City Council Agenda and Packet 2020 07 23 SP

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LLityo L 4- CITY COUNCIL COMMUNICATION Louisville AGENDA ITEM 2A COLORADO - SINCE 1878 SUBJECT: 2021-2022 BIENNIAL BUDGET DEVELOPMENT PROCESS AND FINANCIAL POLICIES DATE: JULY 23, 2020 PRESENTED BY: HEATHER BALSER, CITY MANAGER KEVIN WATSON, FINANCE DIRECTOR BUDGET DEVELOPMENT PROCESS The purpose of this agenda item is to briefly review the 2021-2022 biennial budget development process. The process was originally designed to be nearly identical with past biennial budgets, but due to staff shortages, the COVID-19 pandemic, and changes to the independent financial audit process, there have been many changes to what was originally planned. Attached is a current version of the detailed budget calendar, which was first presented to the Finance Committee in December 2019. As stated, there have been a lot of process changes since then and staff has not always been able to meet all the prescribed dates. However, this document provides an example of the detailed planning that goes into the budget process and the interrelationship between the carryforward budget amendment, the 2021-2026 Capital Improvements Plan, and 2021-2022 Biennial Operating & Capital Budget. To spread out the budget workload for staff, the capital budget request process is designed as a completely separate process from the operational budget request process. The capital budget request process occurs first, followed by the operational budget request process. The following is a high-level summary of the current budget development process. February - March Departments meet with their advisory boards and other stakeholders and develop requested capital projects for 2021 through 2026. March - April Departments prepare requests for carry forward budget amendment, including requests for new projects and justification narratives. May City Manager reviews all requests for capital projects and develops a 2021-2026 Capital Improvements Plan. CITY COUNCIL COMMUNICATION K