LAGUNA HILLS : City OKs Switch to 2-Year Budget Cycle

City staff will now calculate finances on a two-year budget instead of using the traditional one-year approach, the City Council decided this week.

The new method will provide a long-range view of finance management and project planning during a time of fiscal uncertainty, said City Manager Bruce Channing, who recommended the change.

“I think as the belt-tightening times continue for all levels of government that we should extend financial planning further into the future,” Channing said.

Channing also told council members Tuesday that the two-year system would save 25 weeks of staff time each year because the budget review process would be done once a year instead of every six months. Monthly updates would still be provided and council members could request the more intensive review process at any time, Channing said.

But the two dissenting council members, Randal J. Bressette and Melody Carruth, advocated staying on the 12-month cycle so that the budget would be reviewed more frequently. With too much time between mandatory reviews, the city might respond too slowly to changing financial climates, Bressette said.

“Although the staff recommendation has merit, I’m very apprehensive about certain aspects,” said Bressette, adding that the council had too little time to examine the plan or its ramifications.

Mayor L. Allan Songstad Jr. said further review of the proposal would handicap preparation of the budget, which he said needs to be begun soon so the 24-month budget will coincide with council member terms.

Songstad encouraged the switch to the two-year budget because it would promote a lengthier perspective in the young city’s planning, and it could lead to savings by allowing two-year contracts with some city contractors. He also reminded council members that they could adopt just one year of the two-year budget if they are unhappy with the final draft.