Rancho Palos Verdes City Council
   

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: ASSISTANT CITY MANAGER

DATE: FEBRUARY 3, 2004

SUBJECT: BUDGET MEETING SCHEDULE FOR FY 04-05

RECOMMENDATION

Select two dates in mid to late May for the City Council budget review sessions (only one date may be necessary).

BACKGROUND

Last year, the City Council conducted an extensive series of public budget policy workshops and budget review sessions in the course of preparing the current two-year budget document covering FY 03-04 & FY 04-05. Typically during the first year of the two-year budget cycle, the Council holds one or two budget policy workshop in late March or early April and then holds one or two public budget review sessions in May to review the draft budget document. Then, as required by the Municipal Code, the Council holds one or two (typically only one is necessary) public hearing(s) in June, prior to adopting the budget for the next fiscal year. While the existing budget document includes estimated revenues and proposed expenditures for both Fiscal Years 03-04 and 04-05, the Council has only adopted the budget for the current fiscal year (FY 03-04). The budget for FY 04-05 is shown as "proposed" in the two-year budget document.

During the second year of the two-year budget cycle, the process is much more abbreviated because only minor adjustments are generally made to the budget document through the preparation of a budget addendum. Typically, the City Council holds one budget review session in late April or early May, followed by one public hearing in June to adopt the second year budget.

DISCUSSION

As the Council will recall, the current two-year budget document was prepared with the assumption that the City would lose the Vehicle License Fees (VLF) backfill. Although Governor Schwarzenegger restored the VLF in November 2003 following his election, his draft budget proposal released earlier this month includes another Educational Revenue Augmentation Fund (ERAF) property tax shift. Due to the conservative budgeting the City Council engaged in last year, the revenues projected in FY 04-05 proposed budget should not be less than estimated. However, given the uncertain outcome of the state budgeting process, especially the pending the bond initiative on March 2004 ballot, a budget review session in late April or early May would be appropriate following the outcome of this important vote and the issuance of the state’s May Revise Budget.

Staff is asking the City Council to schedule two budget review sessions to review and comment on any budget policy issues and the proposed amendments to the FY 04-05 budget prior to the formal public hearing(s) in June. If the Council completes its review of the draft amendments at the first budget review session, a second session will not be necessary. Below are two suggested dates for the budget review sessions that are regular Council meeting nights:

Tuesday, April 20th

Tuesday, May 4th

The proposed public hearing date for the adoption of the FY 04-05 budget is tentatively scheduled for the June 1 or June 15, 2004 City Council meetings, depending on when the budget review session(s) are conducted.

Respectfully submitted,

Carolynn Petru

Assistant City Manager

Reviewed:

Les Evans

City Manager