1. UW Performance Measurement & Budgeting Project A Cooperative Presentation by UW- Extension and UW-Oshkosh for the Wisconsin City Managers Association Alan Probst, Senior Lecturer, UW-Extension LGC Craig Maher, Associate Professor, UW-Oshkosh A Cooperative Presentation by UW- Extension and UW-Oshkosh for the Wisconsin City Managers Association Alan Probst, Senior Lecturer, UW-Extension LGC Craig Maher, Associate Professor, UW-Oshkosh

2. Why the Project? Current local government financial situation requires better efficiency Need for education and training was expressed to the University of Wisconsin Logical program staff: Craig Maher, UW-O, MPA program and city council member Alan Probst, UW-EXT, LGC and former city manager

3. Project Status to Date Introductory PresentationComplete Introductory PresentationComplete Instructional PresentationComplete Instructional PresentationComplete Performance Handbook/ManualComplete Performance Handbook/ManualComplete Identify Core IndicatorsDraft Identify Core IndicatorsDraft Training ExercisesFirst 1 complete Training ExercisesFirst 1 complete Training for local officialsOngoing Training for local officialsOngoing Data clearinghouseSeeking Funding Data clearinghouseSeeking Funding

4. Performance Budgeting Originated in late 1940’s Originated in late 1940’s Congress enacted through National Security Act of 1949 for newly formed Department of Defense Congress enacted through National Security Act of 1949 for newly formed Department of Defense Government Performance and Results Act (GPRA) Government Performance and Results Act (GPRA)

5. Performance Budgeting Based on the assumption that presenting performance information alongside budget amounts will improve budget decision-making by focusing funding choices on program results

6. Performance Based Budgeting Performance based budgeting cannot begin until a system of performance measurement has been instituted Performance based budgeting cannot begin until a system of performance measurement has been instituted A functional performance based budgeting system cannot be expected to produce the long-term desired results in the first year of its inception A functional performance based budgeting system cannot be expected to produce the long-term desired results in the first year of its inception Must build a Performance Based Management System Must build a Performance Based Management System

7. Management Tool Performance budgets focus on missions, goals, and objectives to explain why money is being spent and provide a way to allocate resources to achieve specific results PBB is intended to be a management tool for program improvement, not a “carrot and stick” methodology used to “punish” departments for not meeting goals

8. Why is this Important? Most Federal grants now require outcome evaluations (performance measurement) in their applications Most Federal grants now require outcome evaluations (performance measurement) in their applications Bond sales require indicators of financial condition which are well presented by performance data Bond sales require indicators of financial condition which are well presented by performance data Local government revenues are becoming insufficient making effective use of resources imperative Local government revenues are becoming insufficient making effective use of resources imperative Promotes the logical tie between planning and budgeting Promotes the logical tie between planning and budgeting

9. Why is this Important? Both the Government Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA) are promoting performance measurement indicating it may soon become a requirement Both the Government Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA) are promoting performance measurement indicating it may soon become a requirement Provides a way to quantify to the citizens how well their local government is doing compared to previous years and other similar communities; i.e. “how much bang they’re getting for their buck” Provides a way to quantify to the citizens how well their local government is doing compared to previous years and other similar communities; i.e. “how much bang they’re getting for their buck” The current fiscal crisis is expected to worsen; the State of WI is facing a $3b. GF annual shortfall The current fiscal crisis is expected to worsen; the State of WI is facing a $3b. GF annual shortfall

10. Performance Measurement The regular systematic collection, analysis, and reporting of data that tracks resources used, work produced, and whether specific outcomes were achieved by an organization Note: Measurements are only meaningful to the degree that they are a basis for strategic and operational decision-making

11. Performance Measurement Performance Measurement should: Be based on program goals and objectives that tie to a statement of program mission or purpose Be based on program goals and objectives that tie to a statement of program mission or purpose Measure program outcomes Measure program outcomes Provide for resource allocation comparisons over time Provide for resource allocation comparisons over time Measure efficiency and effectiveness for continuous improvement Measure efficiency and effectiveness for continuous improvement Be verifiable, understandable, and timely Be verifiable, understandable, and timely

