DATE: January 12, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Finance Director
Mike Lowe, Comptroller
Michael Walters Young, Business Process Improvement Manager
SUBJECT:
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Consideration of Resolution 2015-__ A Resolution adopting FY 2016 Budget Goals
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Purpose
At the last meeting of the Budget & Finance Committee, staff provided information concerning the upcoming FY 2016 Budget Process. As part of that conversation, members of the BOMA were presented with FY 2015 budget goals and asked to reflect upon what goals Board members would be interested in setting for FY 2016. A request was made to advance that discussion to the next available work session.
Attached are several items, including a copy of the FY 2015 Budget goals.
Background
The turn of the calendar means the beginning of a new budget process for the City of Franklin. Fiscal Year 2016 will present similar challenges and opportunities for the City as we endeavor to do our best to provide the citizens and taxpayers the best municipal services possible in the most cost-efficient manner. In order to tackle the challenges of the next fiscal year and beyond, there are several process changes which the BOMA and the public will see throughout the budget process over the next five months. While some things will not change (such as the overall budget calendar) and others will require direct action and review from the BOMA (budget goals), how budget data is presented and evaluated will change. These changes include:
Creation of Revenue Modeling
Beginning with the Budget and Finance Committee Meeting of January 8th, members will notice a new presentation of the General Fund Revenues. This presentation, designed to bring more clarity while simultaneously providing the sub-components of the Top 10 General Fund Revenues, will be utilized again in April when forecasted revenues will be solidified ahead of final budget decisions in May for all funds. In creating this template, we have been able to build a model for our revenues which in many cases allows us to analyze a quarter century's worth of data. The more data we have available, the more reliable our trend analysis and revenue forecasting can become. The Preliminary General Fund Revenue model will be presented at the Budget & Finance meeting of the 8th.
Base vs. Program Enhancement Budgets
Beginning with departmental budget presentations in February, the Budget & Finance Committee will be presented with two sets of budget requests. Departments will be asked to present a base or 'level-service' budget - that is, how much will it cost the City to provide the same level of service in FY 2016 that it does in the current fiscal year - and a set or series of program enhancements. For additional staff, major expenses or small capital equipment, departments will fill out a Program Enhancement Request Form for each request. This simple form will document the basic information of program enhancements - both in a numeric and narrative format - and be in priority order. The desired goal with instituting this method of budgeting is to more easily demonstrate a) the ongoing costs of maintain operations and b) more easily demonstrate the additional needs of departments in a priority order. A sample Program Enhancement Request form is attached.
Departmental Budget Layout
Also beginning in February, departmental budgets will be redesigned in a slightly different format. It is essentially the same as the final format utilized in FY 2015, but with the integration of the applicable departmental performance measures in order to integrate the City's strategic plan, FranklinForward, into daily operations and the annual budget. All departments will have the same layout of information - a basic budget summary, followed by departmental mission & goals, a departmental narrative, performance measures, organizational chart and staffing history, and finally budget detail. A sample is attached for the Building and Neighborhood Services division.
In addition to a common departmental budget document, all departments will also present a standardized powerpoint using the same template.
Finally, we have reattached the FY 2016 Budget Process Calendar and the FY 2015 Budget Goals for your review and consideration. Please take time to consider and reflect on those goals as we move forward into the FY 2016 budget process.
We hope that these improvements and modifications will assist you in the most important policy decision you make annually - the creation of the City's annual operating budget.
Financial Impact
There is no direct financial impact as a result of this particular agenda item; except, of course the decisions which are made through the process as it moves forward.
Recommendation
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There is no action required of the Budget and Finance Committee at this time. Feedback on the process and all of proposed enhancements throughout the next five months is most welcome and we are eager to begin working with the BOMA on building a better budget in Franklin.