Government finance officers: Leading the community through - - PowerPoint PPT Presentation
Government finance officers: Leading the community through challenging financial times 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,
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 $85 billion, according to a survey by the National League of Cities, because of slumping revenues from property taxes and sales taxes and reduced support from state governments.
deteriorating financial condition
hurt long-term financial condition
term solution
5
cyclical deficits
problem
citizens
6
7
Deficit ($’s millions) 17.6 26.3 33.1 38.5
8
accountability through transparency
and future years in capital plan
vacancy bank
9
– Pension & Benefits – Cellular devices – Publications, benefits, training – Temporary Labor
– Buildings – Vehicles (anti-idling policy, automatic vehicle locators)
10
usage
– Printers, computers and supplies
11
– Purchasing – Working with non-profits
utility
12
used to fund ongoing expenses
risk
13
future obligations
defer compensation
financial problems
– Programs or wages
Across the Board Cuts Address $14.5 Billion Shortfall
approach spreads reductions as evenly as possible so no single program gets singled out.”
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.”
City of Savannah
General Fund
Police Fire Public Works Public Development Leisure Services Subsidies
E-911 Fund Water Fund Enterprise Funds Special Revenue Funds Sewer Fund Parking Fund Sanitation Fund
Residential Refuse Refuse Disposal Recycling Street Cleaning Commercial
Civic Center Fund HazMat Fund Community Development Fund Internal Services Fund
Vehicle Maintenance Information Technology Over 80 Funds
Property Taxes 36% Sales Tax 23% H/M Tax 3% Other Taxes 9% User Fees 14% All Other 15%
City of Savannah Financial Update
August
2009
City of Savannah Financial Update August 2009
$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
Projected $2.7 million draw from Sales Tax Stabilization Fund
$0 $5 $10 $15 $20 $25 $30
YTD Target YTD Actual
Millions
City of Savannah Financial Update
August 2009
Projected to end year $2.3 million under budget
$0 $5 $10
YTD Target YTD Actual
Millions
Revenue 09 Projected Deficit Trend Interest 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 Financial Update
August 2009
M & FS 5% Parking 2% SCMPD 25% Fire 9% Public Development 6% W & S 22% Leisure Services 9% Facilities Maintenance 7% Sanitation 9% Other 6%
City of Savannah Financial Update August 2009
$0 $50 $100 $150 $200 $250 $300 $350 Millions
Other Interfund Capital Outlay Debt Commodities Outside Services Personnel
City of Savannah Financial Update July 2009
City of Savannah Financial Update
August
2009
$0 $10 $20 $30 $40 $50 $60 $70 $80 YTD Target YTD Actual
Millions
Projected to end year $4.8 million under budget
City of Savannah Financial Update
August
2009
$0 $1 $2 $3 $4 $5 August Overtime Target August Actual
Millions
Projected to end year $855,000 over budget
City of Savannah Financial Update
August
2009
First time in eight years Police has not exceeded
0.0 0.5 1.0 1.5 2.0 2.5 3.0 October YTD November YTD December YTD
Millions
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 Police Fire W & S Sanitation M & FS Leisure Srvs Fac Mant Pub Dev
but below last year actual
City of Savannah Financial Update
August 2009
$0 $400,000 $800,000 $1,200,000 $1,600,000 YTD Target YTD Actual
Projected to end year $250,000 over budget
134,146 Gallons 134,146 Gallons 126,970 Gallons 126,970 Gallons
Account for 97% of increase Reduced unleaded fuel by 1,095 gallons
Revenue 09 Projected Year-End Trend Gasoline $ (1,190,000) Diesel (1,245,000)
City of Savannah Financial Update
August 2009
City of Savannah Financial Update
August 2009
fund & $1.8 million from HTRG
Firefighters, Police To Work 36-Hour Weeks POSTED: December 2, 2008 ATLANTA -- 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
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
City of Savannah Financial Update Second Quarter 2008
Sales Tax Declines for Two Straight Years
No growth in 2008 property tax revenue…
City of Savannah Financial Update Second Quarter 2008
City of Savannah Financial Update Second Quarter 2008
City of Savannah Financial Update Second Quarter 2008
Harvard Business Review July-August 09
Focus on Outcom es Com m unity Perspective
Low High Low High
I nput Budget Output/ Outcom e Reporting Departm ent Outcom e Budgeting Budgeting for Outcom es ( BFO)
rising costs, increasing demand)
citizens don’t receive results for the taxes they pay
price citizens are willing to pay
shift costs to next generation
maintenance
spending to outcomes
prioritizing activities and programs
innovate
cuts
“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
does not make it a compact; it makes it a
from the ground up.”
