| ITEM #: 1. DATE: 02/07/2022 AI #:601 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | GENERAL FUND FY2022 AND FY2023 STATUS AND FIVE-YEAR FORECAST AND CITYWIDE FINANCIAL POLICIES |
| STAFF PRESENTER(S): | Ryan Bittle Finance Manager, Budget and Research, Doug Sandstrom, Finance Director |
Summary
This is an informational session that serves as a step in forming the FY2023 Annual Budget and FY2023-FY2027 Capital Improvement Program. (Ryan Bittle Finance Manager, Budget and Research, Doug Sandstrom, Finance Director)
STIPULATIONS
Staff will present the General Fund five-year forecast as well as initial estimates for FY2022 and the FY2023 upcoming budget year. Also included will be proposed revisions to financial policies and information on known one-time General Fund upcoming demands. This information and Council discussion about budget priorities will provide the basis for bringing forward the annual adoption of Financial Policies and guide the City Manager in developing a recommended budget for FY2023.
FISCAL IMPACT
This is a step in the process to develop the budget for FY2023.
BACKGROUND AND PREVIOUS ACTIONS
The budget process is year-round. Each month staff prepare a financial report, with more detailed analysis on a quarterly basis, to monitor current year expense and revenue trends relative to the adopted budget and to guide development of estimates for the next year budget. Budget adjustments are made throughout the year and brought forward for Council approval as required according to Council Resolution and state law.
For FY2022, we’ve seen strong revenue growth and increasing costs of doing business due to inflation. These themes, along with a continued emphasis on fiscal conservatism, form the baseline of our assumptions moving forward into FY2023.
For FY2022, we’ve seen strong revenue growth and increasing costs of doing business due to inflation. These themes, along with a continued emphasis on fiscal conservatism, form the baseline of our assumptions moving forward into FY2023.
STAFF ANALYSIS
This step in the budget process provides an early look at the FY2023 budget and the city’s ability to take on new projects or initiatives and helps guide the Council in understanding how decisions in the FY2023 budget may impact the future. In addition, this provides another opportunity for the Council to provide direction in terms of both revenue and expenditure policies and spending priorities.
Next Steps
With the direction from this Work Session, staff will return later requesting approval of any changes to the Financial Polices. Those policies, Council, and other input will guide the City Manager in developing a recommended budget to be presented in April.
Next Steps
With the direction from this Work Session, staff will return later requesting approval of any changes to the Financial Polices. Those policies, Council, and other input will guide the City Manager in developing a recommended budget to be presented in April.