This is meant as a reference post about the budget in general. Specific items or issues will be documented separately and linked to as appropriate. If you find a mistake or disagree with anything, please get in touch.

Current Status

The Mayor presented her budget proposal to Council on July 18, 2024.

Timeline

• August 5 CIP workshop
• August 19 Operating workshop
• September 3 1st Public Hearing
• September 17 2nd Public Hearing and Adoption
• FY24 ends on October 1st.

Formal Process

Per the charter, the fiscal year (FY) begins on October 1st. On or before August 16, the Mayor is required to present a budget to Council. Council is required to hold at least one public hearing on the budget that is noticed and held within 3 days of the adoption of the budget. Council can make any changes they want to the budget and then they send it back to the Mayor. The mayor can either approve the budget as presented or they may veto “in whole or by sections or by specific items”. Council can then override a veto with 2/3 majority (5 votes.) If a budget isn’t approved by October 1st, the mayor can recommend basic expenses (paying people and previously obligated expenses—debt) to Council. In essence, no new spending until a budget is approved.

Historically

Historically, and bear in mind there hasn’t always been the kind of revenue (or bonding) the city is experiencing currently, the mayor meets with Council member’s individually prior to the budget proposal to get their input on priorities and pet projects. There’s some discussion and hand wringing but the votes are generally there before it’s presented and it passes without much controversy. Again, historically it was sometimes as much about deciding what needed to be cut. Something politicians prefer to distance themselves from.

That changed dramatically for FY24 when in August of 2023, Council voted to reject the Mayor’s proposed millage increase. They were left with a proposed budget ~$45 million more than they had in projected revenue. There was no plan or process in place to come up with a balanced budget. The Mayor’s position was rooted in the Charter. She presents a budget and then it’s up to Council to approve something. Council expected the Admin to return with a balanced budget. Ultimately the Admin presented to Council an hour before they met a revised budget based on general feedback from Council that was approved.

Timeline

The Mayor will be presenting her budget proposal for FY25 on July 18, 2024. Special call workshops are scheduled for August 5 and 19th. I could not find reference to anything else budget adoption related on the calendar.

Council will be approving a total of 3 things:

1. 5 year Capitol Improvement Projects (CIP) plan
2. FY25 CIP
3. FY Budget

I put them in that order because I think that’s how they should be considered. The 5 year CIP is legally required. It’s meant to be a road map for major expenditures over the next 5 years. It’s something required by state law. To me it’s meant to build in some kind of continuity for a city beyond elections every 4 years. What it isn’t is an obligation of funds for any year except the current fiscal year. There can be a half a billion dollar project in FY30 of the plan but that doesn’t mean half a billion dollars has been obligated. What it should mean is the City anticipates having half a billion in FY30 for the project.

Council approves a 5 year CIP that includes the FY25 CIP as part of the FY25 budget.

My Opinion

And that’s where this has been allowed to be confusing in the past. Approving the budget and a year of CIP projects that may be part of a 5 year plan should mean all lights green. Move forward with the projects, they have the blessing of Council. If facts on the ground change between October 1 and some point later in the fiscal year, the item can be addressed. The budget is amended regularly so moving a few more dollars into one project from another or tabling a project and reappropriating funds is always an option. Otherwise, Council is briefed on the progress of the project until it comes before them in the form of a contract (there may also be an approval step of the RFP/RFQ). If a majority of Council do not feel the contract meets their expectations of what they were approving, they can veto the contract. Ideally however, that is worked out between the approval of the budget and then. Especially if the contract comes in or under the budget.

Something I harped on last year during and after the budget process is that Council needs to accept they own the budget. What they approve is theirs. It’s then up to them to make sure the funds are spent accordingly and prudently. How ever things have been done in the past, the Charter is clear. I believe this Council with their decision to hire the Budget Analyst provided for in the Charter took a big step. I’ll also reiterate what I said when I advocated for them hiring for the position—this isn’t about FY25, or even FY26. I think the real fruits of Council understanding and taking ownership of the budget will bear out in FY27. Which is important because our next elections are in 2027. Having better processes and building institutional knowledge within Council will result in a better FY28 process with a new mayor and Council.

My preference would be for Council to craft their own budget taking the Mayor’s as a recommendation. In my perfect world, Council starts having discussions the beginning of Q2 of the fiscal year to start prioritizing for the next year rather than still trying to understand what they approved months prior. I think Council should be proactive with the budget, not reactive to a proposed budget.

[Updated 7/18/24 with timeline of workshops/public hearings and link to budget]