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closePuyallup to use two-year budget
Puyallup joins a growing number of city’s who plan out biennial budgets
Chris Albert
Better long range planning and more efficient use of staff time are two great reasons for going to a biennial budget, said Puyallup City Manager Gary McLean.
“A budget process consumes an enormous amount of time for the public, staff and the elected officials involved,” he said.
Earlier this summer, the city council approved the move from a year-to-year budget to a biennial or two-year budget.
“There are no disadvantages that we can think of,” said Cliff Craig, Puyallup Finance director.
It’s a move many municipalities in the area are going to when they plan their budgets. Last year, Bonney Lake made the move and Sumner will start a two-year budget plan this year.
The move creates a 24 month plan rather than a 12 month one. During the second year of the budget it gives city’s the chance to review what went well and if they are on track for certain projects.
“In a biennial budget year one is the plan, but it’s a 24 month plan,” McLean said. “In year two, all you’re doing is making adjustments.”
By being able to forecast further out it gives a clearer indication of what a project will look like financially in a longer period of time, Craig said.
“Going to a biennial budget helps to smooth those things out,” he said.
It also gives staff, especially the finance department, more time to improve other city objectives, Craig said.
“(A yearly budget) takes a significant amount of effort across all of the departments every year,” he said.
During a two-year budget cycle the off year opens up more time for staff to focus on other issues.
And there are still checks and balances in place to make adjustments as needed during the off year.
The review takes in to account things like the economy, staff workload and fiscal demands.
The budget takes a lot of time to develop, McLean said, and by creating a two year plan it really opens up time for city staff to be working on other issues, like annexation questions or expanded fire and police service.
Some revenue for budgets can vary depending on many variables, such as impact fees. A two-year plan allows money to be collected before spending it rather than the one year turn around in previous budget cycles.
“It should be more transparent that that’s what you’re doing,” McLean said. “It’s not a bad idea to let the plan unfold with checks and balances in the second year.”
To create the budget city staff first go to the city council for guidance in policy decisions and then shape the budget around those answers. The first two-year budget should go before the city council for review and approval sometime in the fall. Instead of the one-year $150 million budget the city uses, it will plan out a two-year $300 million budget, with about a third of it dedicated to the general fund.
It should be a smooth transition from a one-year budget cycle to a two-year cycle, Craig said, because for the past few years departments have made next year projections.
They are rough estimates, but provide a sound platform for developing second year budget forecasts, he said.
“It’ll be a lot easier for us than if we were starting from scratch,” Craig said. “It will relatively easy for us to implement than it would be for some other cities to.”