Agenda Date: 07/09/2019
Subject:
Title
Quarterly Priority Based Budgeting Update
Body
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Presented By: |
Tiffany Hooten, Finance Director |
PURPOSE:
Staff is updating council quarterly on the progress of Priority Based Budgeting (PBB).
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director
Samma Fox, Assistant to the City Manager
Additional Presenter(s): N/A
SUMMARY:
PBB was initiated in 2018 with the help of contractor Resource X. After being noted as one of the fastest implementers, city staff continues to pave the way for PBB. Using Resource X’s Blue Print, staff went a step further and created the PBB Blue Print Program Review template. Littleton’s Blue Print template has been shared with other PBB implementers and has been recognized as a best practice for PBB implementers.
With initial implementation complete, staff has focused on further defining the program inventory and system setup, and implementing the PBB Blue Print. During 2019, departments are reviewing 2-3 programs using the PBB Blue Print and Program Review template. The Blue Print helps provide guidance and continuity as departments review their programs. Expected outcomes of this review are discussions of efficiencies, sourcing opportunities, service levels, and funding options.
Phase 1 included assessing program needs and indicating potential changes by allowing the departments to describe the program, meet with internal staff to identify current service levels and/or key performance indicators, assess the need of the program and understand challenges if the program was discontinued. In addition, departments were tasked with identifying potential opportunities such as outsourcing/insourcing, increasing efficiencies, adjusting service levels, and identifying potential revenue opportunities. This phase was completed by departments in April.
The city is in Phase 2 of the PBB program review which asks departments to contact other entities to gather information on potential partnering opportunities and best practices, as well as explore opportunities for changes within the program. This phase is expected to be completed by August 31, 2019.
Phase 3 will be the final phase of the PBB Blue Print review and will include implementation of changes identified through the PBB program review process. Viable opportunities will be implemented or have implementation plans by November 30, 2019.
A more detailed discussion on PBB is scheduled for August 27. This meeting will focus on connecting a few programs to the 2020 budget process with discussion of service levels and recommendations for aligning resources. Staff will also review how additional programs will be incorporated into the 2020 budget process via program highlights which will provide information on how the program aligns with basic program attributes (mandate, reliance, cost recovery, demand, population served) in addition to where the program falls in the PBB quartiles (how closely each program aligns with goals). This information, coupled with program costs by category, will allow further discussion of service levels during the September budget meeting, with council recommending programs to review in the future.
Staff will work with departments to update the PBB system and align the results with the Envision initiatives such as the 2040 Report, Comprehensive Plan, and Transportation Master Plan. PBB is continuing to evolve as staff evaluates the process.
PRIOR ACTIONS OR DISCUSSIONS:
PBB has been discussed throughout the year with the most recent quarterly update on March 26, 2019.
ANALYSIS:
Staff Analysis
PBB is part of a larger leadership framework that provides clarity of purpose for our community and the city organization. The process starts and ends with the Community & council.
Community & Council => Strategic Planning => PBB => Service Plans => Individual goals => Measurement, review & analysis => Process improvement => Community & Council
Council Goal, Objective, and/or Guiding Principle
PBB directly relates to council’s Goal 2 of Financial Sustainability by prioritizing existing programs and services for efficient and effective use of resources.
Fiscal Impacts
N/A
Alternatives
N/A
STAFF RECOMMENDATION:
N/A