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HomeMy WebLinkAboutI5 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Finance Director Chris Kukulski, City Manager SUBJECT: FY2006-2007 Preliminary Budget Details and Calling for the Budget Hearing. MEETING DATE: June 26, 2006 BACKGROUND: On May 22, 2006, the City Manager’s Recommended Budget for Fiscal Year 2007 was presented to the Commission. The City Manager’s Recommended Budget serves as the “Preliminary Budget”, as referenced in MCA 7-6-4020. The Budget Hearing date is proposed as July 17, 2006, with a continuance to August 21, 2006 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 can not 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 21), 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 or Equipment will be purchased or entered into prior to final budget adoption, except the following projects, which may begin on July 1, 2006: a. $8,000 - Digital Recording Device/Software for meeting minutes (Commission Budget) b. $750,000 - Water Storage Tank Painting (Water Fund Budget) 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, 2006: a. Police Officers (2 FTE’s) b. Firefighter (1 FTE) The complex hiring processes for Police Officers and Firefighters have recently been initiated. Staff would like to fill the above positions as soon as possible. These restrictions are meant to retain maximum flexibility in budget decisions for the Commission prior to final budget adoption. The entire “FY2006-2007 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. RECOMMENDATION: 1. Designate the City Manager’s Recommended Budget, with the above operating restrictions, as the Preliminary Budget for FY2007. 2. Set the Budget Hearing date for July 17, 2006 and direct staff to prepare notice and budget resolutions. FISCAL EFFECTS: The City will follow the City Manager’s Recommended Budget, with the above mentioned restrictions and exceptions, until a final budget is adopted in August 2006. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, _________________________________ ____________________________ Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager Report compiled on June 22, 2006 Attachments: none