HomeMy WebLinkAbout2007/04/19 Item 2
CITY COUNCIL
AGENDA STATEMENT
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:s ~ CllY OF
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4/19/2007, Item 2.
ITEM TITLE:
RESOLUTION DIRECTING STAFF TO BRING
FORWARD A ONE-YEAR BUDGET FOR COUNCIL
CONSIDERATION BEGINNING FISCAL YEAR 2007-
2008
DIRECTOR OF BUDGET AND ANALYSIS W
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INTERIM CITY MANAGER (II
SUBMITTED BY:
REVIEWED BY:
4/5THS VOTE: YES 0 NO lBl
BACKGROUND
Beginning with fiscal years 2001-2002 and 2002-2003, budget staff has prepared a two-
year budget for Council consideration, A biennial budget has served the City well over
this time, However, there are several factors which make long term revenue and
expenditure projections difficult at this time, Therefore, it is recommended that the
practice of preparing a two-year budget be suspended and that a one-year budget be
prepared beginning with fiscal year 2007-2008,
RECOMMENDATION
That the City Council adopt the resolution directing staff to brin'g forward a one-year
budget for Council consideration beginning with fiscal year 2007-2008,
BOARDS/COMMISSION RECOMMENDATION: N/A
DISCUSSION
With resolution 2000-463 Council directed staff to bring forward a two-year budget for
Council consideration for the two-year period beginning in fiscal year 2001-2002,
Council has adopted two-year budgets since that time; the last biennial budget was
adopted for fiscal years 2005-2006 and 2006-2007, A key benefit of a biennial budget
has been the timesavings for Council and staff that can be redirected towards other
priorities; the second year of the biennial budget is considerably less time consuming
to prepare for adoption/appropriation,
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4/19/2007, Item '2
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Though the biennial budget has served the City well over the last few years, staff is
recommending a transitioning back to a one-year budget beginning with fiscal year
2007-2008 based on the following:
. Independent Financial Review - Adopting a one-year budget will allow the
City greater flexibility to incorporate recommendations from the report into
future budgets.
. Implementation of a Rightsizing Strategy - As demonstrated in the five-year
projections, there may be a need to make further budget reductions in future
years in order to have expenditures that are sustainable by projected
revenues on a long-term basis. In order to avoid major service impacts to
the community and/or employee layoffs, staff is recommending a phased in
approach. This will allow for a better assessment of economic indicators
and avoid unnecessary service reductions.
. Revenue Projections - As we have seen in recent years, rapid changes in
development activity and other economic fluctuations necessitate a more
frequent examination of funding priorities relative to revenue projections.
. Large Scale Projects - There are a number of significant projects, such as
the University, Bayfront, and Eastern Urban Center, which necessitate a
more frequent examination of funding priorities.
Though there are many benefits to a two-year budget process, this process generally
assumes that there will not be major changes in the programs and activities provided
by a local government and that expenditures and revenues are predicable within this
timeframe. Given the factors mentioned above and the interim status of the City
Manager, it is recommended that the City transition to a one-year budget beginning
with fiscal year 2007-2008.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for
compliance with the California Environmental Quality Act (CEQA) and has determined
that there is no possibility that the activity in question may have a significant effect on
the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA
Guidelines the activity is not subject to CEQA. Thus, no environmental review is
necessary.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it
is not site specific and consequently the 500 foot rule found in California Code of
Regulations section 18704.2(a)(1) is not applicable to this decision.
FISCAL IMPACT
There is no fiscal impact resulting from Council approving this resolution.
Prepared by. Angelica Aguilar, Assistant Director of Budget and Analysis
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RESOLUTION NO. 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA DIRECTING STAFF TO BRING
FORWARD A ONE-YEAR BUDGET FOR COUNCIL
CONSIDERATION BEGINNING FISCAL YEAR 2007-
2008
WHEREAS, the City Council has adopted two-year budgets beginning with the
two-year period beginning July 200 I; and
WHEREAS, a one-year budget will give the City greater flexibility to address
upcoming issues and make necessary adjustments based on updated revenue and
expenditure projections.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby direct staff to bring forward a one-year budget for Council
consideration.
Presented by
Approved as to form by
~~~
Ann Moore .
City Attorney
Edward Van Eenoo
Director of Budget and Analysis
J :\Attomey\RESO\FINANCE\One- Y ear budget reso _ 04-19-07.doc
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