Government finance officers: Leading the community through … Fall Conference/BFO Morrill... ·...

Government finance officers: Leading the community

through challenging financial times

2

New York Times, July 26, 2010

Despite signs of a recovery, if a slow one, in other elements of the economy, it may be years away for many municipalities. Between now and 2012, America’s cities are likely to experience shortfalls totaling $55 billion to $85 billion, according to a survey by the National League of Cities, because of slumping revenues from property taxes and sales taxes and reduced support from state governments.

Fiscal First Aid

What is Fiscal First Aid?

•

Immediate adjustments to stabilize a deteriorating financial condition

•

Often short-term measures that will not hurt long-term financial condition

•

May be used to “buy time” for a longer term solution

•

Not necessarily just for those in crisis

5

Before Treatment, Diagnose!•

Distinguish between structural and cyclical deficits

•

Help decision-makers visualize the problem

•

Get benchmark data•

Understand what tough times mean for citizens

6

Visualizing the Problem

7

Business as usual is not sustainable

Deficit ($’s millions)17.6 26.3 33.1 38.5

8

Fiscal First Aid Tactics

•

Make managers manage – accountability through transparency

•

Review currently funded capital projects and future years in capital plan

•

Position review –

vacancy bank•

More rigorous tax/fee collection

9

First Aid Tactics•

Audit routine expenditures–

Pension & Benefits

–

Cellular devices–

Publications, benefits, training

–

Temporary Labor•

Energy consumption–

Buildings

–

Vehicles (anti-idling policy, automatic vehicle locators)

10


•

Vehicles and Major Equipment review•

Audit and closely monitor overtime usage

•

Address health care costs•

Technology review–

Printers, computers and supplies

11


•

Consider fees for service•

Service coordination (e.g. mowing)

•

Inter-organizational cooperation–

Purchasing

–

Working with non-profits•

Stormwater

utility

12

Risky First Aid Strategies•

Selling assets especially if proceeds used to fund ongoing expenses

•

Re-assessing inter-fund transactions•

Short-term debt for vehicles

•

Outsourcing•

Increasing part-time labor

•

Better returns on idle cash by increasing risk

13

Fiscal First Aid Malpractice•

Arbitrarily raising taxes

•

Underfunding

future obligations•

Restructuring employee benefits to defer compensation

•

Too optimistic forecasting•

Spin-offs and special districts to hide financial problems

•

Across-the-board cuts–

Programs or wages

Across the Board Cuts Address $14.5 Billion Shortfall

•

California Governor’s Office: “Across-the-board approach spreads reductions as evenly as possible so no single program gets singled out.”

•

Reaction: “the governor’s approach would be like a family deciding to cuts its monthly mortgage payment, dining-out tab and Netflix subscription each by 10%, rather than eliminating the restaurant and DVD spending in order to keep up the house payments.”

Easy to understand information key to

changing organization behavior

Financial Update August 2009

City of Savannah

Financial StructureGeneral Fund

PoliceFirePublic WorksPublic DevelopmentLeisure ServicesSubsidies

E-911 Fund

Water Fund

Enterprise Funds Special Revenue Funds

Sewer Fund

Parking Fund

Sanitation FundResidential RefuseRefuse DisposalRecyclingStreet CleaningCommercial

Civic Center Fund

HazMat Fund

Community Development Fund

Internal Services Fund

Vehicle MaintenanceInformation Technology

Over 80 Funds

2009 General Fund Revenues

Property Taxes36%

Sales Tax23%

H/M Tax3%

Other Taxes9%

User Fees14%

All Other15%

City of Savannah

Financial Update

August

2009

City of Savannah

Financial Update

August 2009

No Growth in Property Tax Revenue

$0$10$20$30$40$50$60$70

2005 2006 2007 2008 2009

Millions

Projected to end year $724,000 under budget

City of Savannah

Financial Update

August 2009

Sales Tax Revenue below target and $1.65 million below 2008 YTD

Projected $2.7 million draw from Sales Tax Stabilization Fund

$0$5

$10$15$20$25$30

YTD Target YTD Actual

Mill

ion

s

City of Savannah

Financial Update

August 2009

Hotel/Motel Tax revenue below target and $1 million below 2008 YTD

Projected to end year $2.3 million under budget

$0

$5

$10


Mill

ion

s

Revenue 09 Projected Deficit TrendInterest Earnings $ (1,995,000)

