11.A.
City Council Meeting - FINAL
- Meeting Date:
- 06/16/2020
- From:
- Brandi Suda, Finance Director
Information
TITLE:
Consideration and Adoption of Resolution No. 2020-36: A resolution of the Council of the City of Flagstaff, Arizona, adopting the Budget for the Fiscal Year 2020-2021.
STAFF RECOMMENDED ACTION:
1) Read Resolution No. 2020-36 by title only
2) City Clerk reads Resolution No. 2020-36 by title only (if approved above)
3) Adopt Resolution No. 2020-36
4) Reconvene Regular Meeting
2) City Clerk reads Resolution No. 2020-36 by title only (if approved above)
3) Adopt Resolution No. 2020-36
4) Reconvene Regular Meeting
Executive Summary:
Each municipality is required to adopt a budget as prescribed by A.R.S. Title 42, Chapter 17, Articles 1 through 5. As published in the tentative adoption of the budget, the final budget is to be adopted on June 16, 2020, (during a Special Meeting), and following a public hearing to receive citizen comments.
Financial Impact:
The final budget adoption allows the City to commit and spend funds for community needs as described in the Fiscal Year (FY) 2020-2021 Budget. This will set the maximum allowable expenditures for FY 2020-2021.
Policy Impact:
The FY 2020-2021 budget is the financial plan of the City for the upcoming fiscal year.
Connection to Council Goal, Regional Plan, CAAP, and/or Strategic Plan:
The adoption of the Annual Budget and Financial Plan provides Council direction and financial resources to support the Council Goals, Regional Plan and Team Flagstaff Strategic Plans.
Has There Been Previous Council Decision on This:
- September Priority Based Budget Retreat on September 24, 2019
- February Budget Retreat on February 3, 2020, and February 4, 2020
- Council Budget Work Session on April 23, 2020, and April 24, 2020
- Tentative Budget Adoption on June 2, 2020
Options and Alternatives:
- Approve the budget as presented: As the City adopted the tentative budget on June 2, 2020, the maximum appropriation for FY 2020-2021 has been set.
- Amend and approve the budget: The Council could choose to make adjustments within that maximum appropriation or make reductions in the maximum appropriation.
Background and History:
The budget was presented for tentative adoption on June 2, 2020. The tentative adoption established the maximum appropriation for the City for FY 2020-2021. The budget legal schedules were published in the Arizona Daily Sun on June 4, 2020, and June 11, 2020.
Key Considerations:
The adoption of the tentative budget set forth into motion a legally mandated time sequence of actions of which the Council must adhere to adopt a final budget. If this time sequence is not met as required by statute, the tentative budget adoption, final budget adoption, and related publications must be started over. The final budget adoption must occur after a public hearing and Council must convene into a Special Meeting to adopt the final budget. The budget must be adopted by the third week of July.
June 2, 2020 Tentative adoption of the budget by Council
June 16, 2020 Public hearing on FY 2020-2021 Budget and Property Tax Levy
June 16, 2020 Final budget adoption (done in a Special meeting)
June 16, 2020 Public hearing on FY 2020-2021 Budget and Property Tax Levy
June 16, 2020 Final budget adoption (done in a Special meeting)
Community Benefits and Considerations:
Funds must be appropriated to allow for expenditures to occur. The proposed budget was built on revenue estimates prior to the COVID-19 pandemic. Staff is seeking adoption of the budget based on these estimates to set the maximum allowable expenditures. While revenues may be less than the adopted budget and staff have prepared several scenarios for potential revenue declines, we do not have sufficient data to support specific revenue declines. The City can spend less than the adopted budget, however, we cannot exceed the budget even if revenues are higher than what was adopted.
In April 2020, the City Council adopted a 2020 Economic Recession Plan ("Recession Plan") and Council approved moving to the significant stage on May 26, 2020. The City will use the Recession Plan for guidance in expenditure reduction measures to ensure we stay within the resources available as a result of the current financial uncertainties related to the COVID-19 flu pandemic. The City is closely monitoring financial revenue data as received in order that the City may make appropriate spending decisions.
In April 2020, the City Council adopted a 2020 Economic Recession Plan ("Recession Plan") and Council approved moving to the significant stage on May 26, 2020. The City will use the Recession Plan for guidance in expenditure reduction measures to ensure we stay within the resources available as a result of the current financial uncertainties related to the COVID-19 flu pandemic. The City is closely monitoring financial revenue data as received in order that the City may make appropriate spending decisions.
Community Involvement:
The budget process has allowed for public participation which is vital for the City Council in determining the current year goals and objectives. The budget assists in translating the community's goals and objectives as determined by City Council into fiscal reality. Timely budget adoption allows the City to commit expenditures as related to the FY 2020-2021 Budget as needed for ongoing operational consistency to the citizenry. The FY 2020-2021 Budget is balanced.
Expanded Options and Alternatives:
Inform/Involve: Earlier this evening there was a public hearing to receive any last public comments prior to final budget adoption. Budget legal schedules were published in the June 4, 2020, and June 11, 2020, Arizona Daily Sun to allow for community review. In addition, the legal and other budget schedules were made available at City Hall, at both Flagstaff Public Libraries, and on the official city website.