CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Annual Budget Workshop #1: 2025 - 2029 Capital Improvement Program
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Development of the Annual Operating Budget and Capital Improvement Program (CIP) is critical in establishing the annual financial framework that supports the City’s mission to provide services that ensure a high quality of life and maintain a dynamic business environment while creating an inclusive community that values diversity. The budget development process begins in August and is guided by the policies and priorities established by the City Council.
Each City department develops its operating budget and CIP recommendations based on historical needs and emerging priorities. Those recommendations go through two rounds of review, the first with the Finance Department and the second with the City Manager’s Office. These assessments review operational changes, discuss department objectives, and analyze recommendations. In consultation with the Finance Department, the City Manager makes the final recommendation to the City Council through the proposed budget published in mid-October.
The proposed budget will be presented to the City Council and the community through a series of workshops. This year, the workshops are scheduled for September 24, October 22, and November 12. Budget workshops establish the groundwork for the formal budget adoption process.
Following the workshops, the City Council will hold a public hearing and be asked to approve the annual budget on December 3. Adoption of the annual budget is followed by a public hearing and the adoption of the annual property tax levy on December 17. To comply with state statutes, the budget and tax levy must be adopted before January 1, 2025.
DISCUSSION:
City departments have prepared their capital improvement plans for 2025 through 2029. Those requests are being evaluated for inclusion in the proposed budget for 2025. Capital projects have become a significant portion of the annual budget, as the City continues to invest in replacing and maintaining critical assets, many of which were built during the City’s growth period from the 1980s to the 2000s. Maintaining investment in these assets is essential for sustaining City operations and supporting economic development.
The first budget workshop will preview capital projects and their funding sources. Projects for 2025 include upgrades to utility infrastructure, transportation infrastructure, technology upgrades and public facility improvements. In addition, the workshop will discuss the rate studies for both utilities, which were presented to the Financial Advisory Board on September 4.
The presentation slides are attached to the agenda.
FISCAL IMPACT:
N/A