Building Inspections (1,080,000)

Business Tax (300,000)

Auto Rental Tax (220,000)

Preservation Fee (62,000)

Water & Sewer Tap-in Fees

On target

City of Savannah


Other Revenue Highlights

2009 Citywide Expenditures

M & FS5%

Parking2%

SCMPD25%

Fire9%

Public Development

6%W & S22%

Leisure Services

9%Facilities

Maintenance7%

Sanitation9%

Other6%

City of Savannah

Financial Update

August 2009

Over 50% of budget personnel

$0

$50

$100

$150

$200

$250

$300

$350

Millions

OtherInterfundCapital OutlayDebtCommoditiesOutside ServicesPersonnel

City of Savannah

Financial Update

July 2009

City of Savannah

Financial Update

August

2009

Salary savings due to vacancy bank

$0$10$20$30$40$50$60$70$80


Mill

ions

Projected to end year $4.8 million under budget

City of Savannah

Financial Update

August

2009

Overtime spending $628,000 or 17% above target

$0

$1

$2

$3

$4

$5

August Overtime Target August Actual

Mill

ions

Projected to end year $855,000 over budget

City of Savannah

Financial Update

August

2009

Monthly Overtime Actual vs. Target --

Police

First time in eight years Police has not exceeded overtime budget and $1.4 million below 2009 actual

0.00.51.01.52.02.53.0

October YTD November YTD December YTD

Mill

ions

Overtime - Budget Target Overtime - Actual

City of Savannah

Financial Update

July 2009

Year to date overtime expenditures by Bureau (millions)

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5

PoliceFire

W & SSanitation

M & FSLeisure Srvs

Fac MantPub Dev

• Fire: Above YTD Target and above last year actual•

Police & Management Services (Parking): Above YTD Target but below last year actual• All other bureaus: Below YTD Target and below last year actual

City of Savannah

Financial Update

August 2009

Temporary Labor spending $177,000 above target

$0

$400,000

$800,000

$1,200,000

$1,600,000


Projected to end year $250,000 over budget

Total Fuel Usage up by 5.6%

134,146 Gallons134,146 Gallons

126,970 Gallons126,970 Gallons

Account for 97% of increase

Reduced unleaded fuel by 1,095 gallons

Revenue 09 Projected Year-End TrendGasoline $ (1,190,000)

Diesel (1,245,000)

City of Savannah


Other Expenditure Highlights

Current projections for 2009 General Fund

City of Savannah


$1.6 million

$7.2 million

$8.8 millionRevenue

Expenditures

Bottom Line

*

* Includes $2.7 million draw from sales tax stabilization fund & $1.8 million from HTRG

Getting the organization’s

attention

Why do we have to change the way we do business?

(Headline about economy)

Atlanta To Cut 222 Jobs; Fire, Police Hours CutFirefighters, Police To Work 36-Hour Weeks

POSTED: December 2, 2008ATLANTA -- The city of Atlanta announced Tuesday that 222 jobs will be eliminated.

This newest round of layoffs comes after 93 jobs were cut less than a month ago

Savannah Great Dane plant closing

BY THE ASSOCIATED PRESS

Trailer manufacturer Great Dane has announced it will close its nearly 100 year-old Savannah plant early next year.

The January closing will leave 270 workers without jobs

Economy Shed 598,000 Jobs in January

In a bleak report on Friday, the Labor Department said that almost 600,000 jobs disappeared in January and that a total of 3.6 million jobs had been lost since the beginning of the recession in December 2007. The unemployment rate, meanwhile, rose to 7.6 percent, from 7.2 percent a month earlier.

