HomeMy WebLinkAbout2007 06-18 CCP Joint Work Session with Financial Commission Pu,b 1 i C.. Co
AGENDA
CITY COUNCIL FINANCIAL COMMISSION JOINT WORK SESSION
June 18, 2007
6:30 P.M.
Council /Commission Conference Room,
1. Call to Order
2. Resolution In Support of a 2007 Special Legislative Session to Consider the Omnibus
Tax Bill (City Council Only)
3. Budgeting for Outcome Discussion
a. GeneralOverview
b. Set the Price of Government
c. Establishing the Priorities of Government
4. Other Business
5. Adj ourn
Member introduced the following resolution
and moved its adoption:
RESOLUTION NO.
RESOLUTION IN SUPPORT OF A 2007 SPECIAL LEGISLATNE SESSION
TO CONSIDER THE OMNIBUS TAX BILL
WHEREAS, the Minnesota Legislature, in its 2007 regular session, passed the
2007 Omnibus Tax Bill (House File No. 2268); and
WHEREAS, the Omnibus Tax Bill contained provisions, including:
homestead property tax refunds
increases in local government aid, which would benefit cities, counties and
townships
veterans' benefits
higher education tuition deductions
incentives for farm and business expansion; and
WHEREAS, the regular legislative session of the 2007 Legislature has now
ended; and
WHEREAS, the Omnibus Tax Bill was vetoed by Minnesota Governor Tim
Pawlenty on May 30, 2007, and the Governor has indicated support for tax levy limits which
constrict the ability of municipalities to generate revenue for municipal services; and
WHEREAS, the Ornnibus Ta�c Bill would be a great benefit for the taxpayers of
Minnesota, especially property taxpayers; and
WHEREAS, a special legislative session, if convened, would permit further
discussion and possible enactment of the Omnibus Tax Bill;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota:
1. That this Council requests that the Governor of the State of Minnesota, Tim
Pawlenty, convene a special legislative session without delay to enact the
2007 Omnibus Tax BiIL
2. This Council urges the Governor and State Legislature to not impose limits on
municipal tax levys.
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RESOLU
TION NO.
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Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
I and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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City of Brooklyn Center
A Millennium Community
MEMORANDUM COUNCIL/FINANCIAL COMNIISSION JOINT WORK
SESSION
DATE: June 15, 2007
TO: Brooklyn Center City CounciUFinancial Commission
FROM: Curt Boganey, City M��
SUBJECT: Budgeting for Outcomes
Monday's meeting will be the begiruling of new process for developing future budgets. It
is an approach that has become increasingly popular in recent years, though it is not
totally new by any means. The intent of budgeting for outcomes as described in the Cover
Story article is to shift the budget focus away from changes to the status quo and focuses
resource allocation on achieving strategic goals or meeting needs of the community.
Even though we will not be able to fully implement the twelve step approach as outlined
in the book "The Price of Government" written by Osborne and Hutchinson and
described in the article, I believe there is no time like the present to begin.
Assignment:
To expedite the deliberations on Monday, each Council and Commissioner is asked to go
to pages 3-13 of the "Mission Statement" document. You will note that under the heading
Key Result Measures followed by three blank lines. Before Monday's meeting please f 11
the blank lines in with your key result opinion for each of the eight critical results.
In other words how will you know if the critical result is being achieved. For example on
page eight of the Cover Story there is a diagram showing the key result Improve
Neighborhood Quality" The measurements are, Feel Safe, Good Neighbor Relationships,
Attractive Neighborhood, Good Amenities, Adequate Supply of quality Housing and Can
Move Around.
Another example might be under critical result Improved Existing Housing Quality"
you might measure the result as the elimination of dilapidated housing structures.
Hopefully, these examples will help you complete your three measures for each result. If
not you can reach me at 763-569-3303 or home at 763-391-5732.
t reach a consensus on how to measure
Based on our res onses we should be able o
Y P
results achievement on Monday.
6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number
763 569-3400
Brooklyn Center, MN 55430-2199
City Hall TDD Number (763) 569-3300 FAX (763) 563-3434
FAX (763) 569-3494
www. cityofbrooklyncenter.org
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2007 BUDGET FOR OUTCOMES REVENUE SHEET 1
2005 2006 2007 2008
6enerai Revenue
PropertyTaxes 11.288,883 11,618,486 11.739.946
Tax Increment 4,216,246 2,682,874 3,021,700
Frenchfse Fees 662,614 658,430 665,000
Lodging Taxes 710,619 738,776 650,000
Grants and Contributions not
retrfcted to speciflc progroms 577,548 702,030 S 767,665
Unrestricted investment Income 1,272,409 5 1,928,462 1,375,115
Gain on disposal of capital asset 31,860 23,963 S 3D,000
ToWI general revenues and Vansfers S 18,760,199 S 18,353,001 18,249,428 S
ChargesforServkes
GovernmentActivities.
Generel Grnemment 297,511 289,203 .433,040
Public Safety 1,026,736 800,408 662,500
Public works 9,661 259,273
Community Services S
Parks and Recreatlon S 681,851 665,332 626,251
Economic Development 160.,531
Total Charges for Services S ZAU`.�59 2,178,747 S 1,721,791
Operadng Grants
Government ActivRies:
6enere) GovernmeM
Public Safety S 611,886 688,023 485,000
Public works S 90,000
Community Services
Parksand Recreation 79.827 3,899
Economic Development 1'�,920 56,966 S 195,019.
