Minutes 04/01/2008 - Laserfiche WebLink

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April 1. 2008 New initiatives Budget Stabilization Fund We recommend establishing a Budget Stabilization Fund, which would be separate and distinct from the Undesignated, Unreserved Fund Balance, preserving it at the current 15% of general fund disbursements. The Budget Stabilization Fund would be a mechanism for capturing any unplanned excess revenues above the 15% fund balance level at close of each fiscal year. The fund would earn interest and continue to increase up to 3% of general fund disbursements in any given year. Citizens would not be taxed to build the fund; only excess revenues would be contributed to build this reserve. The Budget Stabilization Fund is a tool by which a balanced budget can be achieved without resorting to tax increases, expenditure reductions, or tapping into fund balance during uncertain economic times. The Page After the FY09 budget is adopted by Council, a high-level summary of the budget will be produced for public consumption, allowing for transparency and easy understanding of our budget. Biennial Budget I Budgeting for Outcomes Planning for implementation of a biennial budget for FY1 0/FY11 will begin this summer. Simultaneously, working toward budgeting for outcomes I performance based budgeting will be in progress. Our focus is to improve how we conduct business as a municipal corporation. Destination Portsmouth From Portsmouth City Council's vision came Destination 2025 - the award winning Comprehensive Plan for the City. This document is Portsmouth's strong vision statement. A vision that directly reflects the values, aspirations and priorities expressed by citizens during an extensive two-year planning process - a vision that has laid the framework for the City's future and the foundation for over $1 billion investment in new development projects throughout the city. However, the text of the vision statement is not the final product. The Plan document itself is not the final product. To be a livable and achievable vision, a real commitment to implementing the plan must be made, for ultimately, the Plan will be judged by its results not its processes. Destination Portsmouth is that commitment to implementing the Plan - to implementing the citizen's vision for the City. Destination Portsmouth is a Series of Adopted Development Strategies, Plans and Initiatives which will implement the 2025 vision by proactively planning for our continued renaissance and completing the ground work necessary to make Portsmouth the Destination of Choice. Financial Policies Comprehensive financial policies are needed. Currently, our policies provide insufficient guidance for appropriate financial planning and management. The CFO is already working with Public Financial Management, the City's Financial Advisors, to develop a cash flowlforecasting model. A revenue forecasting model was developed and used for FY09 budget planning. Additional financial policies will complement these efforts. Greater Regionalism Particularly in this era of a looming national recession, it behooves the cities in Hampton Roads to coordinate, collaborate, and cooperate on issues of a regional nature. Regional participation in developing light rail is a prime example of a tremendous opportunity to multifaceted improvements in the quality of life for our citizens. Exploration into achieving economies of scale through other joint ventures is another priority initiative for City Management during the next fiscal year.