HomeMy WebLinkAbout0147.093January 28# 1993
HONORABLE CITY COUNCIL
Palo Alto, California
Attention: Finance committee
Hambers of the councll:
CORRECTED 2/1/93
This is an informational report and no Council action is required~
The following are the guidelines adopted b~' the Council for st.aff
to prepare the 1992-94 operating budget (CMR:S5S:91). These will
continue in operation for preparation of the Interim Budget
adjustments. Also attached is a preliminary schedule for Fina~ce
Committee bUdget hearings and for Council adoption of the budget.
1. The City operating budget will be prapared on the basis of a
two-year plan, with the first year being appropriated and the
second year approved in concept. The Capital Improvement
ProgJ':"am (CIP) will continue to be prepared as a five-year
plan, lid th the first two years treated in tl".e same manner as
the operating budget. Changes to the second-year plan ~ill be
limited to priority changes, new mandates, health and safety
needs, or significant changes in projected expenditures or
revenues.
2~ The City enters the two-year budget process in the middle of
an economic downturn. Service levels in the General Fund mus:t
reflect the realities of ongoing revenue sources.
3. New revenue sources and increases to eXiEting revenue sources
~ill continue to be aggressively investigated, keeping in mind
the restrictions imposed by the City's Gann limit~
4. Municipal fees and charges shall be determined in accordance
~ith the methodology approved by the City Council in the 1989
CMR:147:93
Cost Allocation/User Fee St·.ldy. E)(cept cases where
cause financial hardship on Palo Alto residents, fee
goals .. ill "be set at ranges .... hich approach 100
r-eco,,~ery of total costs.
it 'Mould
recovery
percent
5. No net increase in the number of General Fund positions will
be proposed ur:less the posi;:ion can generate sufficient
revenue to m~et or exceed its costs.
6. I:1: revenues permit, salaries and benefits will be established
with the goal of keepinq the City a competitive employer ~ith
surroundinq jurisdictions. However, this does net guarantee
that salaries will keep up with the say Area inflation rate~
'7. The use of volunteers will contin'.le to be er.couraged to the
full~st extent possible.
B. The budget will continue to reflect an effort to identify
improvements through more efficie~t organization and use of
City staff ar.d resources.
9. Any net non-salar~ expenditure inc~eases or additions in the
General Fund must be offset by either equivalent ongoing
revenues or expenditure reductions. No increase in city
General Fund non-salary expenditures will be made to adjust
for inflation.
10. Community input on levels of service, given changing economic
conditions, shall be used to help prioritize fundinq levels.
11. The Ge.ner-~l Fund CIP should focus primarily on existing
commitments, and secondarily on any new city priorities. The
Enterprise FUnd elF, relying as it does on a rate structure to
fund both capital and maintenance and operations costs, needs
to be prepared with reference to the adopted long-term
infrastructure plC'.n for each separate utility.
Respectfully submitted, Jb. ti.Is'o~A ,()
Finance Director
Related Staff Reports! CMR:491:91
CM;<:524:91
CMR:558;91
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~ 1993-t4 :?INANCE COHMIT'rI! BtJOGE'l' ilUBLIC REAlt.:INGfJ
1/28/93
All meetings to be held in the council Conference Reom, City Hall,
at 1:00 p.m.
1IAL..?2 -Tuesday
Budget Oveni,,;,.
General Fund Reviews
May 27 -Thursday
Capital 1mprovernent Program
~..J -Thursday
Enterprise Funds
June 8 -Tuesday
Wrap-up and Municipal Fee Schedule
Council Adoption is scheduloed fer Mon::iay, J.;ne 21.