Toial Operatlng Grents S 795,633 748,888 S 680,019
Capital 6rants and Contributions
GovernmentActivitles:
Generol Govemment 60,000 SS,ODO 95,900
Public Safety S
Public works 2.328,345 2,117,851 2,198,535
Community Services
Parks and Recreation 10,000
Economic Development S
Interest on long-term debt 5,900 S
TotalCapiplGrants 2,398,345 2,208,751 2,294,435
SUBTOTAL• governmental activiNes Z3,969,936 S 23.489,387 S 22,945,673
Business-type activities:
Municipal iiquor 1,099,172 1,244,738 1,239,765
Golf course 256,276 250,44�14 298
Earle Browne Heritage Center 1,857,461 2,168,861 2,039,542
Recycling and refuse 235,160 242,588 245,300
Street light util'Ry 214,669 221,341 231,Z30
Water UGlity 5 1,825,521 1,9D6,375 1,677,584
Sankary Sewer Utility 2,966,222 3,186,569 3,04�.603
Stnrm drafnage utflity 1,298,690 1,323,607 1,384,460
Unrestricted Investment Income 199,876 337,231 335,000
SUBTOTAL• business-type activities 9,953,047 30,881,754 S 10,491,284
TOTAL ORGANIZATIONAL REVENUES 33,922,983 34,371,141 33,436,957
I t i i i i i
I s R i j I 1
r COVER STORY
I E
by Camiile Cates Barnett and Darin Atteberry
anagers can take several approaches as they prepare their budgets:
Abacus: Budgeting is primarily a numbers game. Make the revenue
match the expenses. Show lots of complicared financial information.
The motta: "Trust me; it all adds up."
Abracadabra: Budgeting is magic. T'he manager is the magician. The motto: "Yau
just tell me what you want, and I'll make it work."
Axe: Budgeting means start chopping. Make across-the-board cuts where all pro-
grams and services are diluted. The motto: "Do more with less."
Aim: Budgeting focuses the organization on outcomes people care about at a price
they are willing to pay. The motto: "What's the best way to get these results?"
So, here is a new manager faced with the most challenging budget in the local
government's history. This is a story of how the manager used the financial chal-
lenge to transform the budgeting process and the organization. He moved from
Axe to Aim.
The realiry for this new manager is: a national recession has hit the local econo-
my, there's a dawnturn in the high-tech industry, and increasing regional competi-
tion has caused sales and use-tax revenues to go from double-digit growth to near-
ly flat growth. Costs have been quickly outpacing revenues. Departmental budgets
have been cut by approximately $6 million (or 6 percent) and services reduced,
and employee compensation has been frozen for three years.
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This was the situation when this
article's author, Darin Atteberry, was
appointed as interim ciry manager CosdAgency–Based Budgeting for Outcomes
of Fort Collins, Colorado (popula- Starting point: Last year as the base Price of govemment: how
tion 139,908), in June 2004. His ap- "entidement." much citizens are willing to
pointment was changed from interim spend for services.
manager to city manager in December
2004, and it was clear that the first or- Focus: Add or subtract from base Buying results that matter to
der of business was to get a handle on entitlement. citizens from competing offers.
the budget situation. Addition: Autopilot increase new Since there is no base, there is
When a new mayor and three new base. no adding and subtracting.
ciry councilmembers were elected in Subtracuon: �"Cut" from new base. l
April 2005, they reinforced that some-
th�ng had to change. The budget was Submission: Justification for needs and Offer to deliver results at the
due to the council in September 2005 for costs, plus extra. set price.
a fiscal year be nnin in January 2006. Incentives: Build up cost and make cuts Produce the most resulcs that
In February 2005, author Camille hard. matter, at a set price.
Barnett met Atteberry in Fort Collins. Analyst's job: Find hidden or unnecessary Validate offers or find better
She e�plained a new approach to bud- costs. choices.
geting that might help him balance Elected Choose to cut services or Choose the best offers in order
the budget and begi.n some funda-
mental changes in the organization. officiaPs job: raise taxes, and get blamed to get the most results for citi-
The challenge: Will there be enough (or blame someone else). zens at the price they will pay.
time? An aggressive workplan was de- I Debate: What to cut; what to tax. How to get even better results. J
veloped 1lld tlley gOt St2iteCl. m David Osborne and Peter Hutchinson, The Price of Government: Getting the Results We Need in an
Tl1e f1T5t meeting Wd5 a S1g111f1C2nt Age of Permanent Fiscal Crisis (New York, Basic Books, 2004), page 66.
tuming point. Atteberry lmew it was a
tight schedule, and he lmew it was a risk
to start a new approach But he aLso lmew with a set of results and encourages These steps correspond to the basic
that the old approach was not working. creauve ways of achieving them. The questions that the budge[ answers:
So he took the cliance and put his cred- budget is prepared through an inclusive
ibiliry on the line to make it work. and interacuve process that is difEerent Determine how much revenue will
The approach taken was not the from the traditional budgeung process. be available.
rypical budget ?�e; it was a budget BFO does not enable the players in the o Determine what results matter
that would improve the city's Aim. budget to become better at the game; it most to citizens.
Budgering for outcomes (BFO) is an changes the rules of the game. Decide how much to spend to
i approach that is based on collabora- Budgeting for outcomes is not achieve each result.
tion, transparency, and delivering the a panacea. It is a practical tool for Decide how best to deliver the re-
services that matter most to the public. implementing fundamental change in sults that citizens expect.
Changes often are made by a new the way the local �government works.
administration, but nothing changes It is an approach that integrates stra- The Government Finance Officers
in the budget process. If the budget tegic planning, long range financial Association (GFOA) has recently
system does not support the new direo- planning, budgeting, and performance adopted this approach to budgeting
as a "recommended ractice." GFOA
tion, those thanges will not lasL Since management. p
the budget touches everything, chang- People pay attention to money. The describes the steps in the process as: i
ing it will begin to change everything. most unportant resource allocauon de-
The budget process has great leverage. i cisions of a community are made with l. Determine how much money is
the budget process. That process can available.
