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HomeMy WebLinkAbout0217.093- ". April 22, 1;93 HONORABLE CI'I'Y cOmjCIL Palo Alto, California Members of the Council: 3UOGET 9:~-94 This is an infor~ational report and no council action is required. The following are the guidelines adop~ed by the Council for staff to prepa~e the 1992-94 operating budget (CMR:S5S:91): They include the amendment recommended by the Finance Committee at its March 9, 1993 meeting (shown in bold) . .1. The city operating budget 'Yliill be prepared on the basis of a two-year plan, ..... ith the first year being appropriated and the second year ap?roved in cor.cept. The Capital Impraver"ent Program (CIP} "Wi 11 C'ontirtue to be prepared as a five-year plan, with the first b,o years treated in the same manner as the operating budget. Chan3~s to the second-year plan !Jill be limited to priority changes, new mandates, health and safety needs, or significarlt changes in projected expenditures or revenues~ 2. The. city enters the t'w'o-rear-budget process in the middle of an economic dor ... ·nt-urn. Service 1 evels in the General Fund must re:flect the real ities of ong'=ling revenue, sourco;.s. J ~ New revenue sources and increases to exi stinq revenue sources will continue to be aggr-€ssively investigated-, Jceeping in mind the restrictions imposed by the City'S Gann limit. CMR:217:9J If • r. ,--,~ • , ti-~ " , -, - ----.~-.-----------.-~.~ 4. Jolurdcipal f.:;;o,es and ch-:trges shall be determined in accordanc~ w .. ith the cethodology approved by the city cO',mcil in the 1989 Cost Alloc1:lit.ion/lis~r Fee Study. E:..:cept cases ""here it ..... ould cause financial hardship 001. Falo Alto residE:nts, fee recovery goals "IIIil1 be set at ranges whLch approach ]00 percent rec·:}very of total ccsts. 5. No net increase in the number cf Gensz'al Fund positions will be proposed unless th~ positior. can. generate sl..i.ftici""nt revenue to meet or exceed its costs, 6. If revenues permitj salaries ar,d benefits 'oto'ill be established ~ith the goal of keeping the City a competitive employer ~ith slJrroundinq jurisdictions. Ho\o'ever, this does not guarantee that salari~s ,d 11 keep t,;p ' .... i th the Bai Area inflation rate. 7~ The use of volunteers '.will continue to be encouraged to the fullest extent p02sible. 8. The blldget wi 11 continue to I-efl ect an effort to identify improvements through IT'.Ol"e efficient organization and use of City staff and resources. 9. P..ny T:et non-salary expenditure increases or additions in the General Fund mllst be offset. by either equivalent ongoing reve.nues or expenditure reductions. No increase in Cit~{ General Fund non-salary expenditures will be made to adjust for inflation, with the exception of human service contraQts. lO~ COID.'TIunity input on levels of service j given changing economic conditions, shall be used to help prioritize f'..mding levels. 11. Tne General Fund eIP should foclls primar-ily on existing ccmmitm~nt5, ar.d secondarily on any new City prioriti>?s. The Ente.rprise Fund crp, relying as it does on a rate structure to fur.d both capital and maintenanc-2 and operations costs, T"eeds to be prepared w"i th r!2fe:rence to the adopted long-term infrastructure plan for each separate ~tility. Re.o;pectfully sl1bmitted, ~~IiLzu_D EMt.td HARRI SON Finance Director Related Staff Reports: Cl1R:491:91 CMR:217:93 CHR:524 :91 CMR: 5SE! 91 CMR:147:93 II f) XU!-~"0~~ , FUEMI~;;"-·- Managi / "-./ •