2. 2010/2011 Budget ProcedureCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
REPORT TO: Honorable Mayor and City Council
FROM: Jane Howington, City Manager
SUBJECT: 2010/2011 Budget Procedure
MEETING DATE: September 14, 2009
The budget portion of the September 14, 2009 work session is intended to initiate a dialog
between Council and staff on the budgeting process for the upcoming fiscal year. Being the "new
kid on the block" provides a great opportunity to review how budgets have been developed in the
past, what the community needs are, what state laws and mandates require of the City, and how
we want to handle the provision of services in a changing economy. While we all have roles in
this process, it is easy to overlook the weaving together of these roles and the team based
approach that provides efficiencies and effectiveness in the fiscal management of our local
community.
To initiate the dialog on Monday, I'll present a draft calendar of the next 12 months which
will indicate how staff will be working on the review of current practices and how this
information will be provided to Council. Additionally, the calendar will propose a series of work
sessions with Council on thematic budgetary issues. Items like capital planning, review of the
enterprise operations, personnel, etc. will be identified on the calendar and will provide a
cumulative understanding of how a budget is built and why the components of the budget are as
they are.
Beyond the calendar, I'm hopeful that Monday's discussions will assist me in
understanding what budgetary elements will need more extensive review and what budgetary
elements the Council and staff have pretty good handles on. The intent of this process is not to
bring Council into a micro -management role, but to enable a full team based approach to the
City's fiscal management and to provide transparency in our budgetary process.
Respectively submitted,
hhe Howington
City Manager
�- � City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
MDNTAANNA Telephone: (406) 758-7701 Fax: (406) 758-7758
Budget Work Session: September 14, 2009
Theory into Practice
Items to consider include:
Past budget development
Community needs
Laws and mandates
Provision of services in a changing economy
Current practices
Allocation of positions within funds
Line item transfers
Exercise of administrative purchase authority
Grant applications and approval process
Growth management plans
Land use
Community development
Economic development
Personnel
Health insurance
Withholding
Pay bands
Unions
Retirement/pensions
Unemployment
Workers compensation
Capital Planning
Projects
Equipment/replacement
Facilities
Future needs
Public Safety
Police
Fire
911
Ems
Financial
Debt
Capacity
Outstanding
Investments
Payroll, collections, billing
Assets and liabilities
Process for Discussion and Review:
Moving from the big picture view to the very focused view.
The following calendar of work sessions is proposed dedicating the 4th Monday of every month
to budgeting discussions:
Month 1
Review of the long range direction our current ordinances and regulations are moving the City
toward. This will include a recap of the 20 year growth management plan, the zoning code,
available capital programs and the annual (past) budget.
Month 2
Review the constraints on the City. Discuss laws, mandates and policies that impact the City's
operations. Review the assets and liabilities, the personnel requirements including collective
bargaining.
Month 3
What are the parameters and drivers impacting the City. Review the financial, economic and
political climate shaping our direction. Also look at grant programs and how they fit or don't fit
within the current climate.
Month 4
In depth work session on human resources.
Month 5
In depth work session on capital planning.
Month 6
In depth work session on finance.
Month 7
Council review of budget staff prepares as a result of the work sessions 1 through 6.
Continuous Improvement Action Plans
While going through the above outlined process, the staff will be working on review and analysis
of the current budget and our operational practices. Techniques that will be employed include
benchmarking, best practices, cost/benefit analysis, and a look at potential revenue generation and
grant opportunities. Examples may include items such as how the purchase process functions for
items included in the current budget; the practice of line item transfers and developing a tracking
system; review of fund allocations for individual positions; contracting services verses in-house
provision; employment of efficiency measures such as combining phone services; and using
technology to increase efficiencies.
Reports or legislation (where required) will be presented to Council as these items are completed.