Calabasas : Council May Switch to 2- Year Budgets

Calabasas officials say they are considering a switch from an annual budget to a two-year budget to allow for more long-range planning.

The City Council will vote on the proposal at its March 27 budget strategy session, City Manager Charles Cate said Friday. The measure, he said, would take effect in fiscal 1996-97, which begins in July.

Councilman Bob Hill said he eventually would like to see an even longer budget planning range, up to five years at a stretch, to give the city more flexibility in preparing for future fluctuation in revenues.

For example, he said, take sales-tax revenues from automobile dealers, which fluctuate year to year. Automobile sales are brisk now, he said, but they are bound to decrease eventually.

Westlake Village has benefited from two-year budgets, said City Manager Ray Taylor, who recommended the switch from an annual budget when he came to work for the city three years ago.

It helped the Westlake Village forecast and adjust for a gradual decrease in sales-tax revenues, he said.

“I am sure we would not have a solid general fund reserves today without having made some very critical budget decisions three years ago,” Taylor said.

And, he figures, it saves considerable staff time in preparing budgets, while allowing for more continuity over time.

But he cautioned that cities should be careful about the data they use to make forecasts.

“Whether it’s a single year or a multiyear budget, it’s only as good as the data used,” he said.