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HomeMy WebLinkAbout8.3 - 1198 Fiscal Sustainability Task Force Page 1 of 3 STAFF REPORT CITY COUNCIL DATE: November 1, 2016 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Formation of an Ad Hoc Fiscal Sustainability Task Force Prepared by: Jay Baksa, Financial Analyst EXECUTIVE SUMMARY: The City Council will consider formation of an Ad Hoc Fiscal Sustainability Task Force comprised of appointed community members by the Mayor and the City Council. STAFF RECOMMENDATION: Staff recommends that the City Council consider the formation of an Ad Hoc Fiscal Sustainability Task Force and provide related direction to Staff. FINANCIAL IMPACT: The cost to administer the Ad Hoc Fiscal Sustainability Task Force can be accommodated within the Fiscal Year 2016-17 Adopted Budget. DESCRIPTION: Over the past two years, the City Council has reviewed the City’s 10-Year Forecast, most recently with the adoption of the Fiscal Year 2016 -17 Budget. The projections from June 2016 showed a General Fund deficit by Fiscal Year 2020-21 of $0.9 million, growing to $7.4 million by Fiscal Year 2024-25. Since then Staff has finalized year-end numbers for Fiscal Year 2015-16, which included a higher-than-anticipated operating budget surplus. This was primarily due to growth in property tax, sales tax, and development revenues, but also to citywide staffing vacancies and underspending across departments. Though the inclusion of these numbers will likely push the deficit out one or two years, it does not alleviate the structural nature of the deficit – that is, at current service levels and with the incorporation of new facilities and community services, and as the City transitions from a developing city to a maintenance city, ongoing expenditures will outpace ongoing revenues. Page 2 of 3 Over the last year, the City has continued to work on specific action items that support the City Council’s initiative of Fiscal Sustainability. Staff has also been evaluating other tools that agencies have used to proactively address fiscal challenges, and how to best engage and inform the community in the process. One option is the formation of a dedicated committee, or task force, made up of representative community members, that would review the forecast numbers and ultimately produce an advisory report that includes recommendations for future consideration by the City Council. This has been a useful approach for other agencies, and often results in a more transparent, informative budget process. As such, Staff recommends that the City Council consider the formation of an Ad Hoc Fiscal Sustainability Task Force, with the following components: Task Force Goals To educate the public and foster discussion on the City of Dublin’s current and projected financial status. To produce an advisory document with future budget options for the City Council to consider. Structure  Limited term of one year.  Bi-monthly meetings beginning in January 2017.  Final advisory report to be presented to the City Council in January 2018 (tentatively), for consideration of any related budget items to be included in the Fiscal Year 2017-18 Budget. Selection of Task Force Members  Seven Task Force members and two alternates, appointed by the Mayor: − Five members recommended by the City Council (one recommendation from each City Councilmember). − Four members (two regular members and two alternates) recommended by City Staff.  Eligibility offered to any Dublin resident or Dublin business owner.  The City would solicit applications for the Task Force through the City Clerk’s Office, with information provided on the City’s website. Proposed Schedule  November 2, 2016 – Applications posted on City website  November 18, 2016 – Applications due to City Clerk  December 6, 2016 – Appointments made at City Council meeting Staffing and Facilitation  The committee will be supported by Staff from the Administrative Services Department and the City Manager’s Office. Staff from other departments will also present to the Committee a review of their respective departments.  Staff recommends the use of a third party facilitator to guide the meetings. Upon City Council approval of the Task Force concept, Staff will reach out to an appropriate consultant for this service. Page 3 of 3 If the City Council approves the formation of the Task Force an d provides direction on its structure, Staff will post an advertisement and application form on the City website. NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: None.