ORD 2007-13 BUDGET PROCESS & CONTENT VETO
City of Bainbridge Island
OFFICE OF THE MAYOR
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MEMORANDUM
TO:
CC:
City Council
Mary JoBriggs
FROM:
Darlene Kordon
DATE:
July 12, 2007
RE:
Veto Ordinance 2007-13, City of Bainbridge Island Budget Process and Budget
Content
This memorandum transmits my veto of Ordinance 2007-13, debated and adopted at the Special
City Council meeting of July 2, 2007. The motion to approve passed the City Council with a 4-3
vote.
According to RCW 35A.12.130 "every ardinance which passes the council in arder to become valid must
be presented to the mayar; if (s)he approves it, (s)he shall sign it, . but if not, (s)he shall return it with (her)his
written objections to the council and the council shall cause (her)his objections to be entered at large upon the
journal and proceed to a reconsideration thereof."
Two significant changes would have occurred in Chapter 2.82 of the Bainbridge Island Municipal
Code if Ordinance No. 2007-13 were to become effective: commencing in 2008, a biennial budget
process would be established and the growth of operating expenditures would be limited. My
objections to Ordinance No. 2007-13 are with the latter change and not with the former.
However, mayoral veto power does not include section-by-section or line item veto authority;
therefore, I must veto the entire ordinance.
My objections to codifying limitations on growth of operating expenditures in the Preliminary and
Final Budget are as follows:
I have the responsibility and privilege to present to the City Council a preliminary budget
in a balanced form that projects all the needs and expresses the community's priorities.
The preliminary budget should communicate how the City can function efficiently to meet
these needs and provide services to the community. The budget process must be flexible
and able to respond to change and adjust to financial circumstances. Capping what can be
spent as proposed in Ordinance 2007-13 before fully considering the needs and demand
for services from the community and determining the resources necessary to manage these
needs and services is moving in the opposite direction to one I believe a responsible and
responsive city government would chose.
DARLENE KORDONOWY, MAYOR
Phone: (206) 842-2545 Fax: (206) 780-8600
l!la\Or (I.ci ba inbridgc-i 51. \\ a .lIS
City's Web Site: www.ci.bainbridge-isl.wa.us
City 0/ Bainbridge Island
OFFICE OF THE MAYOR
I object to Ordinance 2007,13 redirecting and constraining my response to City Council's
annual priori tie..., by presenting a preliminary budget limiting the resources necessary to
preserve and enhance the quality of life in our community.
City Council set a course of action early last year through the Benchmarking Study to gain
a comprehensive understanding of city service..., and mea.,ure how this city compares to
other similar municipal organizations. Starting in January of this year, City Council and
AdminL.,tration committed to working through the five critical recommendations resulting
from the Study, with a"surances from the consultant team responsible for the Study that
the outcome would be a more efficient and effective organization. I am convinced a leaner
and focused organization would translate to a reduction in operating costs and therefore a
more sustainable financial future for the City.
I object to substituting Ordinance 2007,13 for the hard work and collaboration necessary
to address the five critical recommendations from the Benchmarking Study and to tackle
the systemic problems of the organization.
City Council establL.,hes policies and guidelines annually that provide parameters and
direction to AdminL.,tration a., the preliminary budget is developed and the final budget
adopted. Twenty,nine budget goal., and policies and three resolutions guided the
preparation and adoption of the 2007 budget.
I object to establL.,hing budget policies or guidelines through law a., would occur if
Ordinance 2007,13 wa., approved. Such a law could not be ignored no matter what
circumstance..., or financial conditions might exist in anyone year. A., importantly, to
achieve true success in a budget process, the City Council and AdminL.,tration" must work
collaboratively. Use of the ordinance form for this policy guideline L., inconsistent with
collaborative process.
ThL., veto message will be attached to Ordinance 2007,13 on the August 22, 2007 City Council
agenda and time allotted for dL.,cussion and reconsideration.
DARLENE KOROONOWY, MAYOR
Phone: (206) 842-2545 Fax: (206) 780-8600
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City's Web Site: www.ci.bainbridge-isl.wa.us
ORDINANCE NO. 2007-13
AN ORDINANCE of the City of Bainbridge Island, Washington, relating to the
City Budget Process and Budget Content, Chapter 2.82 of the Bainbridge Island
Municipal Code, amending sections 2.82.010, 2.82.020, 2.82.070, 2.82.080,
2.82.090, 2.82.130, 2.82.140, 2.82.160, 2.82.200 and 2.82.10 of BIMC Chapter
2.82, repealing section 2.82.100 of BIMC Chapter 2.82 and adding section
2.82.220 to the Chapter.
