AGENDA #2b

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Budget Development Process Options

DATE:                        January 12, 2006

Below we offer budget development process options for the Council’s consideration, based on past practices and on the Council’s recent discussions.  General budget development calendars are shown for each option.  We recognize that there are many options for the budget development process and will be pleased to assist the Council in whatever process it believes best for the community this year. 

Key differences among the options are highlighted.

Option One:  Follow the basic process that was used in 2004.

1. Current budget status report and forecast of key issues for 2006-07 budget at January Council planning session; Council discussion of potential key budget issues.
2. January public forum on developing the 2006-07 budget.
3. Early to mid-February presentations on budget and policy issues by all advisory boards.
4. Mid to late February presentations on budget and service issues by all department heads.
5. Early March presentation of preliminary budget and key issues.
6. Late March forum on preliminary budget and related issues.
7. Early April budget work session on budget and related issues.
8. Late April presentation of Manager’s recommended budget for 2006-07.
9. May and early June budget work sessions on issues as desired by the Council.
10. Mid to late June adoption of 2006-07 budget.

Option Two: Follow a process based on the 2005 budget calendar.

1. Current budget status report and forecast of key issues for 2006-07 budget at January Council planning session; Council discussion of potential key budget issues.
2. January public forum on developing the 2006-07 budget.
3. Early March presentation of preliminary budget and key issues.
4. Late March forum on preliminary budget and related issues with brief presentations (3-5 minutes) by chairs of advisory boards on budget and service issues.  (No presentations by departments.)
5. Early April budget work session on budget and related issues.
6. Late April presentation of Manager’s recommended budget for 2006-07.
7. May and early June budget work sessions on issues as desired by the Council.
8. Mid to late June adoption of 2006-07 budget.

Option Three: Follow a process that focuses on key issues.

1) Current budget status report and forecast of potential issues for 2006-07 budget at January Council planning session; Council discussion of potential key budget issues.

2) January public forum on developing the 2006-07 budget.

3) Late March work session on preliminary budget and related issues with:

a) Presentation by Manager focusing on key services, policies and costs of potential base budgets in all departments and Funds.

b) Presentation by Manager and selected department heads limited to proposals for significant changes in services, policies and costs in any department or Fund.

4) Late March forum on preliminary budget and related issues with brief presentations (3-5 minutes) by chairs of advisory boards on budget and service issues.

5) Early April budget work session to discuss services, policies and costs and identify the Council’s key interests.

6) Late April presentation of Manager’s recommended budget for 2006-07.

7) May and June budget work sessions on issues as desired by the Council.

8) Late June adoption of 2006-07 budget.