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HomeMy WebLinkAbout07/21/2009 00 Memorandum RE: Proposed Yakima City Council Budget Priorities Model 1 C j �' OFFICE OF THE CITY MANAGER 129 North Second Street . ` CITY HALL, Yakima, Washington 98901 °a,' � Phone (509) 575 -6040 MEMORANDUM July 17, 2009 • TO: The Honorable Mayor and Members of the City Council FROM: Dick Zais, City Manager DeBord, Finance Directorr� SUBJECT: Proposed Yakima City Council Budget Priorities Model On May 19, 2009, the City Council held a special study session regarding Yakima's budget process and the Priorities of Government Model. At the end of this meeting, a motion was made and approved unanimously by the Council to forward this issue to the Council Budget Committee for study and that the issue be brought back to the full council with recommendations from the Committee. (See enclosed minutes of this meeting). Since that time, the Council Budget Committee and City Management have been working through this issue, and at the same time, initiating the 2010 budget process. In addition, within the past two months, the City has also been confronted with a substantial reduction in City sales tax revenues for 2009 and has also incurred significantly greater than expected expenditure increases for municipal jail costs and other mandates. A combination of these events has placed a greater fiscal stress on the 2009 -2010 General Government budgets. At this time, the City is forecasting a deficit of approximately $4 million in the 2010 preliminary General Government budget. This past Thursday, the Council Budget Committee reviewed Yakima's proposed "Budget Priorities Model" pertaining to the 2009 year end data and preliminary 2010 revenue and expenditure projections. The Committee completed its assignment and is now forwarding recommendations to the full Council for your review and consideration. Accordingly, a Council Study Session regarding the proposed City Council Budget Priorities Model and the Budget has been scheduled for next Tuesday, July 21, 2009 from 8 — 9:45 a.m. in the Council Chambers. Yakima ri ag II IIC 1994 The Committee has taken the following actions for presentation to the Council: 1. Voted unanimously to accept the six General Government Budget Priorities as presented (Public Health and Safety, Resource Management, Economic Development, Quality of Life, Customer Service / Communication and Strategic Partnerships) and assignment of the corresponding City Budget Service Units to each Budget Priority; and requested this recommendation be sent to the full Council for consideration. (A large chart depicting the Budget Priorities and the underlying Service Units is attached.) 2. Requested that staffs full budget presentation — including City Management's recommendation for the allocation of City resources to each of the six Budget Priorities — be forwarded to the full Council for consideration. A copy of materials reviewed yesterday by the Council Budget Committee is attached for your information and review in advance of next week's Study Session. City Management respectfully requests direction from the full Council with respect to the adoption of the Priorities of Government Model for the City of Yakima and the allocation of City resources for the 2010 Preliminary General Government Budget. This is necessary now for Management to proceed with the final development and preparation of the 2010 General Government Budget. Inasmuch as the 2010 budget is anticipated to incorporate significant cost reductions in order to stay balanced within available resources, it is our objective to complete and submit to the Council the 2010 Preliminary General Government Budget by mid September in order to facilitate the Council's policy deliberations and decisions well in advance of the required adoption of the budget in December 2009.