Published: New York Times February 6, 2009

We are prepared…

•

Reduced debt by over 40%•

Maintained capital infrastructure

•

Limited growth of new ongoing expenditures

•

Built adequate reserves•

Invested in neighborhoods and economic development

We are not immune…

City of Savannah Financial Update Second Quarter 2008

Sales Tax Declines for Two Straight Years

No growth in 2008 property tax revenue…



Steep decline in development services revenue

Steeper decline in water tap in fees

City of Savannah

Financial Update

Second Quarter 2008

Salaries & wages continue to increase

•

Medical expenditures are now over $14 million

•

Retiree medical contribution up to $6 million…

needs to be $10

million•

Workers compensation exceeded $2 million last year

•

Overtime ballooned to over $8 million in 2008

To balance the 2009 budgetWe had to…

•

Eliminate general wage increase•

Eliminate all general fund capital projects

•

Hold all non-salary expenditures to 2008 levels

•

Draw down $1 million in sales tax stabilization funds (note: January 09 sales tax was down 17%)

This is not sustainable

So what do we do?

A new way to budget

That requires us to…

•

Look at our services with the eyes of a citizen

•

Reach outside our bureau/ department box

•

Focus on priorities and measurable outcomes

•

Relentlessly find and implement efficiencies

Budgeting for Outcomes

The art of leadership in today’s world involves orchestrating the inevitable

conflict, chaos, and confusion of change so that the disturbance is productive rather than destructive

Harvard Business Review July-August 09

Long term solution to financial crisisFo

cus

on

Ou

tco

mes

Community Perspective

Low

High

Low

High

Input Budget Output/OutcomeReporting

Department Outcome Budgeting

Budgeting for Outcomes(BFO)

Why do we need a different approach to budgeting?

•

Permanent fiscal crisis? (tax reform, rising costs, increasing demand)

•

Cynical public•

Perception that government is broken –

citizens don’t receive results for the taxes they pay

•

Shift focus to delivering results at a price citizens are willing to pay

Typical budget balancing techniques are not sustainable

•

Shift funds from other accounts•

Borrow –

shift costs to next generation

•

Pension contribution holiday•

Use reserves/sell assets

• Temporary cost cuts (freeze vacancies)•

Defer capital replacement and maintenance

• Across the board cuts

The future ain’t what it used to be.

Yogi Berra

Why Budgeting for Outcomes?

•

Provides structured process for linking spending to outcomes

•

Provides logical methodology for prioritizing activities and programs

•

Facilitates collaboration and flexibility•

Gives managers opportunities to innovate

•

Avoids gimmicks like across-the-boardcuts

Priority Driven Budgeting takes a comprehensive perspective“The usual, political way to handle a projected

deficit is to take last year’s budget and cut. It is like taking last year’s family car and reducing its weight with a blowtorch and shears. But cutting $2 billion from this vehicle does not make it a compact; it makes it a wreck. What is wanted is a budget designed from the ground up.”

Seattle Times editorial, Nov. 17, 2002 on Washington State’s use of a BFO process.

Budgeting for Outcomes ProcessChoose

priorities of government

Create requests for results

Allocate funds to priorities

Establish the price of

government

Invite offers from sellers

Rank the offers

Decide what to buy

Present the Outcome Budget

64

What Results Matter Most? How to choose priorities

•

Ask your citizens–

Surveys

–

Focus groups–

Internet surveys

•

Build on existing work–

Vision or priority statements

–

Strategic plans

•

Elected leaders make the final decisions

65

Mesa County Citizens Priorities

Mission StatementIn partnership with citizens,

Mesa County will maintain and enhance quality of life by effectively

providing community services that ensure public health, safety, and well

being in a transparent and equitable way.

SloganMesa County—Creating a community

of opportunities for all residentswith a focus on the future.

I want Mesa County to manageand preserve public resources.

I want to feel safe anytime, anywhere in Mesa County.

I want a community where citizens of all ages can be

healthy and successful.

I want plans and infrastructure that maintain quality of life

in the face of rapid growth.

I want Mesa County to have a Variety of industries that will promote a healthy economy.

Continue to efficiently and effectively protect and manage all public resources

Continue to promote and protect public safety

Continue to promote and protect public health and the success of all citizens.

