Moved by Councillor Townsend
WHEREAS each budget preparation for the years 2019 – 2022 have taken no less than 4 elapsed months, and
WHEREAS the process has been for staff to provide an Initial Budget Package as a starting point, and
WHEREAS Council does not provide any direction for the development of the Initial Budget Package, and
WHEREAS the above process does not provide the appropriate Budget starting point, nor does it provide a recommendation from staff on what is mandatory and needed, plus if there’s room, what is optional,
THEREFORE, Council provides the following direction to staff to assist in the preparation of the Initial Budget Package:
1. Council will provide staff with a Target Budget Increase percentage taking into consideration the recent September CPI (Consumer Price Index), in consultation with the CAO and Director of Finance, prior to the start of each year’s Budget Process, at a date mutually agreed upon by Council and the CAO.
2. A report is to be provided to Council, identifying the starting budget for each department, showing the following information (columns?):
- The December 31st projected, non-capital expenditures (prior to any year-end transfers to / from Reserves to account for any expense surplus or funding shortfall.)
- The current (2022) year’s one-time expenditures included in the December 31st non-capital expenditures projection.
- The Initial Non-Capital Budget for each department is calculated as the December 31st projected expenditures (i) minus any one-time expenditures (ii).
- The December 31st projected capital expenditures (prior to any year-end transfers to / from Reserves to account for any expense surplus or funding shortfall.)
- The projected capital expenditures not spent as of December 31st but still required to complete a project, identified by project.
- The Initial Capital Budget for each department is calculated as the December 31st projected expenditures (iv) plus the projected capital expenditures not spent as of December 31st but still required (v).
- The Starting Budget will be the sum of the Initial Non-Capital Budget (iii) and the Initial Capital Budget (vi).
3. Staff will calculate the Target Budget Increase, by multiplying the current (2022) year’s Budget by the Target Budget Increase Percentage.
4. The Target Budget will be the sum of the Starting Budget 2 (vi) and the Target Budget Increase (3).
5. A New Initiative Report will be provided, identifying staff’s recommendation for which new non-capital, one-time and / or new capital initiatives are proposed (mandatory and / or needed). All initiatives that increase the Starting Budget, including inflationary ones, must be included in the New Initiatives Report. A brief, high-level justification for each initiative should accompany the recommendation.
6. The total of the Starting Budget and New Initiatives costs must not exceed the Target Budget (4). However, if the total Starting Budget is less than the Target Budget, then other initiatives may be identified to be included in the New Initiatives Report.
7. A final report is provided, identifying mandatory or needed initiatives, and their cost, not included, because there was insufficient funding. It should also include any initiatives identified, with their cost, as possible future considerations, or additions if Council approved an increase to the Target Budget.