Mar 2 2012

Council May Create New Budget Advisory and Financial Planning Committee

Committee Proposed by Municipal Tax Review Committee-

At its meeting on March 5, 2012, the Piedmont City Council will consider establishing  a Budget Advisory and Financial Planning Committee (BAFPC) and the Committee’s charge. Establishing such a committee was recommended by the 2011 Municipal Tax Review Committee following their conclusion that additional oversight and expertise in Piedmont’s financial matters is needed.

There is no indication in the City Administrator’s report about how capital projects will be jointly considered by both the new BAFPC and the Capital Improvement Program (CIP) Review Committee, which currently has the advisory role for the City Council.  

The use of capital improvement money has been identified as a source of funds to fulfill varying projects, such as sewer improvements, sidewalk maintenance, roadway paving, swimming pool updates, and sports field development.  A prioritization process considering all needs and desires in relation to available funds has yet to be established.

According to the Administrator’s report, “The resolution also sets the number of committee members at five and directs the Mayor, in consultation with the City Council, to appoint the chair of the committee.”  This procedure would be contrary to the normal organization of City committees and commissions whereby the members choose their own Chair.

Review of the annual budget and commitments for City expenditures of $250,000 and over would be novel and provide additional scrutiny of City expenditures.

The committee is expected to be established.   Those interested in sitting on the committee, if formed, must submit an application and be interviewed by the City Council.  Presuming the schedule remains the same as for other applicants to commissions and committees, applications must be provided to the City Clerk by Friday, March 23, and applicants must be present on Thursday,  March 29 for their interview. Dates are subject to change.   Updated information can be obtained by calling John Tulloch, City Clerk, at 510.420.3040. 

For the application form go to  http://www.ci.piedmont.ca.us/?p=1438 after the City Council approves establishment of the BAFPC.

Below is the report from Geoffrey L. Grote, City Administrator
______________________________________________________________________________
RECOMMENDATION
Consider the creation of a Budget Advisory and Financial Planning Committee as well as its duties.
BACKGROUND
At the Council meeting of February 21, 2012, Mayor Chiang indicated that a proposal would be put forth to create a Budget Advisory and Financial Planning Committee in an effort to assist the City Council in its deliberations regarding both the City’s annual budget and Piedmont’s long term financial future.
At the Mayor’s request, staff drew up the attached resolution, which creates the Budget Advisory and Financial Planning Committee, charges the committee with the following work to be completed between April and June of each year:

1.  Review the five year projections contained in the proposed budget and provide comment on whether they provide for the long term sustainable financial future of the City.
2.  Provide a financial review any new program commitments and funding sources in excess of $250,000 in any fiscal year.
3.  Review the proposed additions to and expenditures from the following funds and provide comments on whether the proposals meet the long terms needs and goals of the City.

  • Capital Improvement Program Fund
  • Equipment Replacement Fund
  • Physical Facility Maintenance Fund

The resolution also sets the number of committee members at five and directs the Mayor, in consultation with the City Council, to appoint the chair of the committee. Under the resolution, the committee will terminate on June 30, 2015, unless the Council takes action to continue it.
The proposed resolution approving such a committee is as follows:

Resolution # __________
Establishing a Budget Advisory and Financial Planning Committee
WHEREAS, in these difficult economic times, the City’s budget is under increasing pressure to maintain current levels of service and meet regulatory requirements without additional revenues; and
WHEREAS, it is proper to ensure that tax dollars are raised and spent in a responsible manner; and
WHEREAS, many residents of Piedmont work in the financial industry and the City Council desires to gain additional insight on fiscal planning from their expertise in preparing the City’s annual budget; and
WHEREAS, the City Council’s deliberation on the budget can greatly benefit from a independent, high-level, comprehensive analysis of the City’s budget five year projections, possible additional programs, and funding for long term capital, replacement, and facility funds; and
WHEREAS, the City Council’s consideration of a budget takes place in a compressed timeframe each year, bounded by the presentation of the budget no later than May 15th of each year and its approval in late June;
NOW, THEREFORE, BE IT RESOLVED, that the City Council creates a Budget Advisory and Financial Planning Committee that shall serve in an advisory capacity to the City Council to help review and project the financial needs of the City; and
BE IT FURTHER RESOLVED, that the committee be charged with the following duties to be completed between the preparation of the budget in April and its approval by the City Council in June of each year:
1.  Review the five year projections contained in the proposed budget and provide comment on whether they provide for the long term sustainable financial future of the City.
2.  Provide a financial review any new program commitments and funding sources in excess of $250,000 in any fiscal year.
3.  Review the proposed additions to and expenditures from the following funds and provide comments on whether the proposals meet the long terms needs and goals of the City.

  • Capital Improvement Program Fund
  • Equipment Replacement Fund
  • Physical Facility Maintenance Fund; and

BE IT FURTHER RESOLVED, that the following shall apply to the Committee:
1.  The Committee shall be comprised of five members appointed by the City Council. Due to the compressed timeframe of the work of the committee, the Committee chair shall be appointed by the Mayor, in consultation with the City Council.
2.  The Committee shall comply with the Ralph M. Brown Act (GC §54950 et seq) including, but not limited to notice, agenda posting, and public participation requirements.
3.  Additional areas of study and/or duties shall only be undertaken with the approval of the City Council.
4.  The Committee shall terminate on June 30, 2015 unless the City Council takes action to continue the Committee.
5.  The Committee is an advisory body to the City Council and is not an independent decision-making body. All of its recommendations regarding budgetary matters are subject to discussion and approval of the City Council.

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