City of Oak Creek

Common Council Report

Meeting Date:  07/18/06

Item No.:        

Recommendation:    Discussion item:  To review and comment on the tentative budget calendar and general guidelines for preparing the 2007 budget.

Background:

Each year at this time, department managers are asked to begin the budget process for the upcoming year.  Included with this Council Report is a tentative 2007 budget calendar along with brief general directions prepared by the finance staff and distributed to the managers.  

Staff has scheduled this topic for Council discussion and comments so that the general direction can be refined and the final executive budget is prepared within the guidelines established by the Council. 

General staff assumptions are:

1.         Departments will budget the wage increase established in the labor agreements as well as related adjustments for FICA etc.

2.         Department managers will budget for the known increase to Wisconsin Retirement System.

3.         Preliminary calculations indicate the health insurance premiums will remain constant.

4.         Departmental operating budgets should target a zero (0%) percent increase for operating accounts.

5.         Those operational lines that cannot be held to a zero percent increase will be noted and fully justified.

6.         Operational lines that have an uncontrollable increase, such as fuel, natural gas, electricity, etc will be budgeted at the estimated amount and not held to a zero percent increase.

7.         All requests for additional personnel will be budgeted and presented separately from the executive budget to allow for specific scrutiny of need and costs.

8.         Total expenditures will be limited to the amount needed to be eligible for the State of Wisconsin Expenditure Restraint Program if possible.

Fiscal Impact:  To be determined.

Respectfully submitted,

Patrick DeGrave

City Administrator