12. Performance Measurement Be consistent throughout the strategic plan, budget, and accounting and reporting systems over time Be consistent throughout the strategic plan, budget, and accounting and reporting systems over time Be reported internally and externally (Federal grants do and GASB may soon require it) Be reported internally and externally (Federal grants do and GASB may soon require it) Be monitored and used in managerial decision-making processes Be monitored and used in managerial decision-making processes

13. Local Example

16. Performance Indicators CITY GOAL: Ensure a safe and peaceful community Fire Service: Structural fires per 1,000 population Structural fires per 1,000 population Response times reduced to or maintained at ___ minutes Response times reduced to or maintained at ___ minutes Percent of 9-1-1 calls answered in 20 seconds Percent of 9-1-1 calls answered in 20 seconds Inspections w/time period Inspections w/time period Citizen satisfaction Citizen satisfaction ISO rating ISO rating Fire/incident scene accountability Fire/incident scene accountability

17. Performance Indicators Police/Sheriff: Cases or % of cases closed per reporting period Cases or % of cases closed per reporting period Violent crime per population or time period Violent crime per population or time period Property crime per population or time period Property crime per population or time period Juvenile offenses per population or time period Juvenile offenses per population or time period Response times Response times Perceptions of safety Perceptions of safety Courthouse security (BIG issue for more urban counties) Courthouse security (BIG issue for more urban counties)

18. Performance Indicators EMS: Attain/maintain a cardiac survival rate of _____ %. Attain/maintain a cardiac survival rate of _____ %. Attain/maintain an in-city response time of _____ minutes. Attain/maintain an in-city response time of _____ minutes. (in all but most urban areas of the state, EMS and Fire are separate organizations) (in all but most urban areas of the state, EMS and Fire are separate organizations) Emergency Management: Emergency Management: Achieve/maintain a public alert rate of ____________. Achieve/maintain a public alert rate of ____________.

19. Performance Indicators CITY GOAL: Operate and maintain an effective and safe transportation system Number of miles paved during a reporting period Number of miles paved during a reporting period Percent of streets/highways cleared of snow w/24 hours of snowfall Percent of streets/highways cleared of snow w/24 hours of snowfall Percentage of streets/highways with PASER rating of 4 or lower Percentage of streets/highways with PASER rating of 4 or lower Percentage of streets reconstructed in reporting period Percentage of streets reconstructed in reporting period Traffic flow indicator Traffic flow indicator

20. Performance Indicators CITY GOAL: Improve the quality of life in neighborhoods Resident level of safety in parks Resident level of safety in parks Citizen satisfaction with Parks & Recreation Citizen satisfaction with Parks & Recreation Rates of citizen participation per program Rates of citizen participation per program Recycling diversion rate Recycling diversion rate Community cleanliness Community cleanliness Acres of park land maintained (mowed, cleaned, etc.) Acres of park land maintained (mowed, cleaned, etc.) Number of households utilizing library service Number of households utilizing library service Water quality ratings Water quality ratings

21. Performance Indicators CITY GOAL: Promote economic vitality and opportunity Perceptions of community as a place to live/work Perceptions of community as a place to live/work Unemployment rate Unemployment rate Per Capita Income Per Capita Income Equalized Property Value per capita Equalized Property Value per capita Homeownership rate Homeownership rate

22. Performance Indicators CITY GOAL: Efficient city management: Municipal bond rating Municipal bond rating Assessment ratio Assessment ratio Building plan/plate reviews completed (planning dept.) Building plan/plate reviews completed (planning dept.) Building permits issued (planning dept.) Building permits issued (planning dept.) Bills processed on time (finance dept./treasurer) Bills processed on time (finance dept./treasurer) Public notices published (clerk) Public notices published (clerk) Personnel actions completed (HR or clerk) Personnel actions completed (HR or clerk)

23. Training Exercise Scenario: The City Council of Dog Patch has complained to the City Administrator that the fire department’s response times are too slow, especially for motor vehicle accidents. The City Administrator wants you, the Fire Chief, to begin tracking your performance related to response times to:

24. Training Exercise (A) defend the department’s response performance to the council, and (B) determine what can be done to improve response times.

