Laserfiche WebLink
Page 1 of 16 <br />Item #1 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />January 9, 2025 <br />Finance <br /> <br />TITLE: CITY COUNCIL BUDGET WORKSHOP: BUDGET UPDATE, BUDGET <br />PRINCIPLES AND KEY FINANCIAL POLICIES <br /> <br />SUMMARY <br />The City operates on a two-year budget cycle. Prior to July 1 of every odd numbered year, the <br />City Manager submits to the City Council a proposed two-year budget for the subsequent two <br />fiscal years (the biennial budget). In preparation for the development of the fiscal years (FY) <br />2025/27 budget and upcoming meetings with the City Council, community, and/or Budget <br />Advisory Committee (if the City Council chooses to establish), staff is providing a budget <br />presentation at a January 9, 2025, City Council workshop. The objective of the workshop is to <br />provide the City Council and the public with a high-level overview of the City’s budget, financial <br />challenges, budget principles, and key financial policies. Staff will also seek input from the City <br />Council regarding the budget principles that will be used to guide the FY 2025/27 and future <br />budget development. Among the topics that will be covered at the January 9 workshop are: <br />• Budgets and budget process <br />• Restricted vs. unrestricted funds/sources <br />• Financial challenges <br />• Infrastructure and state of good repair needs <br />• Reserves and pension and retiree medical trust funds <br />• Long-range financial planning and forecast assumptions <br />• Key financial policies <br />• Budget principles. <br /> <br />This workshop and presentation is a high-level introduction to the City’s budget; there will be <br />other opportunities for City Council and community input as the City develops the FY 2025/27 <br />budget. A budget development timeline and calendar will be shared in a separate agenda item <br />regarding the proposed budget engagement plan on the January 9, 2025, City Council meeting <br />agenda. <br /> <br />RECOMMENDATION <br />1. Receive a budget presentation, including budget principles and key financial policies <br />2. Provide feedback and approve high-level budget principles <br /> <br /> <br />BACKGROUND <br />The City is confronting significant fiscal challenges, which have been presented to the City <br />Council and the public over the past 20 months. <br /> <br />Long-Range Financial Forecast Model <br />Page 3 of 109