WHAT IS BUDGETING FOR support change or inhibit it. Budget- 2. Prioritize the results.
OUTCOMES2 ing can demonstrate effective, ethical, 3. Allocate resources among high pri-
BFO (also la�.own as results budgeting transparent, innovative, and inclusive I oriry results.
or purchasing results) is a budget pro- ways of doing business—or not. 4. Conduct analyses to determine
cess that aligns resources with results what strategies, programs, and ac-
roduced. Instead of starting with the BUDGET PROCESS tivities will best achieve the desired
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previous year's budget and justifying Budgeting for outcomes can be de- results.
increases from that base, BFO starts scribed as a series of basic steps. 5. Budget available dollars to the most
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significant programs and activities. j Fort Collins had to live within its ship team did not ask "How much did
6. Set measures of annual progress, decreased means and still address the we spend on this last year?" Rather,
monitor, and close the feedback loop. top public priorities. they asked "What would it be worth
7. Check what actually happened. to our citizens for us to achieve this
Step 2: Prioritize the results. At that resutt?" (See Figure 1 on page 11.)
Each of [hese steps in the process is same early council retreat, policymak-
described in this article. Throughout ers chose a set of results to be achieved. Step 4: Canduct analyses to deter�
this process, BFO changes the focus of They asked "What results matter the mine what strategies, programs and
the budget process from inputs used most to our citizens? Later, the council activities wiii best achieve the results.
(like dollars and people) to results reviewed staff recommendations and The next step is to decide how best to
produced (like improved public safery formally adopted the results and mea- deliver the results that citizens expect.
and a stronger economy). sures to show progress on achieving Budgeting for outcomes uses a mar-
the results. A key to making these deci- ketplace analogy to decide how best
Step I: Determine how much money sions strategic was to limit the number to achieve each result at the price allo-
wi{I be available. The process starts of results to no more than 10, and the cated. There are buyers and sellers.
with deciding what revenue is available number of ineasurements per result to The buyers—cross-functional "re-
to the local govemment. This decision three. These are the results: sult teams" in Fort Collins—represent
is usually the last step in a tradiaonal the policymakers and the public.
budget process. Part of this step is to Improve economic health. Their job is to get the best results for
present financial informauon in a way Improve environmental health. the money. They developed a request
that is understood by key stakehold- Improve neighborhood qualiry. for results (RFR) that is like a request
ers in the process: mayor and council, Make a safer community. for proposal. The RFR includes:
managers, workforce, and the public. Improve cultural, recreational, and
Even though it was obvious for sev- educational opportunities. The result to be produced and how
eral years that Fort Collins was in the Improve transportation. it will be measured.
midsc of a fiscal crisis, and the ciry had Make a high-perforn govemment. A results map—a visual description
taken acdons each year to bring e�pens- of what the buyers think produces
es and revenues into balance, it became Step 3:Allocate resources among high the result (see below).
evident early in the BFO process that priority results. The city manager and Purchasing strategies or a descrip-
the organization and the communiry his leadership team then decided how tion of what kind of offers (propos-
lacked a fundamental understanding of much to spend to achieve each result. als for programs and activities) the
the magnitude of the ciry's fiscal condi- Even when you have chosen the "vital buyers want to see. The purchasing
tion. Some thought [he problem was few" results that matter the most to strategies are the result of the anal-
exaggerated or would just go away on the public, people's priorities will dif- ysis that is depicted in [he results
its own with rime; others thought that fer among those results. The leader- map.
there was not a lasting problem and that
the organization should conunue with
business as usual.
Management had to gready increase
communication with the organization
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to help create a common understanding
of the city's fiscal issues and why a new
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approach to addressing its fiscal issues
had to be adopted. The city had to simi-
larly undertake an aggressive commu-
nity-wide outreach program as welL
To decide the revenue available,
Fort Collins used all revenue sources
of the city, including taxes, fees
charged, enterprise revenue, all state
and federal monies, grants, everything.
By including all revenue sources, Fort
Collins encouraged depar[ments to
work together to produce a result.
The city council decided at an
early retreat that raising taxes or other
revenues would be a last resort. So
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The Fort Collins RFR for im- ties. The sellers make several offers lenge the staffstill is worlang to perEect
proved neighborhood quality, fo
r to result teams. Each team then ranks
example, included a results map each of the offers based on how well it Budgeting for outcomes is intel-
(shown on page 8). The RFR for im- produces the desired result. Then the lectually easy to understand—we all
proving neighborhood quality also result teams take the amount of money want to explicitly link our strategy
included purchasing strategies based allocated to the result and buy from to operations, produce desired out-
on the analysis shown in the results the prioritized list until they run out of comes, and measure our performance.
map. Since the buyers know what money. Then they draw a line. Every- A process like BFO, however, flies in
causes the results, they want propos- thing above the line is in the budget; the face of traditional local govern-
als from the sellers that follow those everything below the line is not. ment budgeting, traditional budgering
successful strategies. Here are some Fort Collins calls this prioriry rank- "rules" established over a long period
examples of purchasing strategies to ing of proposaLs a"drilling platform." of tune, and the traditional roles of
improve neighborhoods: The offers that ranked high included local government staff and officials—
a code enforcement and neighborhood frontline employees, management,
We want offers (proposals) encour- services program, a new one-stop cus- and elected officials--in the budget
aging and fostering good neighbor- tomer service shop that consolidated process. The changes that have come
hood relationships. Specifically, we adminisffative staff from three different to Fort Collins as it has used BFO
want offers improving relationships departments, and a universiry/commu- have greatly improved the overall
between students, landlords, resource allocation process, but it
renters, and homeowners. t;- has not been easy.
