CITY OF SUNNYVALE
City Council Study Session Summary
Overview of the Citywide Budget Process
May 15, 2007
The City Council met in study session at City Hall in the West Conference Room located at 456 West Olive Avenue, Sunnyvale, California on May 15, 2007, at 5:00 P.M., with Vice Mayor Tony Spitaleri presiding.
City Councilmembers Present: Mayor Otto Lee, Vice Mayor Tony Spitaleri, Councilmembers John Howe, Ron Swegles, Melinda Hamilton, Dean J. Chu and Christopher R. Moylan
City Councilmembers Absent: None.
City Staff Present: City Manager Amy Chan, City Attorney David Kahn, Assistant City Manager Robert Walker, Director of Finance Mary Bradley, Director of Public Safety Don Johnson, Director of Public Works Marvin Rose, Director of Parks and Recreation David Lewis, Senior Finance Manager Grace Leung, Revenue Systems Supervisor Tim Kirby, Manager of Business Operations Steve Quick, Senior Management Analyst Pete Gonda, Budget Analyst II Ann Durkes, Budget Analyst I Drew Corbett, Finance Analysts Kurtis Mock and Nick Kurns.
Visitors/Guests Present: Patrick Meyering, member of the public.
Call to Order: 5:05 P.M.
Study Session Summary: City Manager Amy Chan provided an overview of the Study Session, indicating that the main purpose of the meeting was to identify for Council the many and complicated facets of the budget process. The City Manager introduced the Director of Finance, who acknowledged the budget preparation team and began a presentation of the citywide budget process including preparation, review and ongoing monitoring, and an emphasis on the long-term financial planning aspects of Sunnyvale budgeting.
A discussion ensued regarding how the City forecasts and/or adjusts for large swings in revenues and expenditures. Director Bradley clarified that the strategic use of reserves serves to levelize impacts of significant swings and stabilize services and service levels. She further stated that valid assumptions were critical in minimizing the potential negative impacts from such wide swings.
Councilmember Moylan inquired as to whether new proposed fees were reviewed with the criteria for new revenue sources as approved by Council in the Fiscal Sub-Element update. Director Bradley indicated that she would take a look at how the financial policies (relative to new fee revenue) were applied.
Councilmember Chu asked at what point do departmental expenditure issues go to the City Manager and Council for Budget Modifications. Director Bradley replied that the City Council adopted a Budget Appropriations Policy that identifies the specific expenditure thresholds by which budgeted funds can be transferred between programs within a given department. Such transfers are made with either City Manager or Council approval, depending upon the threshold. Director Bradley also remarked that there was a separate process to submit Budget Modifications for City Council approval, and that Budget Office staff processes about 50 per year. The City Manager indicated that she would provide Council with the Budget Appropriations Policy at the Budget Workshop on May 24.
Director Bradley then reviewed the Service Review Process begun in 2005, stating that Council suspended it for FY 2006/2007 due to the budget restructuring. The City Manager remarked that the Council, in effect, conducted a comprehensive service and service level review during the FY 2006/2007 budget adoption process when all the City’s programs were restructured. Councilmember Howe indicated that he would like to have the opportunity to consider the appropriate course of action for conducting service reviews. The City Manager stated that Council will need to make a decision on whether to reinstate the formal process, and would have the opportunity to do so at the May 24 Budget Workshop.
The Vice Mayor opened the Public Hearing at 6:45 P.M. No members of the public commented on the session and the Public Hearing was closed at 6:46 P.M.
Councilmember Moylan inquired as to whether the City Manager and Finance Director were available to review the budget and/or budget process in more detail, and the City Manager indicated that was an option.
Adjournment: 6:50 P.M.
Pete Gonda, Senior Management Analyst
Department of Finance