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Agenda Item Summary |
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Meeting Date: July 15, 2013 |
Commission, Board or Committee: na |
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Staff Contact: Sam Kooiker, Mayor |
PW Committee or L&F Committee: na |
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Petitioner: |
City Council Hearing: 7/15/13 |
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Location: City Council Chambers |
City Council 2nd Reading: na |
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Agenda Title: |
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Mayor’s 2014 Budget Presentation |
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Summary: |
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The proposed 2014 Budget is balanced without spending into the reserves and does not include the allowable property tax increase of 2.1% (approximately $294,000) for 2014. Our economy is growing. Residential, Commercial and Industrial permit activity is up nicely, and we are seeing a growing economy – from existing businesses expanding and new businesses coming to town. It’s a great time to be part of Rapid City.
Our growing revenues, including property tax growth, and cash balances have allowed us to balance the budget and provide for our growing City’s needs without increasing property taxes or dipping into the 15% reserves. Overall, the budget is up by 10.74% over 2013 -- from $137.8 million for 2013 to $152.6 million in 2014. In comparison, 2011’s overall budget was $159.4 million. The primary reason for the growth in the budget for 2014 is mainly due to capital expenditures and investment in our City’s aging infrastructure.
When the Capital Outlay is removed, the total 2014 budget increases by 4.5% rather than 10.74%. Starting in 2013, the City utilized the Performance Based Budgeting philosophy – known in the public sector as Budgeting for Outcomes (BFO). This is a budgeting philosophy that begins with community priorities, focuses on value of services, encourages new ideas, innovations, cooperation and improvement and works to achieve the best results to match the community priorities.
During the budget development process each City Council member was asked their priorities. Effort was made to include as many of these priorities as possible. This list is included here for your review.
Previous budgets were hundreds of pages long, and included virtually no vital information other than row after row of expenditures. In contrast, the 2013 and 2014 budgets are condensed in size, and include key measurements and data to facilitate sound decision making.
Compare the new process to the instrument panel for an airplane. The machinery is mostly the same (Note: all the rows and rows of numbers are still available.) However, the BFO process allows us to gauge our altitude, monitor progress and to facilitate appropriate changes. The result is a more transparent and accountable budget for our community. |
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Funding Source & Fiscal Impact (if applicable): |
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Recommendation: |
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Action: Notes: |
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Options: |
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Tentative Dates for Budget hearings July 30 and 31, August 6, 12, 14 and 27. First reading recommended to be approved by August 19; Second Reading by Sept 3. Deadline for the Levy to be certified and to the County Auditor is October 1. |
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Attachments & Links: |
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Mayor's Memo regarding Council Contingency/Compass Committee budget |
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No. LF071013-14 – Acknowledge Annual Reports to Council per Rapid City Municipal Code 2.40.080
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