We want offers encouraging vol- —T�e reSUlt tPa.l'Y1S ta E
unta com liance with arkin BUDGETING BENEFITS
P P g the amos�nt o� monev The BFO process led to these key
regulations and city codes, in 4-
addition to innovative enforce �,(�p t0 t reSult successes:
ment efforts.
We want offers collaborating and�l��v from th� ft created a higher level of cred-
t �e
with Colorado State University ibility between the city and the
ur�or�t�zedlist �ntil f
(CSU) administration and As- community. An editorial in the Fort
sociated Students of CSU to �1We�v r� �n n�'�t nf `Yl^1017��Y_ I J Collins Coloradoan on November
improve neighborhood qualiry. E;' 18, 2005, summed up what many
We want offers providing and 'T1�en thev d a I�ne :I in the communiry felt about the
maintaining attractive public �vervth�n� above thP I`` process: "Installing budgeting for
outcomes, which was only pro-
spaces within neighborhoods. i°.
We want offers to create more -I111e IS lil t'rtE�U(��Q� f°' posed early this year, in such a swift
affordable housing opportuni- V t` manner came wit h its s hare o f d i f-
ties, ivin reference to offers �Y.�' h�n¢ Czw the 4; ficulties, but the ciry council, Ciry
g g P Mana er Darin Atteberry, and par-
based on collaboration and g
line �s not ticularly city staff deserve credit for
partnerships.
getung this much-needed, process
The sellers are the departments and nity liaison program that is jointly under way.
other providers of services. Their job funded by the city and Colorado State Not everybody, including the Fort
is to make offers (proposaLs)—with Universiry. Offers that did not rank Collins Coloradoan editorial board and
a price tag—to produce the results. well and were not funded included a two ciry councilmembers, agree with
Since there is no base budget, every- new neighborhood parking and traffic the specifics of what was funded in
thing the ciry does that you want to calming program and two new police the end. But the advantage of budget-
continue to the next year will be ex- substations. More budget information ing for outcomes is that it makes ciry
pressed as part of an offer. can be found on the Fort Collins Web government more transparent in its
The sellers' job is to make sure site at httpJ/fc govcom/budget. budgeting decisions."
everything they do contributes to i With BFO, the budget holds no
producing one of the desired results. Steps 6 and 7: Set measures of annual surprises for elected officials or the
Since rhere is no base budget, existing progress, monitor, and close the feed- communiry. Trade-offs are clear.
programs and new ideas compete on back loop. Check to see what actually
the same basis. Innovations and best happened. As Fort Collins begins its It strengthened the partnership with
practices are encouraged. next round of budgedng, these steps will city council. According to Fort Collins
have special attention. Setung up an ef- Mayor poug Hutchinson, "Previous
Step 5: Budget available dollars to the fective performance management system budget processes focused primarily on
most signi�cant programs and activi- to track progress on the results is a chal- funding ciry departments, rather than
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on providing services to citizens. With ing to see the communiry respond in er administrauve and customer service
BFO, council had an unprecedented a way that shows not only that people duties. These five departments created
level of involvernent, setting the priori- value and desire quality library services a one-stop administrative-service pool
ties and idenufying the outcomes that but that they're willing to pay for them r that minimized redundancies in efforts
rnatter most to our citizens." like phones and reception, mailings,
People worked together. In Fort Col- board support and customer service
The budget document changed from lins, more than 300 city employees staffing. As a result, 3.75 positions have
an accounting manual to an open and from all departments and organiza- j been eliminated, costs are lower, and i
transparent map of the services we tional levels participated directly. The customer service representatives are
deliver. Rather than spreadsheet upon council involvement took place earlier now cross-trained and able to readily
spreadsheet, the new budget docu- in the process and was in much more answer questions without transferring
ment includes easy-to-read pages of depth than in the past. calls to other depamnents.
key purchases. Employees became more aware oi
services provided by other depart- LESSONS LEARNED
People understand the budget. Citi- ments and, by thinking creatively, Along the way, important lessons were
zens, council, and a majority of city were able to cooperate with other learned:
staff now have a much greater under- ciry departments to find more cost-
standing of Fort Collins's finances and effective ways of accomplishing goals BFO will change your role and the
i what it costs to provide the level of and delivering services. roles of your management team and
service that the Fort Collins commu- As a result of BFO, for example, staff. It all begins with challenging
niry desires and e�;pects. there is significandy more collaboration who really makes decisions regard-
In November 2006, Fort Collins between the ClimateWise program of ing budget issues. The ciry's budget
voters overwhelmingly approved a the ciry's natural resources department process had become extremely com-
properry tax mill levy increase to fund and the energy efficiency and water plex over the years, with many funds,
a new library district. Throughou[ the conservaaon programs of the local uali- dedicated funding streams, complex
BFO process, ciry staff communicated ues. Not only does utilities now fund a reserves, and a nearly 500-page bud-
repeatedly on the "cost of quality" big portion of the ClimateWise budget, get book. These elements made the
and the choices facing citizens on the but staff from the two departments process complex for the elected of-
level of service desired. now coordinate to a far greater extent, ficials, which made the staff the
The library vote demonstrates that creating a more seamless program for perts" in the process, and, as a result,
people heard the message. library ser- C1ur�ateWise business partners. staff were really driving the decision-
vices contribute greatly to the quality In another situation, five different making process. Prior to BFO, chang-
of life in Fort Collins, but these services departments with somewhat related es to the budget made by elected offi-
come with a price tag. It was encourag- functions each had separate staff to cov- cials tended to be somewhat limited.
