FY 2017 BUDGET PROCESS City Council Budget Retreat

FY 2017 BUDGET PROCESS

City Council Budget Retreat Nov/Dec. Public Hearing Property Tax Level Adoption (As needed) Adoption of Tentative Budget Program Managers/ Employee Input Section Managers Review Division Heads Review Finance Review Process City Council Budget Work Session (Three Days) Adoption of Final Budget (After Public Hearing) Review of City Manager's Proposed Budget Div. Heads/EAC Property Tax Levy Adoption City Council Budget Retreat February Budget Team Review – Detailed Budget/Program Review Budget Team/Division Heads/EAC Implementatio n of Budget 2

FY 2017 Budget Calendar Budget Entry due 1/12 � Base, Grants & Capital � Division/Section Checklist CIP Program Updates 1/12 5 year plans available 2/3 February Budget Retreat 2/10 & 11

FY 2017 Budget Calendar (cont. ) Division Review 3/11 2/29 – � Callback 3/11 4/25 – for all divisions Carryforwards due Council Budget Session 4/27 Budget Adoption 6/21 6/7 &

Important Information FY-2017 Budget 1. Base Budget for Sections has been rolled in the Budget System 2. Base Budget targets are being provided to the Sections. This is the dollar amount your submitted Base Budget should tie to when you have completed your modifications. (Due 0112 -2016) 3. Utility Increase Anticipated � Electric – 3% � Water/Sewer – 3 -7% � All others are unknown at this time

Important Information FY-2017 Budget (cont. ) 4. Justifications are REQUIRED for every line item. No exceptions. A minimal explanation may be used for routine purchases (i. e. , copy costs, office supplies, utilities. A full explanation is required for major changes in funding for specific line items. 5. The Interdivisional Service Request (ISR) process has changed considerably last year. 6. Capital Improvement Plans are due 1/12 including O&M estimates – in Excel again this year

Important Information FY-2017 Budget (cont. ) 7. A Division Checklist is required to be completed, signed and sent to your accountant by 01/12/16 for all Sections. (Including Capital Sections) 8. Personnel has not been rolled in the Budget System at this time. 9. Revised Service Levels (RSL) requests are an excel form that are due by 2/18/16 via email to Brandi Suda.

Budget Directions – FY 2017 Still to Early to Know � Many items works for us and against us! Try to reallocate within Base budget to cover any needed increases if possible Council Budget Priorities: � Employee Compensation & Investment � Economic Development Strategies � Infrastructure � Assist Most Vulnerable Populations � Regional Plan Implementation � Transportation

Budget Directions – FY 2017 Revised Service Level (RSL) Requests � Directions will be forthcoming.

Budget Manual and Forms Located on City. Net under: Innoprise/Harris Links �Innoprise/Harris COF Online Support Innoprise Documentation Budget Overview/Training/Due-Dates

FY 2017 BUDGET PROCESS

ISR Process for FY-2017 1. 2. 3. All ONG and BASE Facilities work requests (ISR’s) from FY-2016 have been imported into the Budget 2017 Base, along with all narratives. Divisions are responsible for reviewing these rolled work orders, managing the increases expected in labor and materials costs, description, work scope, etc. , within their respective budgets. Divisions/Sections have the obligation to communicate with Facilities/Parks/Streets any major changes in requests or request descriptions within their Division/Section.

ISR Process for FY-2017 (cont. ) 4. 5. 6. Any ISR requests (1 X or ONG) that require funding beyond the Base Budget 2017 target shall be included in the RSL Excel list due February 18, 2016. Finance will run a city-wide report for Facilities/Parks/Streets as a cross-check for major budget changes which affect F/P/S finances and workload projections. The ISR form was discontinued last year. See #4 above.

ISR Process for FY-2017 (cont. ) 7. New programs and capital projects may require account setups in both Naviline and Innoprise. These account setup requests should be conveyed to Brandi Suda and Wanda Noffz, with a cc to the Accountant, Facilities/Parks/Streets and the Division requesting the work. Account number requests are normally the responsibility of the Division/Section.

Budget Directions – FY 2017 It’s going to be a flat budget year � There are many demands for the limited resources. Be frugal. Finance will provide Target Base levels to the Sections. Reallocate within Base budget to cover any needed increases.

Budget Directions – FY 2017 Revised Service Level (RSL) Requests** � Tie to Council Priorities � Other cuts may be needed to fund RSLs (outside or within your division/section) ** these directions could change and further directions may be coming.

