CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct the public hearing for the 2021 Annual Operating Budget (Item 1 of 2)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The annual budget is the City's financial and operational plan. It serves as the guide for the upcoming budget year, as well as setting the stage for future years' efforts through initial budgetary investments in multi-year programs and services. The budget development process brings together input from elected officials, department directors, staff, and the public to shape the City's goals and objectives for the coming year and beyond.
Per state statute, a public hearing on the proposed 2021 Annual Budget will be held at the December 1, 2020 City Council meeting prior to the adoption of the budget ordinance. Once the hearing concludes, the budget may be revised and passed without further public inspection, notice, or hearing.
DISCUSSION:
Budget Process
Due to the onset of the COVID-19 global pandemic, the 2021 budget development process took a different approach than previous years. In March 2020, the City began experiencing the financial impacts of the pandemic, and, in response, began closely analyzing revenues and expenditures. Since May, staff has presented monthly financial reports to the City Council. Those monthly reports included discussions on potential responses to the economic impacts of the pandemic and the appropriate timing of those actions. These discussions led to several actionable responses, including a $25 million amendment to the 2020 capital improvement budget, an expanded debt issuance to take advantage of low interest rates, and an amendment to the Home Rule Sales Tax (HRST) and Food and Beverage Tax ordinances to allow for temporary alternative use of those revenues. Council and staff carefully considered each of these actions while understanding that the City's strong financial base a...
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