Adding context, driving innovation and making better decisions through a more comprehensive budget process

 Adheres to a GASB and GAAP  Balanced and Sustainable  A link between operations and policy objectives  Funds community priorities  Communicates effectively  More proactive than reactive

 Repetition implies inherent value  Doesn’t explain outcomes  Doesn’t report performance  Doesn’t drive innovation  Works best with stability  Creates a reactive model  Good for accountants

Account # 2013 Actual 2014 Estimated 2015 Budget 2016 Budget 12100Salaries 1,010,808 1,085,0001,090, Overtime 19,98932,00020,00021, Materials 43,92142,50044,00045, Insurance 19,24417,986 18, Utilities 9,85010,05010,00010, Task Force 5,000 5, Delta County 8,000 9, SWAT Rental 2,225 2, Equipment 8,0007,8008,5009,000 Total 1,127,6221,136,9941,202,4611,211,550

 Establishing Priorities and Desired Outcomes  Understanding True Cost  Measuring Performance  Collecting & Reporting Meaningful Data  No Silver Bullets; But Context, New Insight and Better Decisions

 Consider the willingness of citizens to pay  What does the tax payer get?  Does the budget reflect citizen priorities?  Are you achieving desired outcomes?  Does your line item budget give you tunnel vision?

Goal: Allocate resources to programs and services that are effective at achieving the highest priority ends.

#1 Set revenues #2 Establish broad community outcomes (ex: Community Safety) #3 Define what causes the outcome (ex: control crime, safe transit etc.) #4 Establish teams for review and scoring #5 Rank/ compare programs based on effectiveness #6 Allocate resources accordingly #7 Measure results

 Establish a complete inventory of services (within or across departments)  Identify the total true cost of the services  Develop ways to measure the effectiveness of each service  Review and discuss

Service/ ProgramCostResult Recreation$2.1M Improves Health Strengthens community Public Safety$1.7M Reduces crime Reduces accidents Street Maintenance$500K Reduces deferred maintenance costs Improves safety Code Enforcement$110K Beautifies the town Reduces disputes Economic Development$45K Supports new existing business Expands job base Recycling Services$15K Diverts minimal waste from landfill

Account # 2013 Actual 2014 Estimated 2015 Budget 2016 Budget 12100Salaries 1,010,808 1,085,0001,090, Overtime 19,98932,00020,00021, Materials 43,92142,50044,00045, Insurance 19,24417,986 18, Utilities 9,85010,05010,00010, Task Force 5,000 5, Delta County 8,000 9, SWAT Rental 2,225 2, Equipment 8,0007,8008,5009,000 Total 1,127,6221,136,9941,202,4611,211,550

 Cost to sustain infrastructure  Long term maintenance  True operating costs

Overlay Maintenance Miles of roadAvg. LifeCost/ mileMiles/ yearCost/ yearCost/ Life 6425 years$330, $847,070$21,176,769 Reconstruction Cost Cost/ MileAdded Cost/ Mile Added Cost at 10% total miles Added Cost/ Year Cost/ life $1,784,474$1,453,587$9,302,956$372,118$30,479,725

True Program Cost (2013) ProgramPoolSportsFitnessRentalsChild Care Cost$446,814$232,116$246,220$48,550$26,554 Other Program Consideration (2013) ProgramPoolSportsFitnessRentalsChild Care Participant Uses81,0802,58525,77617,6043,784 Cost/ Use$5.51$89.79$9.55$2.75$7.02

 Five year plan vs. life cycle cost  Any high dollar asset that is intended to be replaced is worth capturing  Model leases, used and new purchases

“If you can’t measure something, you can’t understand it. If you can’t understand something, you can’t control it. If you can’t control something, you can’t improve it.” ~H. James Harrington

 Outputs: simple measures of raw counts of activities or services  Efficiency: relates outputs to resources used (inputs)  Outcome: gauges impact, effectiveness and quality

 Gain insight and context you wont otherwise know  Test the efficacy of strategy  Helps communicate results and value  Drives innovation

 Delta has 17 sworn officers and a $1.73M budget (outputs)  Delta spends $ per capita on law enforcement (efficiency)  Delta Officers spend approximately 33% of each shift on patrol (efficiency)  69% of Delta citizens are confident in the PD’s ability to maintain public safety (outcome)

 External: What do other communities do?  Internal: What do performance metrics look like over time?

Rec $/1,000Avg. of 92Median of 92Rank of 92 $285,126$78,431$55,424#2 PD $/ 1,000Avg. of 96Median of 96Rank of 96 $195,623 $243,000 $216,000#49 Code $/ 1,000Avg. of 72Median of 72Rank of 72 $9,020$6,380$4,770#18

 Add context  Translate/ Interpret information  Use the data you have in a better way  Collect important data that you don’t have  Use simple models to vet important decisions

 You don’t know if you don’t ask  The people you hear from don’t represent everybody  Measure citizen satisfaction  Facility use  Gauge interest in new programs/ services  Educate your citizens at the same time

Account # 2013 Actual 2014 Estimated 2015 Budget 2016 Budget 12100Salaries 1,010,808 1,085,0001,090, Overtime 19,98932,00020,00021, Materials 43,92142,50044,00045, Insurance 19,24417,986 18, Utilities 9,85010,05010,00010, Task Force 5,000 5, Delta County 8,000 9, SWAT Rental 2,225 2, Equipment 8,0007,8008,5009,000 Total 1,127,6221,136,9941,202,4611,211,550

Rec Center Budget: Total Visits 137,378 Cost/ Vist $12.28 Satisfaction Rating 78% % Resident Participation 70% Rate of Subsidy 68% Key Indicators:

 Good for the “what if?”  Looks at more than one variable at once  Provides “real time” analysis  Puts potential outcomes in context

Moving beyond the line item…  Consider priorities  Work with true costs  Measure and report performance  Do more with data