Budget Manual and Forms Located on City. Net under: Innoprise/Harris Links �Training: City of Flagstaff Innoprise Financial Training link Under the Budget Overview Header Also at the following link: S: -City of FlagstaffBudget 2017

Common Budget Issues People often forget to print a PDF of their Base Budget before starting to make changes. If mistakes occur, there is then a starting point to go back and research. Budgets are forward projecting estimates. Therefore, use only whole dollars. Do not use cents. With the department input due 01/12/16, it is important to start the input early enough for your directors to review the budget. After that date, the system will be locked.

Common Budget Issues Cont. Justifications for all budget entries are required. � Justifications should start with one of the following: Base: Grant: Why? You might ask. By the time the entire budget is input through all the levels of input, things change. It is very helpful when you review your budget that your 1 X and ONG authorizations are identified. With over 15, 000 lines of data input across the organization, having as much information immediately available becomes extremely important.

Common Budget Issues Cont. When inputting new information on the Justification area of the budget input or in your RSL request, it is important to identify Budget items as “Recurring” or “One-time”. Base items are “recurring”, Grants “one-time”, Capital purchases are usually “one-time”. If you have any question, you can contact your accountant for guidance. Be sure to budget in your Base budget any forecasted retirements (payouts) or significant salary savings (a 1 X expense or Recurring salary savings with under-filling).

Common Budget Issues Cont. It is important that prior to finishing the data input, one last review of the budget is performed to ensure the submitted budget is AT or UNDER the target provided by Finance. Consultants are always considered one-time expenditures (unless your program is one of the exceptions) and must be re-budgeted on an annual basis detailing both the specific project and the amount. (Enter in base only if it is to be funded via your base budget. )

Common Budget Issues Cont. Divisions are required to fill out, electronically sign, and submit to their accountant the “Division Checklist” on or before 01/12/2016. (See Exhibit 3 in the Training Manual).

FY 2017 BUDGET PROCESS GRANTS CAPITAL PROJECTS

PURPOSE OF BUDGETING Team Flagstaff Budgeting supports this vision for all stakeholders, including, but not limited to: � Citizens � Council � Employees � Vendors

Documents and Resources S: - City of FlagstaffBudget 2017 – Training Files & Docs http: //citynet/Innoprise. asp - Main Link http: //www. flagstaff. az. gov/index. aspx? NID=2920 – Your accountant!! Manuals

ENTERING GRANT & CAPITAL BUDGETS SEQUENCE TO USE: 2017 -DIVGRANTS/CAP DEADLINE FOR ENTRY: January 2016 12,

GRANTS ALWAYS INCLUDE IN JUSTIFICATIONS: � Grant name, number, and C of F Project Representative � Granting Type –Fed, Fed thru State, Foundation, etc. ; and Agency, if known � Amount for project: Total cost and grant amount � Required City match, even if none � Funding period Funds often restricted to use stipulated in grant doc � Cannot reallocate outside of those terms � If unsure, ALWAYS check with grants manager

GRANT JUSTIFICATION – EXAMPLE Project description: Snow play park and associated improvements to, and additions of necessary and related infrastructure. Additional grant funds may be available upon project completion for public outreach and education related to new park, its purposes, and safe enjoyment of the facilities. Total project cost: $5, 000 (Federal direct grant 60%, $3 million; Federal through State 20%, $1 million; City Cash Match 20%, $1 million) Agency grant account number: ASPBG-PR 11 -0049 C of F project number: BB 3095 Funding period: 10/01/2016 – 09/30/18 City’s Grant Project Representative: Jane Doe

CAPTIAL Like Base Budget Items Always give good descriptions Must match 5 and 10 year plans going for review

10 YEAR CAPITAL PLANS LOCATION: S: -City of FlagstaffFY 2017 Capital Programming DUE DATE: January 12, 2016 PURPOSE: Planning, prioritizing, and budgeting OPERATING & MAINTENANCE (O & M)

CARRYFORWARDS DUE APRIL 25, 2016 PLAN AHEAD ELIGIBLE BUDGET ITEMS – Not everything allowed to Carryforward, typically only capital project related items WHAT HAPPENS IF MISSED AND EFFECT ON FOLLOWING FISCAL YEAR

HANDS ON REQUESTS FOR ASSISTANCE QUESTIONS THANK YOU!!