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HomeMy WebLinkAboutStaff Report 3.F 04/18/2011<S A L try q 8r�'8 DATE: TO: FROM: SUBJECT April 18, 2011 O-WO SO M f� Honorable Mayor and Members of the City Council through City Manager Susan Mahoney, Interim Finance Director Resolution Fixing the Date for Submission of the FY 2011 -12 Tentative Budget as May 19, 2011 RECOMMENDATION It is recommended that the City Council adopt the attached resolution fixing the date for submission of the FY 2011 -12 Tentative Budget as May 19, 2011. BACKGROUND By the City's Charter, the City Manager is required to provide, on or before the first Monday in May; a Tentative Budget for the next .fiscal year unless the City Council extends the deadline for submittal. 'The City of Petaluma projects an approximately $3.6M combined General Fund shortfall for fiscal years 2011 -12 and 2012 -13, which is anticipated to grow to $15M in FY 2015. Per Council's direction, staff will present a $4M correction to the FY 2012 General Fund budget. Based on current assumptions, this correction will maintain a balanced General Fund through FY 2015. Additional time is needed to negotiate the necessary solutions to correct the projected budget imbalance. DISCUSSION It is hoped that extending the `submittal date to May 19, 2011 will allow staff time to provide a balanced budget. that reflects the Council's direction. The submittal date will still provide Council sufficient time to review the Tentative Budget prior to hearings in June. Agenda Review City Attorney Finance Director City Manager Following is a revised budget schedule: May 19 Tentative Budget Submittal Week of May 23 — Budget Workshop June 6 ­Adopt Budget (requires 7 7-0 vote) OR First Reading of Appropriation Ordinances and Resolution providing _for temporary funding from July 1, through September 30 June 20 (if required) — Second "Reading of Appropriation', Ordinances, and Resolution adopting the budget FINANCIAL IMPACTS There are no financial impacts with regard. to extending the Tentative Budget submittal date. ATTAdIMENTS 1. Resolution fixing the: date for submission of `the FY2011 -12 Tentative Budget as May 19, 2011 . Resolution No. N.C.S. of the City of Petaluma, California FIXING THE -DATE FOR SUBMISSION OF THE FY 2011 =12 TENTATIVE BUDGET AS MAY 19, 2011 WHEREAS, Article IX, Section 59, of the Petaluma City Charter provides in part that "...on 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, staff has identified a decrease in revenues for the current year and further decreased revenues for FY 2011 -12; and, WHEREAS, additional time is being requested to allow staff time to provide a Tentative Budget that is balanced and reflective of the economic conditions the City is currently facing. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby fix -May 19, 2011 as the date for submission of the FY 2011 -12 Tentative Budget for the City in accordance with Article IX, Section 59 of the Charter of the City of Petaluma.