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HomeMy WebLinkAbout2. Proposed Budget Development Policy SUBJECT: BUDGET DEVELOPMENT POLICY General: Wisconsin Statutes (sections 62.12 and 65.90) provide the overall framework and minimum legal requirements for consideration and publication of the annual budget for the City of Oshkosh. This policy outlines the process to be followed by City staff and the City Council in developing and presenting the Annual Operating Budget and Capital Improvement Plan 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 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. Department Heads should review operating budgets with Boards and Commissions assigned to them prior to the presentation to the Council. Boards and Commissions (e.g., Library Board, Parks Board, and Transit Board) should review the Capital Improvement projects with the applicable department head before presentation to the City Council. 2. 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 • Debt Service— Finance Department • Utility and Fuel pricing —Guidance from the Finance Department 4. Departments will provide a cover page for their department to include a Department Mission Statement, Strategic Plan Goals, Accomplishments (from the prior year), Goals (for the upcoming year), A Summary of Revenues and Expenditures (for the previous two years, the current adopted budget, current projected year, and the proposed budget), a brief description of budget variances, and key performance indicators. Departments are also encouraged to start and collect key benchmarks from comparable communities. 5. 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 both an Annual Operating Budget along with a Capital Improvement Plan. Meetings will be held with departments to review their budget requests prior to finalizing The Annual Operating Budget. 6. The Annual Operating Budget, consisting of the Manager's recommendations on department requests shall be submitted to the City Council for its consideration. Along with the executive summary, the following information will be reported to the City Council: • 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. • A list of budget enhancements, along with their potential impact on the levy (if applicable)for consideration by the City Council. • A summary of the Levy by funds for the entire Annual Operating Budget, • A five-year summary of assessed and equalized values and rates. • A summary of Sources and Uses of All Funds. • A ten-year analysis of the General Fund Balance 7. City Council deliberations on the Annual Operating Budget will include consideration of programs and services provided by departments along with the corresponding funding, appropriations, and potential capital projects. Council deliberations shall include the City Manager, Finance Director, and Department Heads as determined by the City Council. 8. The Annual Operating Budget and Capital Improvement Plan will be submitted to the City Council for adoption as provided in the City Code and Wisconsin Statutes. Prior to adoption, the required public hearing and statutory official notice must be published. In addition to the statutory notice, the City will utilize other media including social media to promote the official public hearing. The goal is to have the City Council adopt the annual operating budget and capital budgets at the first meeting in November.