BFO creates transparency in the
budget process, which means people's
roles change. For the first time, elect-
ed officials thoroughly understood the
policy, fiscal, and operational choices
1CMA's newly revised best=selling.600k Budgetmg:A Gu�de for Locql Governmenu before them in the budget process as
looks at budgeung ,frorn the manager's point af view how to manage conflict they idenufied the overarching "re-
in th�e budgeting pr.ocess, liow to use the'�budget to introduce change, how to sults" they were seeking from [heir in-
link budget decisions :to community n�eds; how'to make �the transition �rom line vestment through the budget process.
item to outcome budgeting A great update on how to use the manager's most BFO empowered the elected officials
powerful tool (2007 hard copy, Item number 43470 $53 ICMA member5, $63 to drive the overall process as they
noninembers) s had not been able to do in the past
ICMA's !Q Report 'Budgeting for Outcomes. Better Results for the Price of The role of the management team
I Goyernm.ent" explores what residents really want and need to keep costs and and employees also changes with
revenues `in bafance: Every community cait learn to ask the questions_ that ens.u�e BFO. A traditional budget process has
�it provides. necessary and valued services at acceptable costs (2005, IQ Report a lot of people involved in developing
hard copy, Item number 43043, $16 95; IQ Report E-Document, Downloadabfe file the budget, but only a few have the
size 2495k, Item E-43220, $14.95). responsibility of making decisions
More information on IGMA pubiications can be viewed.atlGMA's regarding the recommended budget.
The BFO process got hundreds of
Booksfore&Mo�e Web site, at bookstore icma org. No shipping and handling people involved in a meaningful way
charges for downloadable e-documents. Secure ordering is available online, or call. by making specific suggestions for
ICMA's distribution center at 800/745-8780. programs and services to be funded,
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by suggesting innovations and chang-
es that could be implemented to cre-
ate efficiencies, and in making recom-
mendations regarding the programs
and services that would be funded s f o i 6
and those that would not. r�'
OTHER.FUNDS `�26 6M6��
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Don't blame the budget for the finan- 5�NRecreaUon
NatiAreas
cial problems. The ciry's fiscal condi- 2,51116o1f
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tion was serious, and BFO was used as k'�����
a means to address it. Effectivel com-
Y `'��;�r�';�
municating this point often during
the process is essential. The ciry could NBHD
have elected to use other processes to 2006 6eneral Fund
address the fiscal issues it was facing; $13.4M
in our case, BFO was the best fit.
Ciry staff found that, as the BFO
r� O�t1ER�FUNUS �]�r�M
process was being implemented, some 1M Recreahon
employees and to a lesser extent the 2:3M Nat Areas
communiry btamed BFO for the fis- �Ef s Z 6M 6otf r
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cal, operational, and organizational
ECON ��5� t,
changes that had to be made. Staff and
officials had to continuously remind 2007 6ENERAL FUND I
people that change was inevitable; the $14.3M
BFO process was sisnply the tool to
facilitate needed changes.
It Can't be overcommunicated Existing recreation facilifies (City Park Pool, Center and Railway, FPIC, Youth Activity Center, Senior Center,
within your organization why change Mulberry Pool, Pottery Studio, Roliand Moore Racquet Complex, Skate Park facilities, the Farm at Lee MaRi-
nez and the Gardern on Spring Creek)
is needed in the first place. You can' Operations and maintenance of new Northside Center in '07
have employees, elected O{fiClalS, Reduced Parks maintenance (funded by �eneral Fund and Conservation Trust dollars)
Recreational trail development and maintenance
and the public confuse the need for Library Museum and Uncoln Center programs
change with the adopuon of BFO as a Art in Public Piaces Program
Maintenance for cemeteries/memorial parks
process to facilitate positive changes. Natural Areas pubiic improvements
���.���i��i f�Fi� i �1
Don't ask if you don't want to know. Youth Activity Center in 2007 (Gymnasium to remain opeN
Most people love the idea of open and Southeast Branch Library
110nPSt CO1T1111uniCadon. T�le iP.allty O{ '��sting level of publicity/marketing in recreation, cultural services and Library Cable 14 "City Happen-
ings" program
open com121uniCation ]n T11e case of FoTt Library operations reduced by 4 hours per week
Collins turned out to be different from
our initial thoughts. Organizational Figure I. Laxger pie chart shows allocations of the budget to each result.The
culture around communication had �o smaller pie charts show the funding source for the result of improving
been more top-down in the past. BFO cultural, recreation, and education opportunities.Text below shows what is in
opened up the organizauon to a lot of
the budget and what is not.
information, ideas, and thoughts that
were new to a lot of staff inembers. Thinking about how you will address the development review process. Elimi-
Suddenly, there was a tidal wave this is important to consider. naung staff caused great conflict. Fort
of information flowing from xhe front One example of how the com- Collins is much stronger as a result of
lines of the organization regarding munication floodgates opened was a this open dialogue, but open dialogue
ideas for making improvements, proposal that came from our frontline also comes with challenges.
ideas for changes, and so on. This managers to create a one-stop develop-
tidal wave of information was at times ment shop and, in the process, elimi- Our organization is not data driven.
challengi.ng to deal with and brought nate posirions. This recommendation The BFO process makes some as-
into question the role of the employee made perfect business sense and has sumptions that an organization has
versus the role of the manager in deci- since been implemented, but at the time access to quite a bit of operational,
ion ma
kin and bud etin BFO
defr- the fact that this idea was not hatched at financial, and performance data to
s S g
g hel
nitel fostered si nificant employee the management-team level affected de- support the entire process and to p
Y g ions.
c fundin decis
akin strate i
involvement and communication. cLSion making and department roles �n in m g g g
--�ul�Iicrlan.agement.�.J�a�
ICMA.orgfpm i
Y
1
I. One of the most significant revelations got stuck, and were challenged to do
from the BFO process in Fort Collins more than we thought we could.
was how out of date our organizarion
was regarding collecting, tracking, Commitment is the key. Embarlang
I I and analyzing this information. Our on BFO or any change-related process
Ca/endar Events organization is in the midst of design- absolutely requires the unwavering sup-
ing and implementi.ng numerous per- port of the ciry council, ciry manager,
ess forces an o
ani-
For information about ICMA U events formance management and financial- i and staff. The proc rg
Visit icma.org�cmaucalendar tracking processes. zadon to take a long, hard look at itself,
The BFO process revealed some sig- and somerimes what you witl see is not
�..�._�.�,�H az .-��T.
nificant weaknesses in our approach to pleasant. You have to be prepared for
managing organizational performance. this realiry and deal with it openly.