Seattle Times editorial, Nov. 17, 2002 on Washington State’s use
Choose priorities of government Create requests for results Allocate funds to priorities Establish the price of government Invite offers from sellers Rank the
Decide what to buy Present the Outcome Budget
64
– Surveys – Focus groups – Internet surveys
– Vision or priority statements – Strategic plans
65
Mesa County Citizens Priorities
Mission Statement In 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. Slogan Mesa County—Creating a community
with a focus on the future. I want Mesa County to manage and 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
Savannah will be a safe environmentally healthy and economically thriving community for all its citizens
P u b l i c S a f e t y N e i g h b
h
V i t a l i t y High 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
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
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
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 Health & Environment Culture & Recreation R e s u l t s T e a m s E f f i c i e n c y T a s k F
c e s Mayor & Aldermen
Customer Service Coordination Stormwater Utility
69
game)
to 100%, and that will not be enough.
– 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 become economically 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
Self-sustaining wage rate • Unemployment rate
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:
I want to live in a community that promotes health through good infrastructure while preserving the environment for future generations
Health & Environment
I want a fiscally
responsible, accessible and responsive government that maximizes use of public resources for services I need.
Primary Factor 1: Leadership Primary Factor 3: Citizen Engagement and Customer Service Primary Factor 2: Fiscal Responsibility Primary Factor 5: Public Resources Management Indicators:
Primary Factor 4: Human Resources Management
High Performing Government
City of Savannah / Department Name / Title of Presentation
76
Culture & Recreation Request for Result
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
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
– Ensure public infrastructure is maintained at a “standard condition” level
78
agencies) developed responses to the Requests for Results
contribute to achieving the desired results - a performance commitment at a certain price
79
specific price.
new, innovative practices.
historic funding levels
80
Enforcement
Enforcement
Inspections
PD
Program
ADA
maintenance
Implementation
Maintenance
Documentation Project
81
can be “excellent”, 5 “very good” and 5 “good”)
revenue sources
when money runs out
with suggestions for improvement
82
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)
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
Score Bob Rochelle Willie Stephanie Charles Joe Chris 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
Score Bob Rochelle Willie Stephanie Charles Joe Chris 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
E = 3; V = 2; G = 1
86
86
87
Spokane Example: Buying Learn and Grow Offers
88
Purchases - Keeps and Cuts
(Washington State)
I want to be safe and feel safe from crime, fire and other hazards anywhere in the community.
Maintained Infrastructure
Practiced Responders
Warning Systems
Cooperation Primary Factor: Prevention Primary Factor: Responsiveness Primary Factor: Preparedness Primary Factor: Enforcement
Indicators:
for Emergencies
neighborhood)
from Fire and Other Hazards Reduce Risk Increase Protection
Public Safety Results Team Revised 21 April 2009
Other Hazards include natural & man-made disasters, structural hazards, vehicular & pedestrian hazards, and mass public gatherings.
Public Safety
Office
Rank Offer Number Offer Name Amount 1101-4210-01 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
26101-2104-04 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
Cuts Final 1st Round Cuts
and Work Ventures from 2009 to 2010
application of Dept of Labor stimulus grants
street
with subsidy from the City during transition of service provision responsibility
and Fire Stations
with 311
97
(e.g. performance measurement, citizen input)
don’t choose by titles
98
management?
that it is an art not a science?
99
to results
between departments increased substantially
budget process
Nicolo Machiavelli
101
A Sampling of BFO Governments
States
– 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 –
– Grand Rapids, MI – Redmond, WA – Savannah, GA – Roanoke, VA
Counties
– Snohomish, WA. – Mesa County, CO – Polk County, FL – Jefferson County, CO
Harvard Business Review July-August 09
103
www.icma.org
Peter Hutchinson
Package of Tools and Coaching provided by GFOA
– Step by Step Web-based Guide – More than 125 documents – templates & samples – Coaching