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HomeMy WebLinkAboutItem 01 Priority Based Budgeting - Council Goals Desired Outcomes AGENDA ITEM SUMMARY Meeting Date: 9/25/2017 Meeting Type: Work Session Staff Contact/Dept.: Bob Duey, Finance Paula Davis, Finance Staff Phone No: 541.726.3740 541.726.3698 Estimated Time: 7 hours S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: PRIORITY BASED BUDGETING – COUNCIL GOALS DESIRED OUTCOMES ACTION REQUESTED: Participate in an extended work session with the City’s consultant to discuss desired short and medium range outcomes within priority based budget planning cycle Provide 6 to 8 short and medium range outcomes for each of the Council long term goals that can be used by staff for program strategy development and long term financial planning. ISSUE STATEMENT: The City is beginning its fourth budget year using the priority based budgeting (PPB) methodology which assists in the allocation of resources to services and programs in advancing community and Council goals. The methodology was expanded to include the strategic plan, long-term fiscal health and performance measures. At the March 13th work session Council asked to participate in an update of the priority based budget program that would identify potential short-term and medium-range desired outcomes for Council goals as part of the City of Springfield’s PBB planning cycle. ATTACHMENTS: 1. Council Briefing Memorandum 2.PBB Outcome Presentation3. FY15 Priority Based Budgeting Result Maps 4.FY19 Staff Priority Based Budgeting Result Maps DISCUSSION/ FINANCIAL IMPACT: See Council Briefing Memorandum Attachment 1, Page 1 of 3 M E M O R A N D U M City of Springfield Date: 9/25/2017 To: Gino Grimaldi COUNCIL From: Bob Duey, Finance Director BRIEFING Subject: Priority Based Budgeting - Outcomes MEMORANDUM ISSUE STATEMENT: The City is beginning its fourth budget year using the priority based budgeting (PPB) methodology which assists in the allocation of resources to services and programs in advancing community and Council goals. The methodology was expanded to include the strategic plan, long-term fiscal health and performance measures. At the March 13th work session Council asked to participate in an update of the priority based budget program that would identify potential short-term and medium-range desired outcomes for Council goals as part of the City of Springfield’s PBB planning cycle. COUNCIL GOALS/ MANDATE: Provide Financially Responsible and Innovative Government Services BACKGROUND: For the past three years, the City’s executive team has been implementing a managing for outcomes approach to its budgeting efforts by adopting a specific program identified as priority based budgeting. The purpose has been to draw a closer link between strategic planning, long-range financial planning, performance measures, budgeting and evaluations. PBB also links resources to objectives at the beginning of the process so that the primary focus is on outcomes rather than organization structure. To continue this effort for fiscal year 2018-2019 the priority based budgeting process will include aspects of the prior City of Springfield’s strategic plan. The prior strategic planning process began with the Council adoption of its long-range goals and identifies effectiveness targets that are to be measured quarterly as marks of progress towards the goal. This process’ intent was to use a managing for outcomes approach to identifying key objectives and measuring changes in outcome and/or output. The consolidation of the two programs is intended to complete a year-round planning cycle that contains all of the elements of both process without duplicating efforts, as described in the PBB outcome presentation (Attachment 2). The PBB Planning cycle (page 3 of attachment 2) will encourage information to be shared between Council and staff, in such a way, to have a more complete picture of how resources should be allocated to meet Council goals and objectives. For the updated City of Springfield’s PBB planning cycle, the Council has previously provided to staff a Mission Statement for the City (Attachment 2 Page 4) and a set of 6 Council Goals (Attachment 2 Page 5). Staff has identified programs that are intended to address each of the Council goals and is beginning to develop performance measures to identify progress to towards these goals. The element of the planning cycle that may be missing in this process is clear understanding of what are the more specific outcomes or objectives by Council members for each long-term goal. For example if more resources are put into a program to better achieve a Council goal, what are the most important immediate objectives of the Council that are trying to be achieved. Attachment 1, Page 2 of 3 One of the reasons that this step of identifying desired outcomes is becoming more important is the effort in the current budget and long range financial planning initiative to bring stability to the City’s financial future. One of the definitions of financial stability is to be “A government is financially healthy if it can deliver the services its citizens expect, with the resources its citizens provide, now and in the future.” With many internal and external pressures on the City’s finances, with the current PERS situation being one of those, there is need to identify and closely align the services its citizens expect with the resources its citizens provide. Council being able to provide this more immediate link of 1 to 3 year of desired outcomes for their long term goals will greatly assist in staff’s recommendation for resource allocation. DISCUSSION: To seamlessly integrate these processes into a single practice Council is being asked to identify specific outcomes for each Council goal, essentially updating our current PBB Result Maps (Attachment 3). During the March 13th, 2017 work session Council directed staff to coordinate an all-day work session to facilitate this effort. To lead Council discussion, City has contracted with Leslie E. Roche, CEO from Transformative Systems