CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Conduct the public hearing for the 2022 Annual 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 that serves as a guide for the upcoming year and sets the stage for future investments in 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 2022 Annual Budget will be held at the December 7, 2021 City Council meeting prior to 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 & Initial Recommendation
The City's mission statement and financial principles are the primary influences in the budget development process. Throughout 2021, monthly financial reports to City Council provided a forum for regular conversations on the City's financial position. The conversations set the stage for a more efficient budget process, as City leaders and the community were better informed about financial trends that helped form next year's financial plan. The budget development process officially began in August with department's submitting requests for operating budgets and capital improvement programs (CIP). The requests go through two levels of review with the Finance Department and City Manager's Office before the initial budget recommendation is compiled and presented to City Council in October.
The initial 2022 budget recommendation totaled $540.49 million, an increase of 7.6% from the 2021 budget of $502.42 million. The overall increase is largely driven by increases in the CIP, which accounts for $107.0 million, or 19.8%, of th...
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