HomeMy WebLinkAbout07-10-2012-Special crTxoF Special City Council Meeting
July 10, 2012 - 2:00 PM
Council Chambers
wASHINGTOnI; MINUTES
I. CALL TO ORDER
Councilmembers present: Bill Peloza, John Partridge, Rich_Wagner, Largo
Wales, Wayne Osborne and John Holman. Deputy Mayor Backus arrived
at 2:11 p.m. and Mayor Pete Lewis arrived at 2:32 p.m.
Department directors and staff members present: Finance Director Shelley
Coleman and Deputy City Clerk Shawn Campbell.
II. DISCUSSION ITEMS
A. Review of Budget Process
Director Coleman thanked Council for attending the special meeting. She asked
Council to focus on the layout and format of the handouts.
Councilmember Wagner requested an explanation of the difference between
proprietary funds and enterprise funds. Director Coleman said a proprietary fund is
for the internal services funds that are internal to the City and enterprise
funds consist have a fee for services to customers.
Director Coleman reviewed the differences between a biennial budget versus
an annual budget. She stated a biennial budget saves times, gives a longer
perspective for financial planning, and gives policy makers a better view The
biennial budget is created in an odd year so there is never an election during a
budget cycle. Appropriations for two years makes it easier for long term planning.
Director Coleman stated the City does a minimum of three budget adjustments a
year and more if needed. She said the March adjustment is to reappropriate funds
from the previous year for projects that have not been completed, the June
adjustment is to set the estimated fund balances to actuals, and the December
amendment is to true the budget,
Councilmember Holman asked if the departments have a "use it or lose it"
requirement. Director Coleman said surplus funds that need to be reappropriated
to the next year are done in the March amendment, but the budget does end at
the end of each calendar year and the funds do not carry over She added there is
not a great deal of end of the year spending.
Director Coleman reviewed the budget calendar She explained where the City is
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currently in the process. She said the Finance department will meet with each
department then meet with the Mayor to go over each departments decision
packages. The City will conduct budget workshops with Council and the
department directors. The City must hold two public hearings, and in September
the Finance Department must present to Council the current tax levy information.
Director Coleman gave a detailed description of items in the general fund which
included: Mayor& Council, Human Resources, Finance, City Attorney, Planning,
Jail, Police, Public Works, Parks & Recreation, Streets, and Non-Departmental.
Director Coleman then explained the special revenue funds are mostly restricted
by outside funding sources with requirements from each funding source. The only
special revenue fund that is not restricted by an outside source is the cumulative
reserve or the "Rainy Day fund"
The debt services fund is for bonds and LID's and when the bond or LID is
complete the fund is eliminated.
The capital projects fund include the parks, capital improvements and local
revitalization.
The enterprise funds are for items that are user fee based. Councilmember Wales
asked if funds can be transferred from an enterprise fund to another fund. Director
Coleman said the City cannot simply transfer funds from an enterprise fund to any
other fund. She said the City can loan money between funds. She added the City
can also impose an additional tax on an enterprise fund.
The internal service funds consist of insurance, Facilities, Information Services
and equipment rental. Director Coleman said each department is charged based
on the services they receive in relation to these funds.
Councilmember Peloza asked if bequeaths to the city were prohibited. Director
Coleman said the City may receive tax deductible donations. Mayor Lewis thought
bequeaths are a good idea to explore further Councilmember Peloza suggested
adding a section to the city website. Councilmembers asked how the Parks and
Recreation department handles donations. Council discussed various options to
explore.
Director Coleman shared with Council examples from the previous budget. She
showed Council where to find changes within each piece. Councilmember Wagner
requested footnotes on the roll ups regarding the changes within the budget and
also gross level departmental expenditures.
Director Coleman presented an example of a capital projects fund printout. She
explained how the worksheet works and where to find the information within the
document.
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Director Coleman closed the presentation with the challenges the City faces with
creating a biennial budget.
III. ADJOURNMENT
There being no further business to come before the Council, the meeting adjourned
at 3:35 p.m.
APP D this 16th da of Jul 2012.
Peter BY is, Mayor Shawn Campbell, Deputy Citq Clerk
Items submitted to the July 10, 2012 Special Council Meeting:
City of Auburn Budget Introduction - Director Coleman
2013-2014 Budget Timeline - Director Coleman
Summary of Financial Structure - Director Coleman
Account Number/ Division - Director Coleman
Finance Department Budget- Director Coleman
Municipal Park Construction Fund Budget- Director Coleman
Cemetery Division Budget- Director Coleman
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