Should the City of Hillsboro set a budget every two years, rather than annually?
The Hillsboro City Council will consider that financial policy question on Tuesday, August 2 – a full 11 months ahead of the next budget cycle beginning on July 1, 2023.
Advantages of pivoting to a biennial budget – set every two years – include:
- adding time into the budget-setting process for more discussion and planning
- creating greater staffing efficiencies and time savings that would add capacity to provide core services for the community
- dedicating more time to plan for and implement City Council priorities and other major initiatives
Biennium budgeting is becoming more common in Oregon for local governments, and has been standard practice for other organizations such as the cities of Bend, Lake Oswego, Milwaukie, West Linn, Oregon City, and Medford; the Tualatin Valley Water District and Clackamas River Water; as well as the State of Oregon.
The Hillsboro City Council’s consideration comes after several years of staff discussion and research at a time when the City is upgrading its financial system to a newer version needed to continue to provide critical financial processes.
Frequently Asked Questions
How would a biennial budget change the timing of the budget process?
The budget process would be every two years. The budget cycle would begin on July 1 of the 1st fiscal year and end on June 30 of the 2nd fiscal year of the biennium. Budget updates and adjustments may be needed during the 24-month period.
How would the budget be managed and monitored in a two-year cycle?
Budget management and monitoring is ongoing. Tools will be developed to aid City departments in managing to a one-year and biennium budget to ensure they stay on track. The longer planning cycle would continue to allow flexibility in decision-making. Financial projections would be added in the second year for expected growth, then adjusted based on updated financial data.
Would the City Council & Budget Committee’s involvement in the budget be different?
There would not be significant changes to either the City Council or Budget Committee’s roles in the budget process. The Budget Committee would continue to meet annually to review forecasts and receive other financial updates. The City Council and staff would have more time for thoughtful review and discussion of the financial data and budget proposals without the time burden of meeting required deadlines every 12 months.
Original source can be found here.
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