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Fairview staff recommends returning to annual budget as council readies transition
Summary
City staff told the Fairview City Council the existing software and staffing strains make the current biennial budget difficult to administer and recommended reverting to an annual budget to give the new city manager and a to-be-hired finance director more frequent oversight.
City staff told the Fairview City Council on Dec. 18 that operating under a biennial budget has proved administratively difficult and recommended the city return to an annual budget for the next cycle.
The presenter said the finance software in use is not ideally configured for a two-year budget and that the city will need to train staff or create additional report-writing processes to accommodate a biennial approach. With a new city manager scheduled to arrive and the city actively recruiting a finance director, staff argued an annual budget would allow “more eyes” on the books and more frequent opportunities to make adjustments.
Several councilors agreed. Multiple members said they prefer an annual cycle because it provides timelier oversight and simplifies the audit and review processes while the finance team and audits are being brought up to date.
Councilors also discussed the status of outstanding audits. Staff reported that auditors have the working papers for fiscal years 2022–23 largely complete and that the audit for fiscal year 2021 has the necessary working papers already provided; an audit-committee review and an exit presentation are expected as the auditors complete their work.
No formal ordinance or resolution to change the budgeting cadence was adopted at the meeting; councilors said they would revisit the decision as part of the next budget-cycle planning and in coordination with the incoming city manager.
