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