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HomeMy WebLinkAboutOrd2021-001 - Budget Process1 1 Sponsored by: Mayor Terry Introduction Date: January 11, 2021 Public Hearing Date: January 25, 2021 Enactment Date: January 25, 2021 CITY OF SEWARD, ALASKA ORDINANCE 2021-001 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AMENDING PORTIONS OF SEWARD CITY CODE CHAPTER 5.05 — BUDGET TO CREATE A MORE TIMELY, ROBUST, AND PUBLICLY -INVOLVED BUDGET PROCESS WHEREAS, in 2010, the City of Seward transitioned to having a biennial budget; and WHEREAS, the budget process is one of the key events the City conducts during which the public's involvement is critical; and 1 WHEREAS, good public participation practices help governments, in general, to be more accountable and responsive to their communities, and also help to improve the public's perception of governmental performance and the value the public receives from their government; and WHEREAS, the budget, as an instrument, should accomplish all of the following: • weighs policy priorities against available public resources • specifies the ways and means of providing public programs and services • establishes the cost of programs and the criteria by which these programs will be evaluated for efficiency and effectiveness • ensures that programs will be evaluated at least once each budget cycle • redistributes income • provides the government with a spending limitation; and, • provides transparency by which the government may be held accountable at the end of each budget cycle; and WHEREAS, developing the budget is more than just number crunching — the budget is a reflection of the community's strategic plan, and should consider the needs and priorities of all stakeholders, from citizens and business leaders to employees and government officials; and WHEREAS, developing a more timely, robust and transparent budget process will improve the City's credibility and trust within the community. NOW, THEREFORE, THE CITY OF SEWARD ORDAINS: (Deletions are stri, r e., t/irough. bolded and :tali, zcd; Additions are italicized, underlined, and bolded.) CITY OF SEWARD, ALASKA ORDINANCE 2021-001 Section 1. Seward City Code Chapter 5.01 — Fiscal Year is hereby amended to read as follows: 5.01.010. - Fiscal year. 3000r The fiscal year of the city shall begin on January 1 of each year. Section 2. Seward City Code Chapter 5.05 — Budget is hereby amended to read as follows: 5.05.005 — Budget ussuniptions. (a) The City of Seward operates on a traditional biennial budget beginning on January l s' and ending on December 31n of each odd year. (b) By the first Friday in September of each even year the city manager shall present to the council an overview of preliminary budget assumptions for a budget period containing the next two fiscal years. These preliminary budget assumptions will address, by fund, revenue projections= tax and utility rates, program additions or deletions, wages and benefits, and any other issues havingpotential effects upon the City's overall financial condition. 5.05.010. — Budget proposal. The city manager shall present to the council a budget proposal for the next two fiscal years of the city at least 45 days prior to the next biennial fiscal year. Such budget proposal shall set forth the city manager's recommended tax rate based on an analysis of the anticipated income and expenditures of the city for the next two fiscal years. #21 The proposed expenditures set forth in the budget proposal shall not exceed the expected revenues of the city. f Unencumbered funds remaining at the end of each fiscal year may be reallocated for purposes set forth in the budget proposal. (d) Six year program for capital improvements. (1) The manager shall submit a six year program for capital improvements for the following six fiscal years with each budget proposal The program shall include estimates of the effect of capital improvement projects on maintenance, operation, and personnel costs. f2} The proposed capital budget will be presented by the city manager as a separate section of the biennial budget. The capital budget shall show expenditures during the ensuing budget period, detailed by offices, departments and agencies, when practicable, and the proposed method of financing each such capital expenditure. id The council shall by June 15 of each year present to the borough assembly a statement of the city's rate of levy, unless a different date is agreed upon by the borough and city. 1 1 1 1 CITY OF SEWARD, ALASKA ORDINANCE 2021-001 5.05.015. - Review; hearing; adoption. (a) Review. The budget proposal of the city manager shall be reviewed by the council and shall be available for public inspection in the office of the city clerk. Except as provided by SCC 2.92.090, or by other provisions of city, state, or federal law, the public shall be giver full, free, and unrestricted access to all municipal documents and records, including drafts, prepared by or for the city or city council in connection with annual operating and capital budgets. Public access to budget preparation materials shall not be restricted or denied by any city official or employee on the basis of any claim of executive or deliberative process privilege. (5) Hearing. Council shall direct that a at Ieast two public hearings on the biennial budget proposal, the first public hearing shall be held no sooner than fourteen (14) days after the budget is presented to council. The second public hearing shall be held not less than one week before its final adoption. Notice of the public hearings shall be published in a newspaper by the city clerk at least one week prior to the date of each hearing. (c) Adoption. At a regular meeting held not less than ten days prior to the end of the even fiscal year, the council shall, by resolution, adopt a budget for the next two fiscal years and make appropriation of the money needed therefore. If the council does not adopt a budget prior to the third day preceding the commencement of the next fiscal year, the budget proposal as presented to the council by the city manager shall be deemed to be the budget for that fiscal year and shall be held to make an appropriation therefor without any further council action. without -any fitilift2illfetiefir Section 2. This ordinance shall take effect ten (10) days following its enactment. ENACTED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA this 25th day of January, 2021. T /I Y 1. SEWA ' I f SKA Christy Ter , , Mayor AYES: McClure, Casagranda, DeMoss, Seese, Osenga, Baclaan, Terry NOES: None ABSENT: None ABSTAIN: None CITY OF SEWARD, ALASKA ORDINANCE 2021-001 ATTEST: Brenda ]. Ball City Clerk (City Seal) 1 1 Agenda Statement Meeting Date: January 11, 2021 To: City Council From: Mayor Terry Agenda Item: Ordinance 2020-001, Amending Portions Of Seward City Code Chapter 5.05 Budget To Create A More Timely, Robust, And Publicly -Involved Budget Process BACKGROUND & JUSTIFICATION: In 2010, the City of Seward transitioned to having a biennial budget. The budget process is complex and involved, and should not be an expedited process; rather, it should be conducted incrementally and progressively to ensure adequate input from all parties. It is critically important that the public be involved in the process, that the review and development of the budget be transparent, and that the members of the city council have the utmost confidence in their understanding of all components of the budget when voting to approve it. Establishing a more predictable schedule and clarifying expectations for everyone will facilitate the process and result in a more satisfactory outcome. INTENT: To develop a more timely, robust and transparent budget process will improve the City's credibility and trust within the community. CONSISTENCY CHECKLIST: No N/A Comprehensive Plan (document source here): Strategic Plan (document source here): Other (list): Seward Charter FISCAL NOTE: There is no fiscal impact associated with this resolution. Approved by Finance Department: ATTORNEY REVIEW: YesX:............................................ Not Applicable ,,,,,,,........... Edits from City Attorney have been included in the Ordinance being presented. RECOMMENDATION: Enact Ordinance 2020-001