CITY COMMISSION AGENDA ITEM

Department:	City Manager’s Office		Commission Meeting Date: Oct. 16, 2018
Staff Contact:	Danielle Buschkoetter, Strategic Projects Manager
Recommendations/Options/Action Requested:
Approve the results and definition matrix to be used in the implementation of priority-based budgeting, if appropriate.
Executive Summary:		On March 7, 2017, the City Commission adopted a strategic plan which included seven (7) Critical Success Factors and eight (8) priority initiatives. One of those priority initiatives was to develop a plan to implement priority-based budgeting and enhance communication in the annual budget process. On October 2, 2018 the City Commission approved a three-year agreement with Resource Exploration, LLC (ResourceX). Throughout the next year, they will assist staff with the implementation of priority-based budgeting. There are five (5) general steps to implementing priority-based budgeting. First, staff have identified what programs the City provides in all City departments. Second, staff will identify the costs associated with providing each program. Third, departments will score their programs against a matrix that has been developed based on the City’s strategic plan. Fourth, peer groups will review department scores to ensure consistency across all departments. Fifth, there will be a final review before bringing forward the results to the City Commission. It is anticipated that the results will be available prior to beginning the 2020 budget process. Once the scoring is complete, staff will bring forward a report card of all existing programs. Each program will be placed in one of four quartiles. The goal of this report card is to show what programs we currently have in place and how they score against our results and definitions matrix (which is based on the strategic plan). This will give the Commission an opportunity to react to how programs, and ultimately their corresponding costs, align with the Commission’s stated priorities. Staff is recommending the Commission approve the matrix that will be used to score each program. Staff worked with ResourceX on developing the matrix based on the City’s strategic plan and best practices of other communities that have implemented priority-based budgeting.
Strategic Plan Critical Success Factor		Effective Governance/Professional Administration Safe, Healthy, and Welcoming Neighborhoods Innovative Infrastructure and Asset Management Core Services Sound Fiscal Stewardship Collaborative Solutions Economic Growth and Security
Fiscal Impact (Amount/Source):		There is no financial impact.
Attachments:		Results & Definition Matrix ResourceX Contract (Approved Oct. 2, 2018)

Reviewed By: (for CMO use only)

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