PALM BEACH COUNTY BOARD OF COUNTY COMMISSIONERS FY 2010 BUDGET DEVELOPMENT Training for budget development staff 8:30 – 10:00 a.m., January 7, 2009 Clayton E. Hutcheson Ag Center Exhibit Hall A

Today’s Agenda  Zero-base and Modified Zero-base Budgeting  FY 2010 Target Budget  Budgeting to support Goals and Objectives  Line-item Analysis  New in FY 2010  Budget Development Schedule  Management Team Budget Package

Budget Development Approach  Incremental (2007) Add incremental increases to current expenditure level Add incremental increases to current expenditure level Base budgetBase budget SupplementalSupplemental Operating Operating Capital Capital Assume current year expenditures are justifiable Assume current year expenditures are justifiable

ZERO-BASE  Zero-Base Budgeting Assumes current year spending is unjustified Assumes current year spending is unjustified Starts the budget development process at a “base” of zero Starts the budget development process at a “base” of zero Based on decision packages Based on decision packages Systematic logical approach based on prioritized programs and objectives Systematic logical approach based on prioritized programs and objectives Matches spending levels to services performed Matches spending levels to services performed

MODIFIED ZERO-BASE  Modified Zero-Base Budgeting Starts the budget development process at a “base” higher than zero Avoids documentation of personnel and expenditure requirements considered necessary Based on decision packages Matches spending levels to services performed Systematic logical approach based on prioritized programs and objectives

Budget Development Approach  Modified Zero-Base (2010) “Target” is 90% of FY 2009 adopted net Ad Valorem funding (after absorbing COLA increases and annualized increases in certain line item operating costs that are uncontrollable) For some departments, non-personal services “target” budget may be significantly less than FY 2009’s

FY 2010 Budget Line Item Analysis Performance Measures Budget

Linking the Elements of a Performance Program Mission Statement Objectives Performance Measures Linkage reinforces the organization’s core focus!

Mission Statement The United Community organization is a 501 C-3 human service agency providing emergency assistance, daycare, social services and recreational activities for low-income children and families at risk in inner city Atlanta, Georgia. Objective To increase low-income children's participation in recreational activities by 10% through improving public awareness via church groups and neighborhood associations. Performance Measures ♦ Percent increase of children enrolled in recreational activities ♦ Cost per child enrolled in recreational activities ♦ Number of children enrolled in recreational activitiesper recreation specialist ♦ Percentage of participants who responded "very satisfied" to a survey rating recreational activities

 Workload - activity volume  Efficiency – amount of service per resource  Outcome – results of actions (change that has occurred) A Variety of “Types” to Indicate Performance We served 3,200 nutritious meals ! 580 people are enrolled in our meal program We served 320 meals per staff person. Our total cost to provide meals is $3.45 per meal! The malnutrition rate decreased by 20% ! Program enrollment is up 35%

Develop proposed operating budget that supports goals and objectives 1.Review goals and objectives 2.Review performance measures relating to achievement of goals and objectives 3.Review historical methods of achieving goals and objectives 4.Review historical costs of achieving goals and objectives

Develop proposed operating budget that supports goals and objectives 5.Analyze line-item operating budget within each program to determine required funding levels - Historical trends, benchmarking - Identify opportunities to increase efficiency through changes in operations and adjusting workloads

Develop proposed operating budget that supports goals and objectives 6.Analyze impact of proposed budget cuts on achievement of goals and objectives -How will performance be affected? Workload measures Efficiency measures Outcome measures

Budget Reduction Strategies  Cost, Purpose, Alternative, Effect on Performance, Consequences, Benefits

Budget Development  Personal Services SBFS loaded with personal services SBFS loaded with personal services Salaries include 2.5% COLA, effective 10/1/09, non- bargaining unit employees Salaries include 2.5% COLA, effective 10/1/09, non- bargaining unit employees  Operating Expenses Each line loaded with adopted FY 2009 budget Each line loaded with adopted FY 2009 budget  Capital Outlay Each line loaded with adopted FY 2009 budget Each line loaded with adopted FY 2009 budget Included in base Included in base  Budget Reduction Strategies Cuts included on separate forms for complete decision package Cuts included on separate forms for complete decision package

Budget Development  Graphics & ISS Included in General Fund Included in General Fund General Fund departments should not include these charges (objects 4703, 3413, and 3414) General Fund departments should not include these charges (objects 4703, 3413, and 3414) Complete Resource Utilization forms to request level of service necessary in FY 2010 Complete Resource Utilization forms to request level of service necessary in FY 2010 Any requests during the year which exceed the agreed upon level of service will require a budget transfer Any requests during the year which exceed the agreed upon level of service will require a budget transfer Consolidate all information technology budget into separate unit Consolidate all information technology budget into separate unit

Budget Development Schedule  Additional time given to County departments to develop their FY 2010 budgets and enter into BRASS BRASS/BIM available today BRASS/BIM available today Department Due Date Department Due Date March 6March 6 Department Meetings with County Administrator Department Meetings with County Administrator April 6-17April 6-17

Forms for 2010  Initial BRASS budget submission includes NO new forms  Management Team Budget Package is due with Budget Submission  Organizational Chart including each position and vacancy status and identifying position slated for elimination

Management Team Budget Package  Program Budget Form format used as basis for FY 2010 Management Team Budget Package  FY 2010 target is 90% of the FY 2009 adopted net Ad Valorem funding level Budget Reduction Strategies must be prioritized by department Budget Reduction Strategies must be prioritized by department  Identify changes in performance as a result of proposed budget cuts

Management Team Budget Package Budget Request

Management Team Budget Package Budget Request/Reduction Narrative

Management Team Budget Package Department/Program Performance Measures

Budget Development Schedule  March Department budget requests due Department budget requests due  April Meetings with County Administrator Meetings with County Administrator  May Legislative Session Ends Legislative Session Ends Management Team Budget Workshop Management Team Budget Workshop  June June 1 Property Values June 1 Property Values BCC Budget Workshop – June 8 & 9 BCC Budget Workshop – June 8 & 9  July July 1 Property Value July 1 Property Value BCC Budget Workshop – July 13 BCC Budget Workshop – July 13  August  September 1 st Public Hearing – September 8 1 st Public Hearing – September 8 2 nd Public Hearing – September 21 2 nd Public Hearing – September 21

OFMB RESOURCES  Budget and Financial Management staff are available to assist departments throughout the process  Contact your budget analyst to schedule assistance in developing your budget request

TO DO LIST  Engage Management & OFMB Early in Process  Analyze Current Programs, Objectives & Performance Measures  Identify Measures to Increase Efficiency Wherever Possible  Adjust Budget Accordingly  Identify & Link Changes in Services/Performance Measures to Budget Adjustments  Submit Initial Budget Request in BRASS  Submit Completed Management Team Budget Package & Program Objectives and Performance Measures  Create organizational Chart  Meet with Human Resources to review positions slated for elimination