Solutions, L.L.C. Transformative System Solutions, L.L.C. provides executive coaching, strategic planning, training, and strategic consulting services. Ms Roche is an accomplished, results-driven organizational operations and technology executive with a proven success record in leading, direction and developing long-range business goals. Her customers include government, industry and healthcare. Additionally as requested by Council, staff participated in an all-day meeting to draft outcomes for Council review. On September 19th, 2017, Ms Roche facilitated the conversation and conducted several excises that resulted in the updated FY19 Staff PBB Result maps (Attachment 4). These results are being provided for Council use either before, during or after their own exercise. Council will be asked to participate in two exercises to develop their own outcome/result maps: cross of beliefs and the outcome worksheet. The cross of beliefs exercise is intended to start the conversation about what Council sees as the future state of the City of Springfield. The outcomes worksheet exercise will allow Council to develop their outcomes which will be used to develop the FY19 Results maps. The outcomes in this case could be described as measurable progress towards the achievement of a goal. For most Council goals, it is not a single element that signifies final achievement nor is it a single point in time, but could answer the questions: What does the Council goal mean to you? What would it look like to achieve this goal? What are the measurable results of the goal implementation? The answers may be different for different people and sharing these thoughts could ultimately lead to an agreed upon list of short-term and medium-range measurable objectives. Each of these could have performance measurements developed around them and ultimately be included in the allocation of resources during the budget conversations. Over the next couple of weeks, Ms. Roche will assist City staff in building the FY19 PBB Result maps. These results maps will then be used to set short term priorities for the next two years and ultimately be included in the allocation of resources during the budget conversations. City staff will then develop performance measures for each outcome that would identify progress to towards Council goals. At the January 22nd, 2018 work session staff will present a mid-year budget workshop to outline the steps to balancing the FY19 budget. Attachment 1, Page 3 of 3 RECOMMENDED ACTION: Complete the Cross of Beliefs Future State exercise. Complete the Current State exercise for each of the Council’s 6 goals Provide 30 to 50 short-term and medium-range Desired Outcomes that are in response to the 6 Council goals. Long-Term Fiscal Health •Updated in 2016 as part of PBB •Policies Adopted by Council for Reserves, Revenue, Accounting & Auditing •Purpose: Minimize the cost of government and reduce financial risk Maintain appropriate financial capacity for present and future needs Ensure the legal use of financial resources through internal controls PBB Planning Cycle Strategic Plan •Last updated in 2013 •Purpose: Aligns performance measures to Council goals Creates accountability for results, efficiency and innovation Priority Based Budgeting •Implemented in 2015 •Purpose: Evaluates programs against Council goals and attributes Allows for strategic decision making regarding funding for services and/or changes to service levels for current programs Attachment 2, Page 1 of 8 PBB Planning Cycle Priority Based Budgeting, the philosophy of PBB is that resources should be allocated according to how effectively a program or service achieves the goals and objectives that are of greatest value to the community. Rewards Enhances the public’s understanding of how revenues are spent Emphasizes accountability, innovation, transparency and partnerships Answers the question “What’s the best way to produce the most value with the dollars we have?” Smart spending not smart cutting Attachment 2, Page 2 of 8 PBB Planning Cycle PBB Planning Cycle Goals Mission Desired Outcomes Program StrategiesMeasures & Target Budget Report Results 1-3 Years Annually Nov-Dec Annually Jan-May Annually Jun-Jul 3-5 Years Annually Mar-May 1.Mission 2. Goals 3. Desired Outcomes 4. Programs and Strategies 5. Budget 6. Measures and Targets 7. Results 10+ years Attachment 2, Page 3 of 8 Mission Statement Broad but clear statement of purpose for entire organization Help in deciding what we should do and should not be doing Goals, strategies, programs and activities should logically cascade from mission statement. Mission To make the City of Springfield a desirable and preferred place to live and work. PBB Planning Cycle Goals Mission Desired Outcomes Program StrategiesMeasures & Target Budget Report Results 1-3 Years Annually Nov-Dec Annually Jan-May Annually Jun-Jul 3-5 Years Annually Mar-May Attachment 2, Page 4 of 8 Goal is a specific target, an end result or something to be desired. It is a major step in achieving the vision of the organization. PBB Planning Cycle Goals Mission Desired Outcomes Program StrategiesMeasures & Target Budget Report Results 1-3 Years Annually Nov-Dec Annually Jan-May Annually Jun-Jul 3-5 Years Annually Mar-May Attachment 2, Page 5 of 8 Desired Outcomes the way in which things turn out; final product. Establish priorities which align to municipal goals and their impact on the budget Lay out how much of what will be accomplished by when Are clear and measurable Answer the questions “What does our community gain?” and “What results matter most to citizens?” PBB Planning Cycle Goals Mission Desired Outcomes Program StrategiesMeasures & Target Budget Report Results 1-3 Years Annually Nov-Dec Annually Jan-May Annually Jun-Jul 3-5 Years Annually Mar-May Strengthen Public Safety by Leveraging Partnerships and Resources (a) SAFE COMMUNITY Fosters a feeling of personal safety and security throughout the community by establishing a visible, responsive public safety presence that proactively provides for prevention, intervention and