602, Biennial Budget ProcessCITY OF YELM
RESOLUTION NUMBER 602
WHEREAS, in 2018 the Mayor and City of Yelm staff proposed and the City Council supported
transitioning from an annual budget to a biennial budget in order to increase predictability
and promote longer term planning; and
WHEREAS, the City of Yelm now follows a biennial budget with the majority of the budgeting
process taking place in even years; and
WHEREAS, the Yelm Finance Committee developed a proposed budget calendar to continue
providing predictability and planning for future budgets, with an additional emphasis on
establishing City Council retreats to establish priorities and surveys to solicit feedback from
the community to inform Council decision making on the budget process.
Now, THEREFORE, BE IT RESOLVED by the Yelm City Council that the following budget process be
adopted.
The budget will be routinely monitored using year to date actual revenue and expenditures
in March, July, and November of every year. Projections through year end will be reviewed by
Council and amendments prepared accordingly. The following budget process and schedule
have been adapted for the City of Yelm based on MRSC Budget Preparations Guidance and
Washington State Budget Law for biennial budgets, which can be found in RCW 35.34.120.
State law requires that the first year of a biennial budget be an odd numbered year.
Therefore, the development of the future budget occurs in even years. The following are key
steps the City of Yelm takes to prepare and update the biennial budget.
January - even year
1. The City Council convenes a strategic planning retreat to:
a. Determine the policy priorities and initiatives Council will develop and
work on; based on existing community goals.
b. Establish focus areas for a community survey to be conducted every
other year to provide input about citizen priorities and insight on
significant community issues to be used in developing budget
priorities.
March/April - even year
2. The Finance Committee meets to review budget and financial policies.
June - even year
3. The City Council convenes a Study Session or Council Retreat to review citizen
feedback from the completed community survey. Based on this information
the Council makes a recommendation to the Mayor on budget priorities
focused toward community goals.
July - even year
4. The designated budget officer for the City of Yelm is the Finance Director. The
budget officer makes the "Official Budget Call" in a letter to all department
directors requesting "Basic Budget" revenue and expenditure estimates for
upcoming biennium maintaining the current service level. The statutory
deadline for the Official Budget Call is on or before the first Monday in
September.
5. Basic Budget estimates are due from department directors within 14 days.
6. The Finance Director begins preparing the budget document and develops
general purpose revenue estimates consisting of tax, state shared revenue,
intergovernmental service revenue, and other miscellaneous revenue
sources.
7. The Finance Director receives, reviews and incorporates department
estimates into the budget document.
August - even year
8. The Finance Director presents the Preliminary Basic Budget document to the
Mayor and City Administrator providing an opportunity to make modifications,
revisions, or additions.
9. The Finance Director and City Administrator then meet with each department
to review their basic budget. The statutory deadline is on or before the first
business day of October.
September - even year
10. Department directors submit additional funding requests or "Service
Packages" for new positions, equipment, and projects which are over and
above their basic budgets. The Finance Director updates the budget
document to show the impact of Service Package requests and outcomes of
recent union contract negations. In years when funding is limited,
departments may be asked to submit proposed expenditure reductions.
11. Dates for the Public Hearing on Revenue and Ad Valorem (Property) Tax, the
Preliminary Budget Hearing, and the Final Budget Hearing are set. Publication
notices are prepared and publication dates on are scheduled.
12. The Mayor and City Administrator meet with each department to review the
Preliminary Budget.
13. A series of budget study sessions are planned for the Council to review and
make recommendations to the Mayor's Proposed Budget.
14. The Mayor, City Administrator, and Finance Director then brief the Finance
Committee on the Preliminary Budget proposed.
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15. The Mayor and City Administrator present the first draft of the Preliminary
Budget to the Council. Feedback from the Council is received and any
revisions are made. The statutory deadline is the first Monday in October.
October - even year
16. The revised budget document is officially filed with the Finance Director and is
now considered to be the "Recommended Final Budget." The statutory
deadline is at least 60 days before the beginning of the next fiscal year.
17. The Finance Department publishes the Recommended Final Budget, making it
available to the public.
18. The Mayor and City Administrator present and officially file the Recommended
Final Budget and Mayor's Budget Message with the Council. The statutory
deadline is at least 60 days before the beginning of the next fiscal year
19. The City holds the first of three public hearings to gather citizen input on
proposed revenue sources for the coming biennium, including any possible
increases in property taxes.
November - even year
20. The City holds the second of three public hearings, the Preliminary Hearing, to
gather citizen input on the Recommended Final Budget and Mayor's Budget
Message.
21. The Ad Valorem Tax Ordnance is adopted for the upcoming year and filed with
the county assessor no later November 30� per statutory requirements. If
filed after the deadline the levy must remain at the prior year's level and may
not be increased.
22. The City holds the third and Final Budget Hearing to gather citizen input on the
Recommended Final Budget and Mayor's Budget Message as well as review
any changes made by the City Council during budget deliberations.
December - even year
23. The City Council adopts the Recommended Final Budget and Mayor's Budget
Message for the upcoming biennium by ordinance via a simple majority of the
members present. Appropriations are approved by the City Council at the
individual fund level.
24. Immediately following the adoption of the budget the Finance Director
submits a copy MRSC and the State Auditor's Office. The statutory deadline is
December 31n.
25. The Finance Department publishes the Adopted City of Yelm Biennial Budget
and distributes the document to the City Council, department managers, and
makes copies available to the public.
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January - odd year
1. The City Council convenes a strategic planning retreat to ildentify and
establish performance metrics on budgeted goals and key projects the
Council would like updates on throughout the upcoming year during routine
budget reviews, i.e. were project deadlines met? Did projects remain within
budget? Did projects meet or exceed City needs, in accordance with the
Comprehensive Plan or other adopted long-range guiding documents?
In odd years the following key steps are taken by the City of Yelm to ensure year two of the
biennial budget remains viable.
September - odd year
2. Dates for the Public Hearing on Ad Valorem (Property) Tax and Mid -Biennium
Budget Adjustment are set. Publication notices are prepared and publication
dates on are scheduled.
3. Change requests for new "Service Package" funding for the second year of the
biennium are submitted by department directors in writing to the Finance
Director and City Administrator.
October - odd year
4. If approved, requests are consolidated in an ordinance and presented to the
City Council at the regular meeting.
November - odd year
5. The City Council considers for approval the proposed adjustments to a fund's
total appropriation for the biennium. A simple majority of the Council
members present is required for approval.
6. Approved adjustments are incorporated into the existing biennial budget
resulting in a revised appropriation for the current biennium.
The Ad Valorem Tax Ordnance is adopted for the upcoming year and filed to
be certified by the county assessor no later the November 30th per statutory
requirements. If filed after the deadline the levy must remain at the prior
year's level and may not be increased.
Approved this w day of October, 2019
groster,Mafor
Attest:
Lori Lucas, City Clerk/HR Manager
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