The ciry's budget rystem lacked some Do not start a process like this with-
fundamental funcuonaliry and report- out first committing to systemic, long-
ing tools to aIIocate costs, produce fr- term changes in the organization.
nancial reports based on activity costs,
and carry out other functions. More IT WORKS
important, �he staff members found From the ciry's perspective, BFO is
that many operations lacked perfor- a good tool, but it is just a tooL It is
mance data that would help them un- helping Fort Collins to achieve a much
derstand how much of a service they bigger objective—that is, to be an orga-
produced, its qualiry, and its cost. j nization that demands and consistently
I Part of the BFO process is idenrify- delivers excellence and accountabiliry.
ing performance measures related to For years, Fort Collins has deliv-
programs and activities that are funded ered exceptional service, and it has
I through the process. Staff found that frequently been recognized on "bese
an organizaaonal emphasis on perfor- of" lists for families, seniors, entrepre-
r• i. mance management and data collec- neurs, and others. The days of resting
tion activiaes was needed to better un- on our past record and saying "just
derstand how effectively and efficiendy [rust us" are over.
the ciry is providing services. We are setting clear goals, measur-
ing our performance, and benchmark-
Massive change, obviously, is not easy. ing against other local governments
•.r•
It is uite to say that change is hard, and private sector companies. Staff and
but change really is hard! The BFO elected officials are working in gartner-
process challenged so many aspecrs ship, citizens and employees are more
of our organizauon, our beliefs, and engaged, and local govemment is more
i
our thinking that it was at times open and transparent than ever before.
overwhelming. We will survive the We no longer wield a budget Axe;
organizational, financiai, and opera- we have improved our Aim.
r• tional changes that were implemented
through the BFO pxocess, and we will 1 BF0 is described in the book, rhe
be a better organizauon because of it, Pri.ce of Government: Getting the Results
but it has been challenging work. We Need fn aii Age of Permaraent Fiscal
The long-term benefit of BFO is that Crisis, written by David Osborne and
the Fort Collins staff will have a process Peter Hutchinson, and published by
t that will better allow them to react to a Basic Books in 2004. BFO is also de-
changing environment, foster creativ- scribed in "Budgeting for Outcomes:
iry and innovauon, focus on producing Better Results for the Price of Govern-
a.�. measurable results, and clearly articu- ment," ICMA, 12 Report, February
late our prioriries and our approach to 2005.
warking on these priorities.
Darin Atteberry is city manager of Fort
A guide helps. Fort Collins benefited Colfins, Colorado (datteberry@fcgov.com).
from having an outside voice and Camille Cates Barnett is strategic consulting
guide in this process. We learned director, Pubiic Financial Management Group
about the process, got tips when we (barne�cc@pfm.com),Washington, D.C.
_P_ubiic M.aaagement. �.MaK 2QOZ— i
4
1. Set the Price of Government: how much citizens are
willing to spend.
2. Determine the priorities of government the outcomes
that matter most to citizens, along with indicators to
measure progress.
3. Decide the price for each priority outcome.
4. Decide how best to deliver each priority outcome at
the set price: Create steering organizations to act as
purchasing agents and have them develop "cause and
effect" strategy maps and purchasing strategies.
5. Set outcomes goals and indicators #or each of the
strate ies and ro rams, and make sure the results are
g p g
measured.
6. Solicit offers, then choose vvhich programs and
activities to purchase.
7. Negotiate performance agreements with those
providers, spelling out the key output and outcomes to
be produced, the indicators to be used to measure
progress, the consequences for performance and the
flexibilities granted to help the organization maximize
performance.
s
i
8. Eliminate line items in your budget below program the
program or strategy level; appropriate lump sums for
the results of each strategy and program.
9. Develop full-cost accounting, which attributes all direct
and indirect costs to a program or strategy, so you
know the real cost of each program and strategy.
10. Create a process to review performance against the
targets, in both the executive and legislative branches.
Ideally, this should take place in executive and
legislative branches. Ideally, this should take place in
executive-branch steering organizations and legislative
committees organized to focus on the same outcomes.
11. Use data on results and performance management
to drive improvement in programs, strategies, outputs,
and work processes.
12. When performance dictates it, make changes in the
organization chart, in both the executive and
legislative branches.
�I'
Mission Statement
The Mission of the City of Brooklyn Center is to ensure a
Clean, Safe, Attractive Community that Enhances the
Quality of Life and Preserves the Public Trust
Values Statement
Excellence and Quality in Service Delivery
We Believe That Service To The Public Is Our Reason For
Being And Strive To Deliver Quality Services In A Highly
Professional And Cost-Effective Manner.
Ethics and Integrity
We Believe That Ethics And Integrity Are Foundation
Blocks Of Public Trust And Confidence And That All
Meaningful Relationships Are. Built On These Values.
Visionary Leadership and Planning
We Believe That The Very Essence Of Leadership Is To Be
Visionary And To Plan For The Future.