25. BenchmarksBenchmarks Internal: Average response time for all city public safety services Average response time for all city public safety services Response time per mile traveled Response time per mile traveledExternal: Response times for fire departments in other comparable municipalities Response times for fire departments in other comparable municipalities 1. Bug Tussle 2. Night owl 3. Black bog 4. Possum Hollow

26. Four-Step Methodology Step 1: Review and Evaluate Existing Department Mission and Cost Center Goals: “To provide emergency and non- emergency services to anyone requiring assistance in our service area.”

27. Four-Step Methodology Step 2: Identify a Service Area. Fire suppression Fire suppression Fire prevention Fire prevention Fire prevention education Fire prevention education Extrication Extrication Confined space rescue Confined space rescue Disaster response Disaster response Other rescue as needed Other rescue as needed Other emergency responses not applicable to other depts. Other emergency responses not applicable to other depts.

28. Four-Step Methodology Step 3: Service Area Objectives “Arrival of first fire/emergency apparatus on scene within seven (7) minutes of dispatch anywhere within municipal limits.”

29. Four-Step Methodology Step 4: Identify indicators that measure progress on objectives. Time from initial dispatch to report 10-23 on station. 1. During normal workday 2. Night, after dark 3. Under adverse weather conditions 4. During unusual events 5. Other calls requiring response at same time

30. Four-Step Methodology Step 4: Identify indicators that measure progress on objectives. (cont.) Manning level/firefighter availability at time of dispatch Manning level/firefighter availability at time of dispatch Equipment status/availability at time of dispatch Equipment status/availability at time of dispatch Weather conditions at time of dispatch Weather conditions at time of dispatch

31. MATRIXMATRIX Service AreaObjectiveInputOutputEfficiencyService QualityOutcome Fire Suppression To ensure arrival of first fire/emergency apparatus on scene within seven (7) minutes of dispatch anywhere within municipal limits Actual costs equipment staff/firefighters # incidents responded to avg. cost per responseavg. response time acceptable response time for ISO and benchmarks Response time 7 minutes 1 engine, 1 truck, 6 firefighters, fuel 342$1,055 8 minutes, 4 seconds acceptable response time considering manning and weather conditions

32. Supporting Data Number of total responses during data collection period:342 Average response time:8 min 4 sec Number of responses during periods of reduced manning:184 (75% manning or lower) Average response time:7 min 15 sec

33. Supporting Data Number of responses during or within 24 hours of 3 inch snow or ice event:127 Average response time:9 min 32 sec Number of responses w/full manning and no weather event:102 Average response time: 6 min 30 sec Average response times for all comparable benchmark municipalities 8 min 10 sec

34. Explanatory Data Data collection period was conducted during month of December, 2008 when the municipality suffered the snowiest December in recorded history and budget deficits mandated 2/3 of shifts to be manned at 75%. Some responses experienced both snow/ice event and reduced manning.

35. SummarySummary The department did not reach the goal of 7 minutes or less for each response time but met an acceptable level of an average of 8 minutes, 4 seconds from dispatch to reporting 10-23 on station because of unprecedented manning reductions and record-breaking winter weather. Under normal conditions the department actually exceeded the set goal by nearly 8 percentage points and one half minute and still exceeds the overall average response time of external benchmarks.

36. ContactsContacts Alan Probst Senior Lecturer & Local Government Specialist UW-Extension Local Government Center alan.probst@uwex.edu Craig Maher Associate Professor UW-Oshkosh MPA Program Director, Office of Governmental Studies maher@uwosh.edu