The Budget Process

The budget process is starting now for FY 2013.  Currently, the Mayor’s office is conducting budget hearings in which the Department of Finance meets with all divisions of government to review their proposed budgets.  This year, as last year, the reviews reflect challenging economic times, and so include discussion of possible 5% and 10% reduction scenarios.

The budget hearings are very informative regarding the service delivery aspect of government and its cost.  The administration is moving towards a cost of service model, which more closely aligns the accounting system in the budget with the total real cost of providing service within each division.  Last year, personnel vacancy credits (budgeted positions not filled for some part of the year) were assigned to each division instead of being included as a single item in the overall budget.  This year the cost of insurance is being assigned to each division as well.  The administration also has been meeting with the division directors throughout the year to keep abreast of budgetary issues on an ongoing basis.

Budget hearings will continue through the end of March.  On April 10, 2012, the Mayor will present his proposed budget, which will be posted on the LFUCG website.  You can see the current and previous years’ proposed and adopted budgets here.

After the Mayor’s Proposed Budget, the Council divides into 3 person teams, each with the responsibility to review a certain segment of the budget and report back to the full Council.  The first reading of the budget will take place on June 19th with the second and final reading of the budget before adoption taking place on June 21st.

This year I will again be serving as chair of the team reviewing the budget for the Department of General Services.  General Services includes Facilities and Fleet, and Parks and Recreation.  These divisions have many budgetary issues facing them, including high-visibility issues such as closing and re-purposing pools, and operation of the golf courses. The budget process is one way to see what progress has been made since last year and what plans are being made for the coming year.