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HomeMy WebLinkAboutStaff Report 3.G 04/21/2008CITY OF PETALUMA, CALIFORNIA AGENDA BILL Agenda Title: Resolution Extending the Time for Submission of the 2008/2009 Tentative Budget to June 2, 2008 3.G April 21, 2008 Meeting Date: April 21, 2008 Meeting Time: ® 3:00 PM ❑ 7:00 PM Category: ❑ Presentation ❑ Consent Calendar ❑ Public Hearing ❑ Unfinished Business ® New Business Department: I Director: Contact Person: Administrative Services I Steven Carmichael I Steven Carmichael Cost of Proposal: $0 Amount Budgeted: $0 Attachments to Agenda Packet Item: 1. Resolution Summary Statement: Phone Number: 778-4323 Account Number: Name of Fund: Section 59 in Article IX of the Petaluma City Charter provides in pertinent part that "[o]n or before the first Monday in May in each year, or on such date in each year as shall be fixed by the council, the city manager shall submit to the council a tentative budget ..." The purpose of this item is to request an extension of time for submitting the 2008/2009 tentative budget to the City Council until May 27, 2008 in accordance with Section 59 of the City Charter. Recommended Citv Council Action/Sugeested Motion: Adopt the attached resolution extending the time for submission of the 2008/2009 tentative budget to May 27, 2008. Reviewed by Admin. Svcs. Dir; Date: 43106 Rev: 1 llate Last Revised: 1483896LDOC Reviewed by City Attornev: Date: 1 File. Anprov/d/by,Citx -Man ager: Date: —/' CITY OF PETALUMA, CALIFORNIA APRIL 21, 2008 AGENDA REPORT FOR Resolution Extending the Time for Submission of the 2008/2009 Tentative Budget to June 2, 2008 EXECUTIVE SUMMARY: Section 59 in Article IX of the Petaluma City Charter provides in pertinent part that "[o]n or before the first Monday in May in each year, or on such date in each year as shall be fixed by the council, the city manager shall submit to the council a tentative budget ..." The purpose of this item is to request an extension of time for submitting the 2008/2009 tentative budget to the City Council until May 27, 2008 in accordance with Section 59 of the City Charter. 2. BACKGROUND: The budget process was delayed approximately one month due to the new City Manager arriving on April 1, 2008. In addition, the recession has caused revenues to be significantly less than anticipated in Property Tax, Sales Tax and Development Permit revenues. This has required a much more in-depth review of revenues and expenditures for both the current year and 2008-09 fiscal year. 3. DISCUSSION: Extending the time to submit the proposed budget to May 27, 2008 will provide additional time to develop a balanced budget recommendation and compile a document of the quality to which the Council is accustomed. It should also provide sufficient time for the Council to review the document prior to scheduled hearings, tentatively proposed for early June, to conduct those hearings, and adopt the proposed budget prior to the end of FY 2007/08. 4. ALTERNATIVES: A. Decline to adopt the attached resolution extending the time for submission of the 2008/2009 tentative budget to May 27, 2008. This will affect the quality of the product presented for Council consideration. B. Adopt a resolution specifying a different time for submission of the 2008/2009 tentative budget. The extension requested is the minimum staff believes necessary to adequately develop a balanced budget recommendation and to prepare a budget presentation of the quality to which the Council is accustomed. FINANCIAL IMPACTS: N/A 6. CONCLUSION: Due to various delays and the need for in-depth revenue and expenditure reviews, an extension of the submittal date of the tentative budget is necessary. RECONIMCNDATION: Adopt the attached resolution extending the time for submission of the 2008/2009 tentative budget to May 27, 2008. ATTACHMENT 1 RESOLUTION EXTENDING THE TIME FOR SUBMISSION OF THE 2008/2009 TENTATIVE BUDGET TO JUNE 2, 2008 WHEREAS, Section 59 in Article IX of the Petaluma City Charter provides in pertinent part that "[o]n or before the first Monday in May in each year, or on such date in each year as shall be fixed by the council, the city manager shall submit to the council a tentative budget;" and WHEREAS, Section 59 of the City Charter further provides that the tentative budget submitted to the City Council shall contain an estimate of the probable expenditures of the City for the ensuing fiscal year, stating the amount required to meet the interest and sinking funds for the outstanding funded indebtedness of the City, and the needs of all the City departments in detail, and showing the amount necessary for each fund and department, the estimated income from fines, licenses and other revenues; and WHEREAS, the budget hearing process that staff completes prior to issuing a proposed budget to City Council was delayed by one month waiting for the new city manager; and WHEREAS, staff has identified decreased revenues for current year and further decreased revenues in fiscal 2008-09, making next year's budget process take additional time; and WHEREAS, the above delays have made it impossible to complete a proposed document by May 5, 2008. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma hereby fixes June 2, 2008 as the time for submission -of -the -2008/2009 -tentative -City -of- Petahuna budget in accordance with Section 59 of Article IX of the Charter of the City of Petaluma. 1083896.1 4