Fiscal Responsibility
We Believe That Fiscal Responsibility And Prudent
Stewardship Of Public Funds Is Essential For Citizens'
Confidence In Government.
Cooperation and Teamwork
We Believe That The Public Is Best Served When
Departments And Employees Work Cooperatively As A
Team Rather Than At Cross Purposes.
Open and Honest Communication
We Believe That Open And Honest Communication Is
Essential For An Informed And Involved Citizenry And To
Foster A Positive Working Environment For Employees.
Professionalism
We Believe That Continuous Improvement Is The Mark Of
Professionalism And Are Committed To Applying This
Principle To The Services We Offer And The Development
Of Our Employees.
1
Critical Results
2007-2008
Changing Demographics and Increasing Cultural Diversity
will be a community asset
Enforcement of Neighborhood City Codes will improve
City Infrastructure will be mainta.ined and upgraded as
needed
Community members will feel safe and secure as crime is
being reduced.
City's redevelopment plans will proceed aggressively
Financial stability of the city government will be ensured
The Quality of the Existing Housing Stock will improve
Property Taxes will be lowered or mainta.ined
2
7
Result 1 Changing Demographics and Increasing
Cultural Diversity will be a community asset
Key Result Measures:
1.
2.
3.
Strategies/Action Steps:
Provide Recreation Programming That Is Responsive to the
City's Culturally Diverse Populations
Assess Current Programs and Resources
Solicit Input from Diverse Populations Regarding
Recreational Needs
Desi and Im lement Programs
p
Improve Cultural Competency of All City Employees
Expand the Cultural Competency Element of the Joint
Community Police Project to Include All City Employees
Improve the Diversity of the City Workforce
Utilize Multi-Cultural Advisory Council
Take Efforts to Bridge the Language Gaps between Citizens
and Ci Government
tY
Improve Diversity of Work Force
Provide List of Reliable Volunteers for Interpretation
Provide Contracted Interpreter Services
Establish or Adopt a City Cominission to Advise City Staff
and/ Or Council on Better Ways to Improve City
tivel Res ond To Diverse
Governments Capacity to Effec y p
Cultures and To Serve As Means of Attracting Volunteer
Interpreters
Appoint Task Force In Advance Of Considering a
Commission
3
Result #2 Enforcement of Neighborhood City Codes will
improve
Key Result Measures:
1.
2.
I 3.
5trategies/Action Steps:
Centralize the Code Enforcement Programs and/Or
Functions
Establish Single Department Encompassing All Activities
with Single Department Head
Cross Train Employees
Develop Structure for One-Stop Enforcement
Single Point of Contact
Centralize Communications Processes That Accept,
Monitor, and Provide Final Disposition to Code Compliance
Implement Computer Based Recording and Tracking
S stem
Y
Establish Enforcement Hot Line
Implement Citizen Request Management Software
Provide Necessary Fiscal and Human Resources
Necessary to Implement Needed Changes
Asses Capacity of Current Staffing
Establish Performance Standards
Identify Resource Needs I.E.
Staffing, Tools, F�nding
s
4
7
Result 3 City Infrastructure will be maintained and
upgrade as needed
Key Result Measures:
l.
2.
3.
Strategies/Action Steps:
Continue Long Range Capital Improvement Program Using
Life Cycle Approach
Inventory All Infrastructure Assets and Determine Current
Condition of Infrastructure Items
Develop a Comprehensive Approach for CIP Planning To
Include All Infrastructure Capital Assets Including
Technology Infrastructure
Conduct Life Cycle Analysis of Larger Capital Equipment and
Infrastructure Items
Determine Replacement Schedules for Capital Assets
Revise CIP Annually To Reflect Revisions and Development
Program
Asset Management for Public Buildings
Develop a Proactive Preventive Maintenance Program
Schedule Programmed Replacement of Building Components,
Including Technology Infrastructure
Estimate Costs for Preventive maintenance standards And
Routine Equipment Replacement Programs
Develop Comprehensive Budgets for Replacement of Building
Components
Community Input- Changing Demands and Demographics
Receive Public Input Regarding Changing Demands for
Services
Work With Organizations and Advisory Bodies to Receive
Comments Regarding Priorities for Public Recreational and
Other Services
Identify F�,inding Levels and Sources
5
T
Perform a Cash Flow Analysis for Proposed CIP Projects to
Determine the Adequacy of Current Funding Sources
Adjust Revenue Sources to Fund Maintenance and
Replacement of Capital Assets or Determine the Extent of
Capital Assets That Must Be Decommissioned
Decommission Capital Assets W/ O Continued Community
Value
I
6
Result 4 Community members will feel safe and secure
while crime is being reduced.
Key Result Measures:
1.
2.
3.
Strategies/Action 5teps:
Implernent Problem Oriented Policing Strategies Through
The Collection And Analysis Of Data On Patterns Of Crime
And Disorder For The Purpose Of Focusing Crime
Reduction Efforts.
Crime Hotspots
Livability Offenses (Graffiti/Littering/Panhandling/Etc...)
Quality Of Life Offenses (Code/Traf�c/Noise/Etc...)
Juvenile Offenses (Curfew/Truancy)
Involve Community In Policing Efforts Through Community
Partnerships In Order To Provide For Successful
Communication Of Information, Problem Solving, And
Sharing Of Responsibility For Action And Decision Making.
Neighborhood Watch
Business Watch
Apartment Resident Managers Assoc.
Joint Community Police Project
Neighborhood Meetings
Assure Police Accountability to Keep the Department and Its
Officers Functioning properly and focused on the
Department's Mission, Values and Goals.
Weekly Crime Reduction Strategy Meeting
Sector/ Neighborhood Police Teams
Expand Enforcement Tools
7
Chapter 12 9-13 to Cover All Rental Properties.