Create well-planned and developed communities

Promote economic vitality in Mesa County

Savannahwill be a safe

environmentally healthy

and economically

thriving

community for all its

citizens

Public Safety

Neighborhood VitalityHigh Performing Gov’t

Health & Environment

Culture

Recreation

Economic

Growth

Poverty

Reduction

Budget Priorities

I want to be safe and feel

safe from crime, fire and

other hazards anywhere in

the City

I want to live in a city of

strong and vibrant

neighborhoods that are

clean, safe, and

encourage a sense of

community

I want to live in a community

that reduces poverty by

empowering motivated

people to become

economically self‐sufficient

I want to live in a community that

provides recreational and cultural

opportunities that will keep my

mind and body active and that

recognize the diversity of its

citizens

I want a fiscally responsible,

accessible and responsive

government that maximizes

use of public resources for

services I need

I want to live in a community

that promotes health

through good infrastructure

(e.g., water, sewer) while

preserving the environment

for future generations

&

I want to live in a city that

encourages & supports

appropriate economic growth

that creates jobs, expands city

revenue and improves

neighborhoods and

commercial corridors

Roanoke Priorities•

Education

•

Safety•

Economic Development/Job Creation

•

Good government•

Human Services

•

Infrastructure•

Livability

Budgeting For Priorities

City Manager

City-wide Priorities Team City-wide Value Team

Position Review

Buildings & office space

Vehicles & Equipment

GIS services

Technology

Mowing & Litter Coordination

Automatic vehicle locators

High Performing Gov’t

Public Safety

Neighborhood Vitality

Poverty Reduction

Economic Growth


Culture & Recreation

R

e

s

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l

t

s

T

e

a

m

s

E

f

f

i

c

i

e

n

c

y

T

a

s

k

F

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c

e

s

Mayor & Aldermen

Customer Service Coordination

Stormwater

Utility

69

Pricing the priorities: Allocating funds

•

How much is each priority worth?•

What are their relative values?

•

This is not a cost question (the old budget game)

•

It’s a value judgment, not science•

Citizen input valuable, not determinative

•

Two conditions will be true: Total has to add to 100%, and that will not be enough.

Results Teams•

Multi-disciplinary employee team

•

Tasked with…–

Refining priority statement

–

Developing indicators to measure progress in achieving priorities

–

Researching causal factors of their priorities–

Developing strategy maps

–

Developing requests for offers–

Ranking offers

–

Negotiating cost reductions with departments

I want to live in a community that reduces poverty by empowering

motivated people to becomeeconomically self-sufficient

▲Education/GED▲Workforce Development▲Entrepreneurial Programs

▲Childcare▲Housing▲Family Planning▲Food▲Transportation▲Healthcare

▲Financial Education▲Bank the “unbanked”▲Home Buyer Programs▲Free Tax Preparation

(EITC application)

Primary Factor 1:SKILLED AND EDUCATED

WORKFORCE

Primary Factor 2:SUPPORT SERVICES

Primary Factor 3:WEALTH DEVELOPMENT

INDICATORS• Poverty rate •

Self-sustaining wage rate •

Unemployment rate • Wealth accumulation

•Water Treatment•Protect Raw Water Source•Distribution System•:Public Education/Training

•Sanitation Management•Street-sweeping•Blight Eradication•Training/Community Outreach

•Greenhouse Gas Emissions Reduction•Solid Waste Diversion (Landfill Diversion)•Waste Reduction•Public Education/Training

•Storm water Treatment/Maintenance•Pollution Control•Watershed Management•Public Education/Training

Primary Factor1:Safe Drinking Water

Primary Factor 3:Clean Streets and

Neighborhoods

Primary Factor 2:Clean Rivers and Streams

Primary Factor 4:Clean Air

Indicators:•

Improve Citizen Satisfaction•

Meet Regulatory Requirements•

Sufficient Capacity to Meet Citizen Needs• Improve Environment for Future Generations

I want to live in a community that promotes health through good infrastructure while preserving the environment for future generations


I want a fiscally responsible, accessible

and responsive government that

maximizes use of public resources for services I

need.