WHEREAS, RCW Chapter 35A.33 establishes that it is the duty and responsibility of the City
Council to adopt annual operating and capital budgets; and
WHEREAS, Ordinance 2002-11 established Section 2.82 of the Bainbridge Island Municipal
Code entitled "City Budget Process"; and
WHEREAS, the City wishes to move to a Biennial Budget Process which is authorized by
RCW Chapter 35A.34.030; and
WHEREAS, the City wishes to limit the growth of operating expenditures on a year after year
basis; now, therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Section 2.82.010 of the Bainbridge Island Municipal Code is hereby
amended as follows:
"2.82.010 Policy.
It is hereby declared to be the policy of the City of Bainbridge Island that
an Annual Budget and Planning Calendar consistent with the provisions of this
Ordinance shall be adopted each year by resolution of the City Council through
2008 and thereafter the Budget and Planning Calendar shall be prepared on a
biennial basis."
Section 2. Section 2.82.020 of the Bainbridge Island Municipal Code is hereby
amended as follows:
"2.82.020 Annual Budget and Planning Calendar.
The City Council shall adopt on or before May 15, 2002, and then
continuing thereafter on or before January 31 Sl of each year commencing in
2003, and through 2008 an Annual Budget and Planning Calendar in the form of
a resolution which shall set out the specific calendar dates for this ordinance as
they may occur for each given year and thereafter on a biennial basis. The City
Council may at any time by a scheduling motion add, delete or move activity
dates for work sessions, business meetings, special meetings, or public hearings
or meetings, originally scheduled in the Annual Budget and Planning Calendar
resolution through 2008 and for the Biennial Budget and Planning Calendar
thereafter. Each approved schedHling motion shall be attached to the annual
cahmdar resolution as an addendHm. Hov:e'/er, in no event shall the annual
resolHtion or any scheduling motion change the sequence of the budget process
events as established by this Act or delete events from the bHdget process."
Section 3. Section 2.82.070 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.82.070 Mid-Year Financial Review.
On or before August pI of each year commencing in 2002, the Finance
Director shall present to the Council a "Mid-Year" financial report, together
with such other additional information or factors as may be needed (such as
recent state, county or federal legislative action), to clearly assess: (a) the
financial condition of the city; (b) the financial status of the current budget year;
(c) what appears to be the financial projections for the next budget year; and (d)
what, if any, substantial impact(s) on revenue and/or expenditures may be
foreseen. "
Section 4. Section 2.82.080 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.82.080 Initial Budget Requests Preliminary Budget.
The Preliminary Budget for the next fiscal year shall be prepared by the Mayor,
and shall be delivered to the City Council, on or before the date established by
resolution of the City Council as provided in RCW 35A.33.050. The department
reqHests '",hieh comprise the preliminary bHdget The increase in overall
operating expenses in the Preliminary Budget over the current fiscal year shall
be limited to a percentage that is equal to or less than the sum of the Seattle
Tacoma CPI for December of the prior vear plus the percentage change in the
Island's population for the 12 months ending that December do not need to be
balanced into one bHdget becaHse they are expressions of variol:ls estimates and
projections of programs and ser'/iee of each department for the next bHdget
yoor. While the increase in overall operating expenses shall be capped at this
percentage, the change over the current year in its components such as salaries,
benefits, or professional services, or in different departments, may be more or
less than this percentage as deemed appropriate by the Mayor. The required
information to be included in each proposed preliminary budget shall be as
follows:
A. The revenue section shall set forth in comparative and tabular
form for each fund:
1. Actual receipts for the last completed fiscal year by each
significant revenue source:
2. Estimated receipts for the current fiscal year by significant
revenue source;
3. Estimated receipts for the ensuing fiscal year~ and the amount
expected from each significant revenue source;
4. Estimated receipt of ad valorem taxes; and
5. The balance for each fund estimated to be available at the close of
the current fiscal year.
B. The expenditure section shall set forth in comparative and tabular
form for each fund and every department operating within each fund:
1. Actual expenditures for the last completed fiscal year;
2. Appropriations for the current fiscal year;
3. Estimated expenditures for the ensuing fiscal year~; and
4. For each proposed full-time or part-time employee, the annual
salary (without benefits) for that employee, together with the
exact personnel classification title of the employee's position, and
any other working title or position designation, if any.
c.