Administrative Fines
Add New And/Or Redirect Existing Resources To Achieve
Needed Focus Through A Call Management Study To Identify
Task Accomplishment In The Most Effective And Ef�cient
Manner As Possible.
Provide Analysis Of Current Crime Levels To Establish
Baseline To Develop Improvement Objectives.
Prioritize Criminal Activity Focus and Response Efforts
Scientifically Survey Community to Understand Citizen
Concerns and Perceptions About, Crime, Safety and Security
and To Help Establish Base Line for Future Reference
Implement Media Relations Strategy to Help Citizens
Understand Issues in Thorough Manner
Match Resources with Demands and Council Expectations
Facilitate Multi-Discipline and Multi-Community
Approaches To Addressing Increases in Criminal Activity
Expand Collaborative Efforts as Appropriate
s
8
Result 5 City's redevelopment plans will proceed
aggressively
Key Result Measures:
l.
2.
3.
Strategies/Action Steps:
Assessment of Current Status of Redevelopment Efforts
and Needs
Special Work Sessions If Needed
Establish Vision and E�ectations
Short Vs. Long-Term
Create a Vision Statement
Potential Redevelopment Projects
I-694
Brookdale
57th And Logan
Opportunity Site
Hotel
Prioritize Efforts
Identify and Select Projects to Purse Based On a Set of
Policy Goals/Expected Outcomes
Match Opportunities with Resources
Analyze Redevelopment Infrastructure Needs
Assess Conditions and Availability of Public/Private
Infrastructure and Facility Services and Compare to
Redevelopment Needs/Expectations
Identify Resources and Tools Needed For Redevelopment
Catalogue Available Economic Tools/Uses and Limitations
Identify Redevelopment Tools Used and Unused By City Of
Brooklyn Center
Facilitate The Construction Of Unique To B.C. Infill Housing.
9
T r 4
Result 6 Financial stability of the city government will be
ensured
Key Result Measures:
l.
2.
3.
5trategies/Action Steps:
Provide Sound Professional Fiscal Management
Hire and Retain Quality Staff and Provide Ongoing
Professional Development
Diversify City Controlled Revenues Sources
Add Revenues That Meet Positive Cost-Benefit
Thresholds
Legislative Support
Support the Elimination of Unfunded Mandates
Support Improved Reliability of Local Government Aid
Mainta.in Contingency F�.inding
Annually Budget for Contingency In Accordance With
Policy
Improve Long Term Capital Planning
As per Goal Number (3) Three
Foster Redevelopment
As per Goal Number (5) Five
Maintain/Improve Bond Rating
Asses Factors Related To Current Bond Rating
Develop/Implement Long-Term Strategy to Improve Bond
Rating
Align City Budget with Strategic Goals
Develop/Implement Program Budget Process Based On
Strategic Goals
10
ali of the Existin Housin Stock will
Results #7 The u g
Q tiY g
improve
Key Result Measures:
1.
2.
3.
Strategies/Action Steps:
Support Ideas for Redesigning Ramblers
Booth at Northwest Home Remodeling Fair
Provide Design Guide for Rambler Owners
Promote Strategic Advantages of Buying a Home in Brooklyn
Center
Partner with Civic Organizations by Providing Valid
Information and Engaging In Dialogue
Encourage Home Ownership
Appeal to Younger Generations
Establish Home Ownership Policy Goals
Direct Potential Owners to Affordable Financing
Adopt Point Of Sale Ordinance
Review Point Of Sale Options and Provide Alternatives to
Housing Commission for Review
Build Public Support for Ordinance
Inventory Existing Condition of Current Housing Stock.
Educate Residential Property Owners (Especially First Time) On
How To Protect Property Values Of Homes.
Enforce Rental Licensing On Detached Single Family Residences
Eliminate Illegal Duplexes
Improve/Maintain Public Infrastructure /Facilities in Residential
Neighborhoods
Pro ams Usin
Develop and Implement Housing Preservat�on gr g
15% Housing TIF Funds to Achieve Goals
11
I
I.E. Establish Revolving Loan Fund
icate To Public Ava.ilable Home
Catalo e and Commun
Ownership Resources
Facilitate Re-Establishment of Welcome Wagon
Host Realtors Forum
Facilitate Brookdale Mall Redevelopment
12
�III
r
Goal 8 Property Taxes will be lowered or maintained
Key Result Measures:
l.
2.
3.
Strategies/Action Steps:
Increase the Tax Base
Facilitate Redevelopment of Declining Industrial and
Commercial Properties
Facilitate New Residential Development and Encourage
Upgrades of Existing Housing
Facilitate New and Expansion of Commercial and
Industrial Businesses
Resist Buying Private Properties
Establish a Positive Cost-Benefit Determination before
Considering Acquisition of Private Property
Revisit Eminent Doma.in
Support and Encourage Legislative Amendments That Will
Improve the City/EDA Authority to Foster Redevelopment
Using Eminent Domain
Communicate Effect of Eminent Domain on City to
Legislators
Early Termination of Tax Increment Finance Districts.
Annually Review Status of TIF Districts to Assess the
Cost-Benefit of Early District Termination
Terminate Districts at the Earliest Prudent Date
Terminate Parcels within Districts Early When Prudent
Use Existing Resources Most Efficiently
Adopt Best Practices for Service Delivery
Adopt Quality Management Practices
Process Improvement Tools and Teams
Council Prioritization for the Use of Available City Resources
Establish Policies Describing Resource Use Priorities
13
a
Take Advantage of Grant Opportunities on a Selective Basis
Support Legislative Efforts
Stabilize and Increase LGA
To Allow Favorable Property Tax Reform Oppose
Unfavorable Property Tax Reform
Consider Life Cycle Cost of Expenditure Decisions
14