•

Accountability and Integrity

•

Long Range Strategic Planning

•

Transparency

•

Intergovernmental Advocacy

•

Communication

•

Accessibility

•

Responsiveness

•

Professionalism

• Asset Planning and Management

• Capital Strategy and Investment

• Sustainability

• Collaboration

• Balanced Budget

• Long Range Fiscal Planning

• Professional Best Practices

Primary Factor 1: Leadership

Primary Factor 3:

Citizen Engagement and Customer Service

Primary Factor 2: Fiscal Responsibility

Primary Factor 5:

Public Resources Management

Indicators:

• Credit Rating

• 311 Center / Std Response Time

• Per Person Cost of Government

• Employee Retention Rate

• Citizen Satisfaction Survey

Primary Factor 4:

Human Resources Management

• Competitive Recruitment

• Workforce Development

• Creativity and Innovation

• Succession Planning and Engagement

High Performing Government

City of Savannah / Department Name / Title of Presentation

76

Culture & Recreation Request for Result•

CR-02 We seek offers that provide a variety of meaningful education and enrichment opportunities for all citizens. Specifically offers that:–

Expose citizens to local and international art and heritage

–

Integrate with school curriculum to help citizens gain comprehensive understanding within and across various subjects

–

Develop practical work skills to build a more competent and multi-faceted local workforce

–

Provide accessibility across a number of parameters, including ADA compliance, cost, and amenities

77

Neighborhood Vitality•

NV-02 We seek offers that promote and integrate the careful development and maintenance of public realm and open space throughout the community. Specifically offers that:–

Increase the safety, calmness, and accessibility of public streets and facilities, signage and open spaces, integrating pedestrian and cyclist friendly amenities where possible

–

Create, enhance and maintain facilities, parks and squares for the recreation and enjoyment of residents of all ages

–

Ensure public infrastructure is maintained at a “standard condition”

level

78

Teams Invited Offers

•

Departments (and some outside agencies) developed responses to the Requests for Results

•

Their offers were proposals on how to contribute to achieving the desired results -

a performance commitment at

a certain price

79

The offers…•

Promise a specific level of performance at a specific price.

•

Offers of services not departments•

Include proposed measures of performance.

•

Are opportunities for departments to propose new, innovative practices.

•

Assume no guarantee of funding based on historic funding levels

80

Neighborhood Vitality Offers•

Home Purchase Program

•

Park Maintenance•

Flood Mitigation

•

Urban Forestry•

Tree Ordinance Admin

•

Sanitation Code Enforcement

•

Property Maintenance Code Enforcement

•

Development Permitting & Inspections

•

Assistant City Manager –

PD•

Clean Sweep/Derelict Rental

•

Housing Improvement Program

•

Sidewalks/Curb & Gutter ADA

•

Playground equipment maintenance

•

CDBG Planning/ Implementation

•

ROW Vegetation Maintenance

•

Historic Preservation•

Neighborhood Documentation Project

81

Ranking offers –

Results teams seek the best outcomes for the money

•

Forced ranking process (e.g.,15 offers only 5 can be “excellent”, 5 “very good”

and 5

“good”)•

First round ranking ignore mandates and revenue sources

•

Start buying from the top and draw a line when money runs out

•

Send offers back to “sellers” after round one with suggestions for improvement

82

Good Nutrition Priority (Example)

•

GN-01 We seek offers that provide vegetables for neighborhood children. Specifically vegetables that:–

Have a high vitamin and fiber content

–

Are locally grown–

Are versatile (can be used in soups, salads, cooked, or eaten raw)

–

Children will eat (e.g., they taste good)

