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HomeMy WebLinkAbout4. Proposed Budget Development Policy SUBJECT: BUDGET DEVELOPMENT POLICY General: The process for the publication and legislative consideration of the annual budget for the City of Oshkosh is stated in Wisconsin Statutes (sections 62.12 and 65.90). Those legislative pronouncements provide the overall framework and minimum legal requirements for the City budget process. This policy outlines the process to be followed by City staff and the City Council in developing and presenting the annual operating and capital budgets for all City operations, including utilities for review and adoption. Recommendation: It is recommended by the Government Financial Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB) that local municipalities strive to include five (5) key characteristics in the budget process: 1. Incorporates a long term perspective 2. Establishes linkages to broad organizational goals 3. Focuses budget decisions on results and outcomes 4. Involves and promotes effective communication with the public 5. Provides incentives to government management and employees Procedures: 1. The annual budget for the City developed for presentation to the City Council will include all operations of the City, including utilities, and will include both the operating budget for the ensuing fiscal year and a capital budget based upon a five-year capital improvement plan. Councils, committees, or commissions(e.g., Library Board, Parks Board, and Transit Board) should review such budgets with the applicable department head before presentation to the City Council, and preferably before the annual budget is finalized. 2. Before commencement of the annual budget process, the Finance Director, in consultation with the City Manager, will develop recommended budget parameters and the budget calendar. Budget parameters will include allowable increases in operating budgets, projected wage increases, targets for borrowing in accordance with the City's debt management policy, anticipated changes in revenue sources or tax base growth, and other factors. 3. Certain elements of budgets that are common across departments will be calculated and/or monitored on a centralized basis to ensure comparability and budgetary control. These areas, including the authority responsible for oversight, include: ■ Salaries and benefits— Finance Department 4. The Finance Director is responsible for coordination and initial review of department budget submissions. Following initial review, the Finance Director will work with the City Manager, to develop a budget. Meetings will be held with departments to review their budget requests prior to finalizing the budget. 5. The budget, consisting of the Manager's recommendations on department requests shall be submitted to the City Council for its consideration. Along with the executive budget submission, the following information will be reported to the City Council: • All budget requests by departments, whether recommended for funding or not in the budget • A report from the City Manager as to whether the budget falls within the initial parameters established by the City Council and areas in which changes/adjustments could be considered 6. City Council deliberations on the budget will include consideration of the budget, and department head consultation as determined by the Council. The annual operating and capital budgets will be submitted to the City Council for adoption as provided in the City Code and Wisconsin Statutes. The goal is to have the City Council adopt the annual operating budget and capital budgets at the first meeting in November.