Each department shall submit, as a specific section of the
proposed preliminary budget, a narrative and descriptive
summary of differences and changes between the current year
appropriations and the proposed preliminary budget. Such
summary shall be in a form annually reviewed and approved by
the City Council.
D.
Commencing in 2000.8, the City shall develop performance
measures for all its major programs and will use those measures
in its budget process for 200~ thereafter. "
Section 5.
amended as follows:
Section 2.82.090 of the Bainbridge Island Municipal Code IS hereby
"2.82.090 Review of Budget Hearing & Work Session Dates.
The dates set forth in the Annual Budget and Planning Calendar
resolution through 2008 and for the Biennial Budget and Planning Calendar
thereafter for October through December, should be reviewed by the Council on
or before September 15th to determine if any changes or adjustments are needed
to be made by a scheduling motion, to ensure adequate time for public notice. "
Section 6. Section 2.82.100 of Chapter 2.82 of the Bainbridge Island Municipal
Code is hereby repealed.
Section 7. Section 2.82.130 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.83.130 Public Hearing on Taxes and Revenues.
On a date established by resolution of the City Council, a videotaped
public budget hearing shall be held for the purpose of obtaining public comment
on the revenue sources for the ensuing ~ budget. This hearing shall include
an opportunity for the public to comment on all proposed increases in tax
revenues. Notice of the public hearing shall be published for the public and
media on the dates set forth in the Annual Budget and Planning Calendar
resolution as may be amended. "
Section 8. Section 2.82.140 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.82.140 Public Hearing before the Planning Commission on Capital
Facilities.
On a date established by resolution of the City Council, a public hearing
shall be held by the Planning Commission for the purpose of providing public
comment on the proposed update to the City's capital facilities plan. Notice of
the public hearing shall be published for the public and media on the dates set
forth in the AIlIH:1al Budget and Planning Calendar resolution as may be
amended. The Planning Commission may hold such other public meetings as it
deems proper in order to prepare its recommendations to the City Council. The
recommendations of the Planning Commission regarding the update to the City's
capital facilities plan shall be delivered to the City Council not later than sixty
days following receipt by the Planning Commission of the proposed update to
the capital facilities plan. "
Section 9. Section 2.82.160 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.82.160 N9vember Budget Estimates-Revenue & Expenditures.
On or before the date specified by resolution of the City Council
the Finance Director shall prepare and certify to the City Council the
best available revenue and expenditure estimates for the next budget
year, and estimates of current end-of-year unexpended funds."
Section 10. Section 2.82.200 of the Bainbridge Island Municipal Code IS hereby
amended as follows:
"2.82.200 Final Hearing on the Budget.
There shall be a final public hearing on the proposed budget on or
before a date to be established by resolution of the City Council but
beginning on or before the first Monday in December. Notice of the
public hearing shall be published for the public and media on the dates
set forth in the Annual Budget and Planning Calendar resolution as may
be amended."
Section 11. Section 2.82.210 of the Bainbridge Island Municipal Code is hereby
amended as follows:
"2.82.210 Adoption of the Auual Budget and Capital Facilities Plan
Update.
The amlUal budget and the annual update to the Capital Facilities Plan
shall both be considered for amendment, adoption and other appropriate action
by the City Council on or before a date to be established by resolution of the
City Council."
Section 12. A new Section 2.82.220 is hereby added to Chapter 2.82 of the Bainbridge
Island Municipal Code to read as follows:
"2.82.220 Final Bude:et.
The Final Budget that is adopted by the City Council shall provide for an
increase in overall operating expenses over the current fiscal year that is capped
at a percentage which is equal to or less than the sum of the Seattle Tacoma CPI
for December of the prior year plus the percentage change in the Island's
population for the 12 months ending that December. Although the increase in
overall operating expenses shall be capped at this percentage, the change over
the current year in its components such as salaries, benefits or professional
services, or in different departments, may be more or less than this percentage
as deemed appropriate by the City Council. "
Section 13. This Ordinance shall take effect and be in force five days after its passage,
approval, and publication as required by law.
PASSED by the City Council this 2nd day of July 2007.
APPROVED by the Mayor this 5th day of July 2007.
Darlene Kordonowy, Mayor
ATTEST / A UTHENTICA TE: \."
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FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL:
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.:
May 1, 2007
July 2, 2007
July 11, 2007
July 16, 2007
2007 -13