Forced Ranking Process

Score Bob Rochelle Willie Stephanie Charles Joe Chris

Broccoli G V E E E E E

Squash V G V V V V V

Tomatoes E G G E V V V

Carrots E V E E E E E

Brussel Sprouts V G G G G G E

Celery E E V V G G G

Parsnips G V E V E E G

Peas V E G G G G V

Onions G E V G V V G

E = Excellent; V = Very Good; G = Good

Forced Ranking Process Round 1


1 Carrots 20 3 2 3 3 3 3 3

2 Broccoli 18 1 2 3 3 3 3 3

3 Parsnips 15 1 2 3 2 3 3 1

4 Tomatoes 14 3 1 1 3 2 2 2

5 Squash 13 2 1 2 2 2 2 2

6 Peas 12 2 3 2 2 1 1 1

7 Celery 12 3 3 1 1 1 1 2

8 Onions 12 1 3 2 1 2 2 1

9 Brussel

Sprouts 10 2 1 1 1 1 1 3

E = 3; V = 2; G = 1


1 Carrots 20 3 2 3 3 3 3 3

2 Broccoli 18 1 2 3 3 3 3 3

3 Parsnips 15 1 2 3 2 3 3 1

4 Tomatoes 14 3 1 1 3 2 2 2

5 Peas 13 2 1 2 2 2 2 2

6 Squash 12 2 3 2 2 1 1 1

7 Celery 12 3 3 1 1 1 1 2

8 Onions 12 1 3 2 1 2 2 1

9 Brussel

Sprouts 10 2 1 1 1 1 1 3

Forced Ranking Process Round 2

E = 3; V = 2; G = 1

87

Spokane Example: Buying Learn and Grow Offers

88

Purchases -

Keeps and Cuts (Washington State)

Savannah 2010 Funding by Priority

I want to be safe and feel safe from crime, fire and other hazardsanywhere in the community.

•

Safe Neighborhoods•

Well-Designed & Maintained Infrastructure

•

Public Education•

Successful Children•

Multi-Agency Engagement

•

Effective Communication Systems•

Appropriate & Timely Deployment•

Interagency Cooperation•

Capable Response & Recovery

•

Enforcement of Codes & Laws•

Offender Accountability•

Auxiliary Services

•

Effective Plans•

Trained, Equipped & Practiced Responders

•

Effective Emergency Warning Systems

•

Public Education•

Inter and Intra-Agency Cooperation

Primary Factor:Prevention

Primary Factor:Responsiveness

Primary Factor:Preparedness

Primary Factor:Enforcement

Indicators:

•

Response Time to Calls for Service for Emergencies

•

Perception of safety on Citizen Survey

•

Part I Crime Rate (by type & by neighborhood)

•

Casualties and Value of Property Loss from Fire and Other Hazards

Reduce Risk

Increase Protection

Public Safety Results TeamRevised 21 April 2009Other Hazards include natural & man-made disasters, structural

hazards, vehicular & pedestrian hazards, and mass public gatherings.

Public Safety

Public Safety Results Team Members

•

Jerry Cornish, Information Technology•

Gerry Long, Metro

•

Ben Morse, SF&ES•

Carol Bell, Central Services

•

Jennifer Payne, Citizens’

Office•

Barry Baker, Recreation Services

•

Luciana Spracher, Research Library•

Martin Fretty, Housing

•

Brian Hollis, Risk Management•

Julia Durrence, Budget

Rank Offer Number Offer Name Amount1101-4210-01 Police Patrol Operations $28,268,243 2101-5140-07 Fire Operations $21,186,088 3101-5101-04 Fire Training $344,933 4241-4251-02 Consolidated 911 Emergency Dispatch Center $5,294,148 5101-4262-02 Police Training Unit $932,060 6101-5101-01 Fire Administration $752,772 7101-4201-01 Police Bureau Management $755,062 8101-4220-01 Police Investigations $6,518,370 9101-4220-02 Police Forensics Services $1,620,188

10101-5101-02 Fire Prevention Program $581,251 11101-4240-01 Police Support Services $3,202,742 12101-1120-01 Recorder’s Court Services $2,026,029 13101-4210-03 Police Traffic Enforcement $641,561 14104-5155-06 Fire Hazardous Materials Unit $404,944 15101-1109-01 Emergency Management Coordination $105,412 16101-4261-01 Counter Narcotics Team (CNT) $3,149,888 17101-4231-01 Police Traffic Investigations Unit $1,499,325 18101-2103-01 Vehicular/Pedestrian Traffic Flow & Safety $2,465,852 19521-3104-02 Fire Hydrant Testing & Maintenance Program $457,951 20561-1113-04 Red Light Camera Management and Enforcement $427,325 21101-4201-03 Police Public Information Service $212,542 22101-2103-03 Street Lighting Maintenance and Operation $3,446,193 23101-2104-02 Stormwater Conveyance Systems Maintenance $2,849,037 24101-4264-01 CrimeStoppers $227,429 25101-4201-02 Police Savannah Area Regional Intelligence Center $1,400,344

