10.3. SR 10-07-2013 - Laserfiche WebLink

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City of Elk Request for Action River To Item Number Mayor and City Council 10.3 Agenda Section Meeting Date Prepared by Worksession October 7, 2013 Tim Simon, Finance Director Item Description Reviewed by Biennial Budget Discussion Cal Portner, City Administrator Reviewed by Action Requested Discuss biennial budget and process. Background/Discussion The city has a long-standing tradition of multi-year financial planning which has contributed to Standard and Poor's "strong" rating on the city's financial management practices,their highest level. Multi-year financial planning could correlate into multi-year budgeting. Many cities adopt a multi-year or biennial budget,including Brooklyn Park, Shoreview, Eden Prairie, and Plymouth. City Administrator, Cal Portner has worked in Brooklyn Park and Plymouth and will be able to share his insights. The Government Finance Officers Association (GFOA) describes a multi-year budget as a document that details and plans appropriations and revenues for two or more years. Once a two-year budget is approved,the off year has minor adjustments to reflect changes in fiscal condition, revenue, and expenditure adjustments. Since state law requires annual approval of the tax levy and budget every year, we would still do that process in addition to any budget adjustments. City staff continually works on multi-year plans for the budget and Capital Improvement Plan (CIP), so other than first year implementation and updating spreadsheets it could go rather smoothly. Brooklyn Park and Eden Prairie were asked for some of the pros and cons of a multi-year budget and below are the summarized responses: Pros. • Staff time savings as the GFOA budget award document is compiled every other year. • Helps with long-term planning,looking out two years instead of one. • Brings multi-year plans into goals and the budget document. • Can concentrate on strategic planning and the CIP in the off year. • Can move expenses between years to accomplish goals or moderate cost increases in a particular year. • Council can discuss timing on personnel and service levels over multiple years. • Strongly supported by bond rating companies. Cons. • Develops reasonable assumptions for the forecast years (conservative forecasts). • Continued education during the first years of implementation. P a w E A E U s r NaA f RE]