MEMORANDUM 04-32

LONG RANGE FISCAL PLAN

Draft Schedule

Third Draft

DATE: February 18, 2004

TO: Mayor Cushing / Homer City Council

The draft planning schedule contained in this memo is reorganized to reflect the recommendations of the Council that were voiced at the last meeting. The primary change is that the work sessions are on the Monday’s of Council meetings instead of on Saturdays.

This schedule anticipates two- week intervals between work sessions, 3 all day, 6 hour work sessions, and 1 half day work session. Under this schedule, the planning process will be completed at the end of April instead of the end of June.

Monday, Feb. 23, All Day Session / Parts of Tasks 1 and 2.

9 AM to 12 PM / General Fund

• Overview of city services / funding levels / existing unfunded needs
• Projections for future operational needs
• Projections for future capital needs
• Overview of current revenue sources
• Projected revenues at current tax rates and fee schedules

1 PM to 4 PM / Port and Harbor Fund

• Overview of services, funding, existing needs
• Projections for future operational and capital needs
• Review of current revenue sources
• Projected revenues at current tax and fee rates

Monday March 8, FACILITATED MEETING, All Day Session / Remainder of Tasks 1 and 2.

9 AM to 12 PM / General Fund

• Define / identify public demand for city services
• Special topics / capital funding, depreciation, etc.
• Prioritize city services and expenditures
• Identify new revenue options
• Prioritize revenue options
• Special topics / bonding for capital projects, tax increases tied to specific projects and uses, investment policy, GF fund balance policy

1 PM to 4 PM / Port and Harbor Fund

• Define / identify demand for port and harbor services
• Special topics
• Prioritize port and harbor services
• Identify new revenue options
• Prioritize revenue options

Monday March 22, FACILITATED MEETING, All Day Session, Task 3:

9 AM to 12 PM / General Fund

• Compare projected expenditures with projected revenues
• Identify / quantify projected fiscal gap
• Identify glide path to balanced budget / focus on both new revenues and expenditure reductions using priorities established in Tasks 1 and 2
• Identify a preferred level of services and expenditures (operations and capital) and propose a tax and fee structure to meet that need.

1 PM to 4 PM / Port and Harbor Fund

• Compare projected expenses with projected revenues
• Identify / quantify projected fiscal gap
• Identify glide path to balanced budget
• Identify preferred level of services and draft tax and fee structure necessary to meet the need.

Based upon the results of this meeting, the staff will put together a Draft 10 Year Fiscal Policy Plan for Public Review. Circulate draft widely.

Monday April 12, Half Day Meeting, FACILITATED, Task 4, Engage the Public

9 AM to 12 PM: Town Hall Style Open Meeting: A facilitated meeting to present the elements of the draft fiscal plan, take public comments, and coordinated a discussion and exchange of ideas.

At the same time during this period, the staff will use a variety of planning tools identified in the first memo to engage the public and solicit comments. Council may choose to hold formal public hearings at regular meetings in April. Staff will compile and organize public Comments.

TASK 5: Adopt a 10 Year Fiscal Policy Plan by Resolution at April 26^th regular meeting.