Priority List continued26101-2104-04 Stormwater Pump Station Maintenance $1,099,598 27101-2104-03 Stormwater Conveyance System Repair $772,263 28101-4201-04 Police Court Liaison $89,068 29101-4262-01 Police Internal Affairs Investigations $798,123 30101-4235-01 Police K-9 Unit $538,538 31101-4233-01 Police Marine Patrol $728,973 32101-4237-01 Police EMS Coordinator $95,390 33101-4230-01 Police Special Operations Administration $579,145 34101-4250-02 Police Records Service $1,330,808 35101-2105-03 Street Repair and Maintenance $1,342,320 36101-4262-03 Police Recruiting/Hiring Unit $426,531 37101-4236-01 Police Animal Control $820,052 38561-1113-01 Public Transportation Regulation Program $344,933 39101-4250-03 Police Customer Service Desk $498,914 40101-4210-02 Police Crime Prevention $421,686 41101-5101-03 Fire Public Education/Public Information $86,333 42101-2104-01 Stormwater Capital Projects Engineering $538,894 43101-4263-01 Offender Reentry Services $1,270,162 44101-4265-01 Offender Re-entry-Job Development $288,002 45101-4234-01 Police Mounted Patrol $530,537 46101-0150-02 Neighborhood Traffic Calming Program $54,500 47101-4232-01 School Crossing Guards $256,240

TOTAL $101,705,666 CutsFinal

1st

Round

Cuts

2010 Enhanced Purchases

Partially Funded Services•Significant reduction in funding for both SIP

and Work Ventures from 2009 to 2010•No impact in Level of Service due to creative

application of Dept of Labor stimulus grants•7 sworn officers will move from SIP to the

street

•School Crossing Guards•Service will be provided by School Board

with subsidy from the City during

transition of service provision

responsibility

Items to Evaluate Next Year•

Take home vehicles

•

Increase fiscal responsibility in Precincts and Fire Stations

•

More effective Overtime systems•

Cost-sharing for events

•

Combine Police front desk with 311

•

Fuel efficiency

97

Lessons Learned•

Get governing board bought in early

•

Determine level of outside help you need•

Build off existing foundations where you can (e.g. performance measurement, citizen input)

•

Put the “best & brightest”

on teams –

don’t choose by titles

•

Communication is key throughout process•

Must continue to challenge the status quo

•

You can’t do it part way

98

Assessing BFO Readiness•

Do you have the time?

•

Do you have the talent?•

Are your elected officials on board?

•

Do you have support of top management?

•

Do you have the technology?•

Can your organization deal with change?

•

Do you have a communication strategy?•

Can your organization deal with the fact that it is an art not a science?

99

Unanticipated Consequences•

New leaders emerged

•

The level of discussion and debate in the organization was elevated

•

Finally linked performance measures directly to results

•

Built tremendous capacity throughout the organization

•

Level of understanding and cooperation between departments increased substantially

•

Elected officials felt much more involved in budget process

There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.

Nicolo

Machiavelli

101

A Sampling of BFO GovernmentsStates

–

Washington–

Iowa–

South Carolina–

Michigan–

Louisiana Dept, of Culture, Rec

& Tourism–

Oregon Dept. of Education

–

Manitoba

School Districts–

Jefferson County, CO–

Billings, MT

Cities–

Azusa, CA–

Los Angeles–

Spokane, WA–

Dallas, TX–

Ft. Collins, CO–

Grand Rapids, MI–

Redmond, WA–

Savannah, GA–

Roanoke, VACounties

–

Snohomish, WA.–

Mesa County, CO–

Polk County, FL–

Jefferson County, CO

You must distinguish the essential from the expendable. What is so

precious and central to an organization’s identity that it must be preserved? What, even if valued by many, must be left behind in order to

move forward?

Harvard Business Review July-August 09

103

BFO Resources•

GFOA – www.gfoa.org

•

ICMA –

www.icma.org•

Public Strategies Group – www.psg.us

• “The Price of Government” by David Osborne and Peter Hutchinson

•

Veteran BFO communities•

BFO for Smaller Communities -

Package of Tools

and Coaching provided by GFOA–

Step by Step Web-based Guide–

More than 125 documents – templates & samples–

Coaching

http://www.gfoa.org/

http://www.icma.org/

http://www.psg.us/

Battle not with monsters, lest ye become a monster, and if you gaze into the abyss, the abyss gazes also

into you.

Friedrich Nietzsche

Thank you

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