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HomeMy WebLinkAboutIR 9864 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9864 To the Mayor and Members of the City Council March 29, 2016 Page 1 of 3 r� �i �i7 Y *a SUBJECT: OVERVIEW OF THE FISCAL YEAR 2017 BUDGET CALENDAR #qU f 10,?5 This informal report provides an overview of the Fiscal Year 2017 (FY2017) budget adoption calendar and notes the impact of (i) recently approved changes to the Crime Control and Prevention District (CCPD) budget adoption schedule, and (ii) possible changes that are proposed as part of the upcoming City Charter election. Background Through Fiscal Year 2016, the CCPD budget adoption process operated under the "default" rules set out in state law (Chapter 363 of the Texas Local Government Code). Under these rules the CCPD budget process was not synchronized with the City's budget adoption process and required submission of the City's funding application to the CCPD Board no later than mid-May. The CCPD Board was then required to hold its public hearing on the proposed budget and adopt its formal budget in the June-July timeframe, before the City Manager presented the City's budget to the Mayor and Council in early August. In November 2015, the CCPD Board exercised the authority granted to it under Section 363.204 of the Local Government Code to adopt procedures for adopting a budget that differ from those outlined in state law, so long as the rules provide for public hearings. Under the CCPD Board's adopted rule, the CCPD budget process includes the same steps as before, but the timelines are better synchronized to the timelines for adoption of the City's budget. FY2017 Calendar - City and CCPD Budget Adoption The chart below shows key dates in the FY 2017 City and CCPD's budget adoption processes, with items that have changed since last year shown in bold: Date Action August 2 City Manager presents Proposed Five-Year Capital Improvement Program (CIP) at Pre-Council Meeting August 9 City Manager presents Proposed 2017 Operating Budget at Pre-Council Meeting City Council Adopts Funding Application for Submission to CCPD Board Informal Report on Effective and Rollback Tax Rates Informal Report Certifying Appraisal Roll & Certified Collection Rate August 16 City Council 1" Reading of City Budget Appropriation and Tax Ordinances City Council 1 s' Public Hearing on City Budget Appropriation and Tax Ordinances August 17 City Council Budget Work Session August 18 City Council Budget Work Session CCPD Board Meeting - Presentation of Proposed FY2017 CCPD Budget CCPD Board 1S Public Hearing on CCPD Budget ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9864 To the Mayor and Members of the City Council March 29, 2016 Page 2 of 3 �i �i7 Y *a SUBJECT: OVERVIEW OF THE FISCAL YEAR 2017 BUDGET CALENDAR #qrF rn 1075 August 23 City Council 2 Id Public Hearing on Budget Appropriation and Tax Ordinances City Council 1 s' Public Hearing on Proposed Property Tax Rate (If Required) August 25 City Council Budget Work Session (If Necessary) CCPD Board Meeting 2" Public Hearing on CCPD Budget CCPD Board Meeting Anticipated Adoption of FY2017 CCPD Budget August 30 City Council 3`1 Public Hearing on City Budget Appropriation and Tax Ordinances City Council 2`1 Public Hearing on Proposed Property Tax Rate (If Required) September 13 City Council Approves or Rejects Board-Approved CCPD Budget City Council 2`1 Reading of City Budget and Tax Ordinance City Council 4 Public Hearing on City Budget Appropriation and Tax Ordinances City Council Adoption of City Operating and Capital Budgets Potential City Charter Changes The chart above includes public hearings on the City's budget appropriation and tax ordinances at each regular City Council meeting from the first reading through adoption as currently required by the City Charter. However, based on the recommendation of the City Charter Review Task Force, the City Council included the following technical amendment on the ballot for the Special Election to be held May 7, 2016 (Ordinance No. 22081-02-2016): Shall Section 2 of Chapter X of the Fort Worth City Charter be amended to provide for budget hearings, adoption and publication of the budget, appropriation and tax levy ordinance in accordance with State law? If this ballot proposition is approved by voters, the City would look solely to state law for public hearing requirements in adopting its budget, meaning the City Council would hold at least one public hearing on the budget itself, as required by Section 102.006 of the Local Government Code, and hold two public hearings on the proposed tax rate, as required by Section 26.05 of the Tax Code, if the proposed tax rate is higher than either the effective or rollback rate. If the City Charter amendment is approved, the following public hearings on the budget appropriation and tax ordinances that are currently shown on the chart would not be required but could be held if the City Council wishes: ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9864 To the Mayor and Members of the City Council March 29, 2016 Page 3 of 3 �i �i7 Y *a SUBJECT: OVERVIEW OF THE FISCAL YEAR 2017 BUDGET CALENDAR #qtF rn 10,?5 Date Action August 16 City Council Public Hearing on City Budget Appropriation and Tax Ordinances August 23 City Council Public Hearing on City Budget Appropriation and Tax Ordinances September 13* City Council Public Hearing on City Budget Appropriation and Tax Ordinances *Under Section 102.006 of the Local Government Code, if the City is holding only a single hearing on the budget,that hearing must be scheduled for"a date occurring after the 15th day after the date the proposed budget is filed with the municipal clerk but before the date the governing body makes its tax levy." The City's budget will be filed with the City Secretary's Office on August 10, the day after it is presented to City Council. Because August 25 is the 15th day after the filing date, the earliest the budget hearing could be held is August 26. If approved, the amended Charter provision would require that"[t]he budget . . . not be adopted at the same meeting as the public hearing." To meet the requirements of both the Local Government Code and the amended Charter provision, a budget hearing would have to be held on August 30. If you have questions regarding this information, please contact Aaron J. Bovos, Chief Financial Officer. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS