FY24 Budget Process Outline

[Colleen Pate]

Council,
I want to thank the Budget Office for holding FY24 Budget training sessions with our offices. Now that those sessions are complete, I thought I would review the proposed FY24 Budget calendar and set out an outline for a process the Council can follow to accommodate our discussions, assure transparency, and help things run smoothly.

The process will be different than in past years. The City Manager has been listening to Council Members as we have discussed ideas and priorities and attempted to incorporate those thoughts in the base document.This is a by-product of Council doing a good job to make local government work well and efficiently, breaking down barriers between the policy making body and the administrative functions. Our budget work is—and should be--a continuation of the collaborative process.

I’ve included an updated FY24 Budget timeline as an attachment to this message board post (see below).

http://assets.austintexas.gov/austincou ... 140346.pdf

The outline below, as noted, is to help us navigate things and assure transparency both for us and for the public. Like anything, it won’t be perfect and there will be need for some flexibility as we go along. But, the goal is to create a clear path with limited surprises. I have discussed this outline with the budget office to assure it’s workable from that office’s perspective.

Here’s the outline:

Friday, July 14, 2023:

The City Manager will file the draft budget with the City Clerk, and it will be delivered to the Mayor and Council Members.

July 14th will also mark the launch of the Council Budget Questions (CBQs) process. This is a public facing process. The public will see the questions and answers. The Q & A will be a continuous document.

Questions from Council may be submitted to budgetoffice@austintexas.gov.

Wednesday, July 19th, 2023:

We will hold a work session at which the City Manager and his team will present the budget to Mayor and Council. After the Manager and his team complete their full presentation, we will have the opportunity to ask questions.

This is intended to be as much discussion as Council Members want. In other words, we will be able to be briefed by staff on issues of interest. In fact, if you have specific things on which you know you will want to be briefed, please let me or the City Manager know in advance, and we’ll make that work smoothly.

Wednesday, July 26th, 2023:

We will hold a work session focused on the City’s General Fund. The meeting will begin with public comment at 10:00 am. Public comment is not limited to the General Fund, but can be about any aspect of the budget.

Following the public comment, we will have a staff presentation and Council discussion of the General Fund. Again, this is meant to be a session to allow staff briefings (and council questions) on topics of specific interest to members to get complete discussion and understanding.

Tuesday, August 1st, 2023:

We will hold a work session focused on Enterprise Funds. Again, we will have a staff presentation followed by Council discussion, including any briefings and council questions that are desired.

We will conduct a public hearing regarding the maximum tax rate and a public comment period regarding any budget aspect at 3:00 pm.

We will also set the maximum tax rate at this meeting. Please note: Setting the maximum tax rate is a requirement of the state’s Truth in Taxation process in which the city’s governing body publicly declares what maximum property tax rate it will consider for the upcoming budget process (by a vote of the governing body). Historically, the city has set this maximum tax rate at the voter-approval rate—the highest property tax rate the city may adopt without triggering an election.

Thursday, August 3rd, 2023: Tentatively Cancelled

I am tentatively canceling the work session that was on the original calendar for August 3rd. After August 1st, Council will have heard a general presentation on the budget, had answers to CBQs, had two sets of public comments, had a meeting regarding the General Fund and had a meeting regarding Enterprise Funds. Instead of another meeting and, while I’m confident Council Members will have already been considering proposed Budget Amendments or Budget IFCs, I want Council to have some additional time to prepare proposed Budget Amendments and/or Budget IFCs.

However, if we think we will need to use this date for a work session, we can decide that as we get closer.

Monday, August 7th, 2023

I’m requesting that we set a goal of filing all proposed Budget Amendments and Budget IFCs by Monday, August 7th at 6:00 pm.

The goal is to allow for us to all have a feel for potential amendments and IFCs so that there’s more transparency for us and the public, sufficient time to allow staff to prepare fiscal notes for our proposals so that we will be able to determine budget impacts, and increase efficiency. Please see the post about August 10th below. I’m suggesting the filing of proposed amendments and IFCs on the 7th so that we can walk through them on the 10th.

Proposed budget amendments can be filed with Katie Stewart in the Budget Office at katie.stewart@austintexas.gov catie.powers@austintexas.gov.

Proposed budget IFCs can be filed with Catie Powers in the Agenda Office at catie.powers@austintexas.gov.

“Budget Amendments” are items where a Council Member seeks to amend an appropriation in the budget. This could be by increasing it, reducing it or eliminating it. The amendment will need to be drafted like we do amendments in the ordinary course so that it will flow into the body of the main motion (the Budget Ordinance).

“Budget IFCs” are items from a Council Member that address policy that a member wishes to be made as part of the budget process. That includes direction to the City Manager and our professional staff. The procedures we use for IFCs generally will apply. For example, an IFC will need four sponsors.

To assure transparency and openness, Budget Amendments and Budget IFCs need to be in writing. This process will allow each of us to have a good idea of what to expect and not be surprised. It will also be good for the public and staff to know what is being contemplated.

There are forms for both Budget Amendments and Budget IFCs. Please use these forms.

http://assets.austintexas.gov/austincou ... 140443.pdf

Tuesday, August 8th, 2023: Tentatively Cancelled

I am tentatively canceling the work session on the original calendar for August 8th. This is to allow Council Members and staff to review proposed Budget Amendments and Budget IFCs in anticipation of the August 10th work session. This will also allow staff time to prepare fiscal analysis of the proposals.

Thursday, August 10th, 2023:

We will have a work session. The purpose is to have each Council Member publicly lay out any proposed Budget Amendments and/or Budget IFCs. This will allow members to ask questions, provide comments and, in some cases, determine if we have redundant proposals or proposals that could be consolidated. The plan is to also have as many fiscal notes as possible from staff to assist in our analysis and discussion

Wednesday August 16-Friday, August 18th, 2023:

We will vote on the budget. I will call for a motion and second to adopt the budget.

After that, we will take up each proposed Budget Amendment and Budget IFC that has been pre-submitted and discussed. My plan is to take these items up in this order: 1) amendments that generate revenue; 2) revenue neutral amendments; and 3) amendments that require an additional expenditure, beginning with those carrying the highest fiscal notes.

We will then consider Budget IFCs. My plan is to take up Budget IFCs once the budget is adopted since IFCs do not impact the budget numbers but are policy matters.

Adopting the FY24 Budget is one of the most important decisions this Council will make. I hope by outlining the timeline and process, we can work in an efficient and collaborative manner while achieving our shared goal of making the City of Austin a great place to live, work and thrive for all members of our community.

Thank you,
Kirk

Posted on behalf of Mayor Watson