Priority Based Budgeting Update Board of County Commissioners Workshop December 10, 2012

22 Workshop Agenda  Introductions  Brief History/ Overview  Budget Challenge Results  Priority Based Budgeting Model Reveal Priority Based Budgeting Workshop, December 10, 2012

33 Overview  County Challenge: Balance an ongoing $3 million budget shortfall over the long term, while allocating limited financial resources to achieve the community’s priorities  Actions to Date:  Eliminated approximately 65+ FTE (since 2008)  Many more positions currently vacant  Employee salary and benefit reductions ( )  3-year contracts with employees to stabilize costs  Partnered with other agencies to stabilize revenues by restructuring property tax rates (since 2011)  Formed regional partnerships and outsourcing of services (since 2010) Priority Based Budgeting Workshop, December 10, 2012

4 Overview Priority Based Budgeting Workshop, December 10, 2012

55  County is closing the budget gap, but challenges continue:  $17 million backlog in road maintenance  Annual funding for road maintenance inadequate  Water and storm water infrastructure needs  Goals:  Align County planning efforts  20-year Master Plan, 3-5-year Strategic Plan, 5-year Capital Improvement Plan, 5-year Financial Plan and annual Budget  Implement Priority Based Budgeting to shift the conversation from across the board budget cuts to focus on value to the community Overview Priority Based Budgeting Workshop, December 10, 2012

66 Budget Challenge  During the month of November, residents were given the opportunity to allocate $500 among the county priorities.  They could take a 5 minute or 15 minute version.  5 minute version allowed residents to allocate between the 6 priorities  15 minute version allowed residents to allocate among the sub results of each priority also  They could add a priority or sub result of a priority if their priority was not listed  We tracked the participants by master plan area, their comments and priorities, but we did not track their names or personal information Priority Based Budgeting Workshop, December 10, 2012

77 Letting residents know about the challenge Newspaper articles, County Manager’s running commentary, paid advertisement, 4 public workshops, s, face book and word of mouth Priority Based Budgeting Workshop, December 10, 2012

88 Budget Challenge Results  Del Ray Beach, FL (pop. 61,000 ) - 11 responses  Wellington, FL (pop. 57,000) -15 responses  Douglas County (pop. 48,000)- 86 responses (over 300 read the challenge)  23 – short version responses  63 – long version responses  Includes 13 senior high school students from Sierra Lutheran High School  Since 2009, only 4 – 6 residents participated in annual county budget workshops Priority Based Budgeting Workshop, December 10, 2012

99 Summary of Responses Priority Based Budgeting Workshop, December 10, 2012

10 Summary of Responses Priority Based Budgeting Workshop, December 10, 2012

11 Responses By Area Surveys were summarized by master plan areas Priority Based Budgeting Workshop, December 10, 2012

12 Details of long version responses, with sub results Majority of participants chose the long version (63 out of 83 responses) Priority Based Budgeting Workshop, December 10, 2012

% 17.53% 19.72% Proposed Sub results: Invest in capital improvement projects within the county for the benefit of all citizens (0.36%) Develop a better public transportation system including buses and trains to/from Carson City/Reno to reduce individual fuel cost and increase efficiency. (0.38%) 15.67% 15.52% 14.50% Economic Vitality Priority Based Budgeting Workshop, December 10, 2012

% Proposed Sub results: Health natural resources are well planned and utilized water, air, land and vegetation Without healthy natural resources the other categories won't have a sound foundation to build on. (1.80%) Stop approving projects that develop open natural spaces in Tahoe Douglas. Practice what you are preaching here (0.90%) Maintain and develop community services including the library and senior center (0.45%) 13.26% 22.69% 13.96% 14.95% Preservation Priority Based Budgeting Workshop, December 10, 2012

15 Proposed Sub results: Proper Maintenance and cleaning of the Douglas County Public Tennis Courts (6.72%) Accept and repair paved roads/ pave dirt roads with a special road fund from ad valorem tax and developer fees (0.91%) Invest more in local schools and pay teachers more (0.34%) 27.96% 12.08% 21.55% 11.23% 19.21% Infrastructure Priority Based Budgeting Workshop, December 10, 2012

16 Proposed Sub results: Provide high quality fire and ems services, including fire prevention, public education and support of volunteer firefighters and community volunteers (0.67%) 36.56% 18.71% 14.00% 11.99% 18.07% Safe Community Priority Based Budgeting Workshop, December 10, 2012

17 Proposed Sub results: Review/ discuss with the last new 50 businesses in Douglas County. Find out what perceived and real barriers exist within the County’s regulations that limit, delay or exclude businesses from opening their doors here. Likely to be in conjunction with the Economy. (0.74%) 26.39% 20.49% 20.12% 32.26% Managed Growth Priority Based Budgeting Workshop, December 10, 2012

18 Proposed Sub results: Provide for an annual emergency fund with a of final budget (1.11%) Provide opportunities to local residents first before hiring from other areas (0.25%) 19.59% 19.05% 10.68% 16.17% 20.93% 12.22% Financial Stability Priority Based Budgeting Workshop, December 10, 2012

19 Sampling of Comments  #1 priority should be the proper maintenance of streets/roads.  Thank you for the opportunity to put in our two cents.  We need to stop building new houses that are sitting open and we should be fixing our falling old buildings on 395 and make the main street as beautiful as it was before all the building  First moving here, I loved the open area and the fresh air and all the wonderful places to explore  I believe that a safe community is very necessary for preserving the life and vitality of our small towns.  Government is best that governs least  Quality of Life should be its own category  I think that our local government is consistently doing what is best for the county as a whole  I would invest in something tangible, something that has measurable results.  While it is important for the County to provide for public safety, good roads, and protect our environment, please do not forget the things that enrich our lives and minds -- libraries, parks, education  Utility users should bear the full cost of water and sewer delivery, not taxpayers. Please see handout for all comments in their entirety Priority Based Budgeting Workshop, December 10, 2012

20 Priority Based Budgeting Model Priority Based Budgeting Workshop, December 10, 2012