 Financial Planning Tool  Legal Document  Managerial-Operational Guide  Communication Device-To Lots of People  Public Policy-Statement of Priorities From My Vantage Point…

Line-Item Budgeting -Lists Detailed Expenditure Categories Program Budgeting -Focused on Program’s Objectives Performance Budgeting -Focused on Efficiency/Effectiveness Zero-Based Budgetin g-All Expenditures to be Justified Each New Period

More Restrictive Financial Environment Vulnerable to Periodic Shocks

Look in the Mirror and What Do You See?

Previous ApproachNew Approach Approach IncrementalOutcome Oriented Focus Add/SubtractIdentify Outcomes and Develop Strategies Submission Justification of needsOperating Plan with results to be achieved for a cost Performance Focus Budget numbers and workload indicators Organizational Effectiveness and Efficiencies Leader’s Role Choose cuts/additionsChoose Priorities/Results OutcomeReactive ApproachProactive Approach

Line-Item Budgeting -Lists Detailed Expenditure Categories Program Budgeting -Focused on Program’s Objectives Performance Budgeting -Focused on Efficiency/Effectiveness Zero-Based Budgetin g-All Expenditures to be Justified Each New Period Priority-Based Budgeting

Jeff-What’s So New About Priority Driven Budgeting? Possible to do Annually Creates Structure for Linking Spending to Outcomes Logical Method for Prioritizing Programs Identifies “Trade-Offs” Avoids Gimmicks (Across-the-Board Cuts) Promotes Innovation

Two Simple Questions to Ask Ourselves… 1.What is the acceptable price of government? 2.What matters most to our citizens?

What is Acceptable Price? What are the Priorities?

What is Acceptable Price? What is the Tax Burden? Sales Tax Property Tax Overlapping Fees for Service Utility Rates User Charges

What are the Priorities? Goals and Objectives Establish Outcomes Costing of Services Measure Effectiveness

What is Acceptable Price? What are the Priorities? Constituent Contact Surveys Focus Groups Interactive Exercises Reaching Out…

Need to Establish Some Roles Elected Body City Staff

What is Acceptable Price? What are the Priorities? Need to Create a Marketplace Buyers Sellers

The Steps to Success… Set the Price for Government Determine Priorities/Results Identify Strategies Agree on Progress Measures Take Offers Allocate Resources

Economic Development Invest in Workforce Preserve Existing Assets  Strengthen Our Neighborhoods 17

18 Safety and Security Maintain Standards Focus on Local Improvements Public Awareness

19 Safety and Security Maintain Standards Focus on Local Improvements Public Awareness Community Works Program-$1.0 million Residential Street Overlay-$1.5 million Park Playground Improvements-$500,000 Neighborhood Grant Program-$100,000 Block Watch Program - $100,000 Community Policing - ??? Promotion Efforts - $340,000 Code Compliance-$450,000 N’hood Stabilization-$1.0 million N’hood Pride Pgm-$100,000

Look in the Mirror and What Do You See? Questions to Ask Ourselves 1.What is the acceptable price of government? 2.What matters most to our citizens? 3.How do we know if we were effective?

MeasureEstimate Workload Indicators Number of Police Priority Calls33,946 Number of Lane Miles Maintained548 Revenue Generated-Adult Sports Program$420,000

MeasureEstimate Workload Indicators Number of Police Priority Calls33,946 Number of Lane Miles Maintained548 Revenue Generated-Adult Sports Program$420,000 Performance Measures Response Time-Priority I Calls7.05 Minutes Cost per Lane Mile$42,506 Adult Sports Cost Recovery55%

Peoria’s FY 2012 Budget Approach Be Strategic Engage the Organization Not All Services “Created Equal” How Much Does it Cost? What’s the Acceptable Service Level Performance Matters Frank Fee Facts Preserving Our Assets Continual Updates to Leadership Financial CIP Performance

Ask Yourself… What are our Priorities? Council Goals Organizational Strategic Plan Citizen Survey Legal Requirements General/Master Plans Financial Reality Workforce Considerations What is our Game Plan? Mission/Vision Alignment with Priorities Key Functions Costing of Services Assessment of Conditions Outcomes, Goals and Objectives How are we Doing? Performance Management Develop Outcome Measures Verify and Validate Data Track Performance Use Data to Make Decisions

Our FY 2012 Budget Approach Be Strategic Engage the Organization Not All Services “Created Equal” How Much Does it Cost? What’s the Acceptable Service Level Performance Matters Frank Fee Facts Preserving Our Assets Continual Updates to Leadership Financial CIP Performance

Thank You!