Spokane Municipal Code

Title 07 Finance

Chapter 07.14 Budget Process

Section 07.14.030 Budget Monitoring and Review

1. The Finance, Treasury and Administration Division shall provide regular, monthly, financial reports including budget-to-actual data for the General Fund and any other key fund(s), as necessary. The reports will be provided to the City Council as soon as reasonably available upon the closing of the period.

1. 1. As part of the regular monthly reports, a summary of the General Fund budgeted revenue and expenditures shall be provided with estimates of beginning and ending fund balance and reserves with presumptions and trends, and, when available, council budget staff outlooks defined in the estimates.

1. 2. In the month following the end of a quarter’s Finance and Administration Committee Meeting, the Management and Budget Department will provide a summary of potential financial or operational issues that may impact the City’s overall financial position, either positively or negatively, based on analysis of actuals relative to the approved budget.

1. 3. In the month following the end of the quarter, the Management and Budget Department will provide proposed special budget ordinances as deemed appropriate based on operational activities, grant or contract awards, financial projections, or other relative information. City Council will determine which proposed special budget ordinances will proceed for the approval process.

2. The Finance, Treasury and Administration Division shall provide a pre-audit year- end financial report for the General Fund, and any other key fund deemed appropriate. The report will include relative fund/reserve balances for the General Fund. The report will be provided to the City Council as soon as reasonable and reliable financial information is available following the close of the fiscal year, but no later than the end of June.

3. Based on analysis of financial activity from the previous fiscal year, as reported in the pre-audit year-end financial report, the Finance, Treasury and Administration Division shall provide:

1. 1. An update to the General Fund Six -Year Forecast based on all known or expected revenues and expenditures. The General Fund Six-Year Forecast will include the current biennium’s budget and updated projections for the subsequent four years and, at council discretion, council budget staff projections for the same periods. The report will be provided to the City Council by the July Finance and Administration Committee meeting.

1. 2. For any department that is in the General Fund or a fund supported by the General Fund, an unfavorable variance report showing deviations of 10% or more (or $2.0 million, whichever is greater) from the estimated year-to-date budget at the dept/fund level, shall be presented to City Council by the Finance Division on or before July 31st of the even-numbered year. The report will include both revenues and expenses and should be accompanied by as much explanatory narrative as possible and, if applicable, a corrective action plan.

1. 3. During even years, at the November Finance and Administration Committee meeting, the Administration will provide a recommendation to the City Council which, via Special Budget Ordinance, resolves any material budget variances. During odd years, material budget variances will be resolved via the mid-biennium modification period identified within SMC 07.01.020.

4. The Finance, Treasury and Administration Division, and other senior administration personnel and cabinet members, shall, upon concurrence of the mayor, make themselves available for budget deliberations with the City Council on a bimonthly basis, or more frequently as mutually agreed with the mayor.  The city council shall establish bimonthly study sessions on the second Thursday of each month, or on the third Thursday if necessary because of a city holiday, for budget presentations and discussions with program managers, cabinet-level department heads, and senior level administrators. The Administration should make other staff members available as necessary, or beneficial to the content of the planned discussion. The bimonthly study sessions shall be held in a location that allows for real-time public viewing of the study session via a live telecast or streaming in the same manner as regular briefing and legislative session of the city council.

5. Concurrent to the joint budget deliberations, the City Council, led by the Finance & Administration Committee Chair and Vice Chair acting in consultation with all council members, shall develop a draft resolution to the administration identifying council budget priorities, to be placed on Finance & Administration Committee agenda as a standing legislative item no later than April of each year, with final action by the City Council to occur no later than the first council meeting in July.

6. The Council Budget Director shall continuously act as a liaison between the City Council and administration throughout the budget development period. The Budget Director’s mission during the budget process is to ensure information sharing, clarification of financial data, and collaboration among and communication to all council members.

Date Passed: Monday, March 31, 2025

Effective Date: Saturday, May 10, 2025

ORD C36641 Section 4