Simplifying the Budget Process

Lindsey Duncan– City of SurpriseBrandi Suda – City of FlagstaffCandace Cannistraro – City of Mesa

How the Budget Process Can Seem

What can we do about it?

When is it too much information?What information is actually valuable? Full preliminary budget books take a considerable amount

of staff time for both content and formatting Department schedules, Financial Schedules, 200 plus pages

Replaced with Summary of Proposed Budget Assumes they have the current budget book and outlines just the

changes, 26 pages, bookmarked electronic council report Gives an overview and status of the various funds and overall

budgetary pressures Gives an overview of significant changes in department budgets

No More Preliminary Budget Books

“This is the best s

ummary of the

budget we have ever had.”

“We don’t need to meet with all the

departments. It’s all right here.”

Timelines are aligned with annual budget processProcess coordination and oversite is done centrallyAll financial information is reviewed centrally

Requires additional staff time and effortAvoids conflicting information being presentedAvoids the surprise factor

Coordinate Related Processes

What did they just say?!

OMB reviews and presents all documents from departments to City Council in a comprehensive manner.

Department staff are in attendance for specific questions or background regarding the fee.

Ensures adherence to the 60 day legal posting requirementIncreased standardization of reports/informationIncreased efficiency of presentation of informationProvides a logic check for departments

Fees and Charges Process

One consolidated report and presentation is created for all five Mesa utilities

OMB Director leads presentation and serves as facilitatorAdoption of new rates are aligned with adoption of budget

Unified voice in rate and structure recommendationsEnsures adherence to legal requirementsFocus on overall health and sustainability of the Enterprise

fund

Utility Rate Modifications

How do you ensure Budget staff and Department staff are speaking the same revenue/expenditure story?

Roundtable Question

Line item budgeting allows for tracking the type of expense but it doesn’t say why the expense was needed

Mesa discontinued giving line item information to the City Council, including removing all but the City level schedule from the budget book

Long discussions with Council and requests for additional information regarding travel, professional services and such went away

But what do we give them then?

Replace What with

Mesa’s Budget Documents

No Divisions or Sections

Only Expense Categories

What type of documents do you share with your Council for budget review?

Roundtable Question

What are the overall goals/vision of the City?What is the department’s public purpose? Why do they

exist?How does what we do align with the city’s goals/vision?What are next year’s goals/objectives for each

department/program?How will they know if they are successful?What resources will it take to be successful?

Performance/Activity Based Budgeting

How do you incorporate Performance Management in your budget process?

Roundtable Question

Finance meets with all departments on budget requests includingRevenue estimatesChange requests (supplemental requests)Capital Projects

Budget prepares a list of change requestsBased upon capacity for additional positions and programs

categorizes Yes, Not Now, Maybe Finance prepares a recommendation for the City ManagerCity Manager approves recommendation or adds/requests

changes

Developing the Budget with City Management

What role does the budget workgroup play in meetings with/recommendations to City Management?

Roundtable Question

Position Requests

DescriptionJustification

Human Resources Review

HR reviewed and classified every position requested based on the form

Now, HR is given list of positions along with description and justification

HR reports approximate grade for personnel estimates

Upon approval, HR performs formal analysis

Straightening the Pipes Effortat the City of Flagstaff

Goals

1. Simplify & improve the process for both users and finance staff2. Shorten entire budget process from beginning to end3. Save time & effort for all

Straightening the PipesKey to Success

Key to our success was obtaining feedback at all levels in the organization.Surveyed all employees that were involved in the

budget process Held meetings with employees at all levels within

the City

REMINDER: Check-in and reevaluate further changes

Straightening the PipesObtaining Feedback

What did we ask and discuss:Usefulness of materials provided by FinanceHow well they thought they understood the various

budget steps/processesQuality of communication they receiveFeedback on some ideas the Finance staff

presented for improvements

Reduced data entryReduced the amount of required paperworkEliminated steps that provided minimal valueRealigned deadlines to match better with decision

pointsProvided more timely financial data to Departments Improved timeliness & quality of communicationCut approx. 3 weeks off the overall process

Straightening the Pipes Results

What internal processes did you go through to begin simplification?

Roundtable Question

Council Presentation of the City Manager’s Recommended Budget

Stop the Parade

Stop the Parade

Not necessary to showcase the entire department during the budget presentation

Nor is it necessary to hear every department’s budget

Consistent organizational wide budget messageReduces the opportunity for political persuasion

Focus on Topics, Decision Points & Results

Work to move the focus away from detailed financial data. Focus on the highlights.

Only present those departments or topics with budgetary issues that need feedback and input from Council.

Consider focusing the discussion and presentation on how the budget will further/align with the Council Goals/Strategy Plan, etc.

Council can still request specific presentations based on the information in the preliminary budget overview.

Do you hold Budget Retreats? How do you receive feedback from stakeholders?

• Timing?• Frequency?• Content?• Format?

Roundtable Question

How do you inform your Council and incorporate their input in the budget process?

Roundtable Question

In Closing