safety education Encourages and sustains a thriving environment that provides for the day-to-day health, education, and socio- economic well-being of the community; actively partnering with others to ensure basic needs are met and individual differences are accepted Promotes and sustains a well- planned and properly regulated community that is clean, attractive, well maintained and environmentally healthy Provides a timely, effective, well- planned response to and adequately prepares the community for all emergencies, threats, flooding and other natural disasters Builds a well-informed, involved, engaged and trusting community that shares in the responsibility of creating a safe place to live and work Protects the community by promptly responding to all emergencies and calls for service, justly enforcing the law, administering equitable justice and incarcerating those who commit crimes Provides a public transportation network that is well maintained, well-lit, accessible, and enhances traffic flow and mobility for vehicles, cyclists and pedestrians Attachment 2, Page 6 of 8 PBB Planning Cycle Town of Parker, CO ~ Goal “Enhance Economic Vitality” Create an environment to help small business thrive through strategic partnerships, programs and educational opportunities. Stimulate economic growth using well-planned development, community revitalization and robust public infrastructure. City of Fayetteville, NC~ Goal “Safe and Secure Community” Reduce the incidence and severity of crime and improve public perception of safety through community engagement and collaboration in crime and safety initiative. To ensure traffic safety by striving to reduce preventable vehicle accidents and traffic related fatalities and injuries. To ensure disaster readiness and to increase disaster recovery and resiliency through effective preparation and interagency collaboration City of Fairfax, VA~ Goal “Conservation and Stewardship” Increase nature oriented programming and education Art in the Parks Goals Mission Desired Outcomes Program StrategiesMeasures & Target Budget Report Results 1-3 Years Annually Nov-Dec Annually Jan-May Annually Jun-Jul 3-5 Years Annually Mar-May Attachment 2, Page 7 of 8 PBB Planning Cycle September - Outcomes are developed for FY19 November - Departments and Senior staff develop program strategies - Staff forecast FY19 revenues January '18 - Staff begins development of FY19 Proposed budget with preformance measures - Budget Committee Mid-Year budget workshop April/May - Budget Committee reviews proposed budget What’s Next? Attachment 2, Page 8 of 8 CityofSpringfield,OregonAttachment 3 FY15 PBB Result Maps, Page 1 of 9 Attachment 3 FY15 PBB Result Maps, Page 2 of 9 Attachment 3 FY15 PBB Result Maps, Page 3 of 9 Attachment 3 FY15 PBB Result Maps, Page 4 of 9 Attachment 3 FY15 PBB Result Maps, Page 5 of 9 Attachment 3 FY15 PBB Result Maps, Page 6 of 9 Attachment 3 FY15 PBB Result Maps, Page 7 of 9 CityofSpringfield,OregonAttachment 3 FY15 PBB Result Maps, Page 8 of 9 Attachment 3 FY15 PBB Result Maps, Page 9 of 9 CITY OF SPRINGFIELD, OREGON Desired Outcomes Exercise 9/19/2017 Attachment 4, Page 1 of 7 Provide Financially Responsible and Innovative Government Services Sustain a credit rating, within a health range for our demographics Balance current revenue with expenditures Be adaptive and proactive, using benchmarking to identify best practices, allowing us to provide services at or below the rates of comparable communities Observe specific financial policies, funding reserves appropriately Assess, evaluate, and adopt new technology, processes, and measures of service Attracts, develops and motivates a high-quality, diverse, engaged and productive workforce Attachment 4, Page 2 of 7 Encourage Economic Development and Revitalization Through Community Partnerships Advance opportunities and incentives that encourage private investment, bringing about new jobs and capital investment for businesses Identify sites and invest public resources to bring about new jobs and capital investment Implement infrastructure improvements to increase accessibility Implement Springfield Look initiative Pursue and execute intergovernmental agreements with other agencies Attachment 4, Page 3 of 7 Strengthen Public Safety by Leveraging Partnerships and Resources Implementation of public safety programs with schools Increase emergency management and public safety training Increase common data collection and sharing among agencies Reduce pedestrian/vehi cle risk through improvements to infrastructure Increase services addressing substance abuse Attachment 4, Page 4 of 7 Foster an Environment that Values Diversity and Inclusion Participation of staff/elected officials in community boards and organizations that support diversity Implement an ADA transition plan Increase access to transportation, technology, and housing Implement proactive response to incidents relating to hate and bias behavior or crimes Promote the use of small business, minority and women owned businesses Attachment 4, Page 5 of 7 Maintain and Improve Infrastructure and Facilities Reduce backlog of street maintenance and repairs; reduce deferred maintenance Invest in replacement or improvement of key buildings and structures Update fire, safety systems; and storm water and sewer master plans Implement a 5- year Community Improvement Plan (CIP) Strategy Establish benchmarks for replacement funding for Information Technologies Implement a publically- owned fiber infrastructure Attachment 4, Page 6 of 7 Promote and Enhance our Hometown Feel while Focusing on Livability and Environmental Quality Provide incentive strategies that encourage diversity and availability of new and affordable housing Preserve and Protect sensitive environmental areas from illegal or over use Implement inclusive survey methods to reach a larger number of residents Increase interactions with community, using social media, technology Provide career, library youth services and opportunities that improve graduation rates Design and activate new website Attachment 4, Page 7 of 7