adopted in Summer 2004.
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| Implementation of the Adopted Budget - Interim Budget Changes
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| An interim budget change process is provided to allow for
budget changes necessitated during the two year budget period. The Budget
Office and department and agencies prepare proposed budget changes, which are
reviewed by the Mayor�s Budget Team. All MBT recommended actions are approved
by the Mayor for transmittal to the City Council. The City Council has final
approval authority, through motions, resolution or ordinances, for all
recommendations by the MBT.
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| Departments have authority to move money within their
budgets if they do not exceed their net budget total during the current year
and if they do not increase their net costs in future years. All changes in
human resource full time equivalencies require City Council approval.
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| The second year of the 2YB is formally adopted through a
mid-biennium budget update process. Departments are not required to resubmit
budget information and the update is primarily a goodness check and opportunity
for fine-tuning. Idaho State Code does not recognize two year budgets and
requires a noticed public hearing and formal adoption of the second year of the
2YB.
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