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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: FY2008-2009 Preliminary Budget Details and Calling for the Budget
Hearing.
MEETING DATE: June 23, 2008
RECOMMENDATION:
1. Designate the City Manager’s Recommended Budget, with the following operating
restrictions, as the Preliminary Budget for FY2008-2009, and
2. Set the Budget Hearing date for July 21, 2008 and direct staff to prepare notice and budget
resolutions.
BACKGROUND: On May 19, 2008, the City Manager’s (CM) Recommended Budget for
Fiscal Year 2008-2009 was made available to the Commission and the public. On June 16,
2008 the details of that budget were presented during the public meeting. Commissioners made
comments and suggestions, and the public was given an opportunity to comment.
The CM Recommended Budget serves as the “Preliminary Budget”, as referenced in MCA 7-6-
4020. The Budget Hearing date is proposed as July 21, 2008, with a continuance to August 25,
2008 for final adoption.
State property tax timelines prohibit the City from adopting a final budget and tax levy before the
fiscal year begins. Specifically, the property tax levy cannot be established prior to receiving
certified tax values from the Department of Revenue – which will occur in early August.
Between the time the fiscal year begins (July 1) and the final budget is adopted (August 25), the
City Manager’s Recommended Budget will be in effect. However, the following operational
restrictions will be followed by staff:
1. No newly approved Capital Projects, Contracted Services or Equipment will be
purchased or entered into prior to final budget adoption.
2. No newly created positions will be filled prior to final budget adoption, except the
following positions, which may be filled beginning on July 1, 2008:
a. Police Officers (4 FTE’s from Public Safety Levy, “over-hire” directive.)
b. Prosecutor (1 FTE)
These restrictions are meant to retain maximum flexibility in budget decisions for the
Commission prior to final budget adoption.
The entire “FY2008-2009 City Manager’s Recommended Budget” document is available online
at http://www.bozeman.net/finance/budget.aspx. Copies are also available to the public at the
Bozeman Library and City Clerk’s office.
FISCAL EFFECTS: Adopting the CM Recommended Budget as the preliminary budget
allows standard City operations to continue until the Final Budget can be adopted. The City will
follow the CM Recommended Budget, with the above mentioned restrictions and exceptions,
until a final budget is adopted in August 2008.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director Chris Kukulski, City Manager
Report compiled on: June 18, 2008