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HomeMy WebLinkAbout2009-01-10 Correspondencer/~~/~9 City of Iowa City FY2010 Budget Work Session January 10, 2009 -Handouts Page No. Agenda ......................................................................................................1 Taxable vs. 100% Valuation .....................................................................2 Change in Valuations 2007 - 2008 ..........................................................3 Building Permits .......................................................................................4 Administrative Chargeback Formula ......................................................5 General Fund Summary ...........................................................................6 Cash Balance -Projections thru FY2014 ...............................................7 Decision Point -Housing Inspection Fees (3 pages) ............................8 Decision Point -Parking Fees ..............................................................11 Expanded Service Level Requests (ESL) .............................................13 Priority Setting Model ............................................................................14 Road Use Tax ..........................................................................................17 Debt Service Summary ..........................................................................18 FY2010 Budget Work Session January 10, 2009 Budget Overview General Fund Revenues • Property Taxes Tax Cycle Timeline Valuations Residential Commercial City Assessor -current vs trends Tax Levies • Licenses and Permits Building Permits Rental Inspection fees -rate increase • Use of Money & Property Interest Rates Parking Permits -rate increase • Intergovernmental • Charges for Services • Miscellaneous Parking Violation fines -rate increase • Other Financing Sources General Fund Expenditures • Personnel • Services • Supplies • Capital Outlay • Other Financial Uses Cash Balances • FY2012 - 27`h pay period Expanded Service Levels Priority Setting Model Road Use Tax Debt Service Enterprise Funds • Sanitation -rate increase • Airport • Parking -rate increase -1- O } C O O O N woao0o N ~ oo ~ nR Oocp et N CO N V n 00 CO N O) O M ~n n M~ 01 r V ~ 00 O M ' O In ~Y ' N In (O ~ ~ t0 ~ ~ CO M t0 n N ~ (D CO 1A 00 O V 00 O J M CO O O 01 01 ~ e~ ~ n V N 0 00 In N M W n M r N 0 0 N N M M <O O (O Q F.- V '~ N ~ `- `~ "' M `~ ~ ~ `- ~ ao ao v n co n m ~n ~ n O O ~'- M M `-~ M M ~ co wnrn a v v H ~ ' ~ ~ ~ ' ' ' ' ' ' W M M M W C~ O O O ~ W N O N N T W N O> N N W r ~ l17 lf) O ~ 01 W O U N N 00 r r U Z ~' `" Z oooM Ne-' n oo n v~o 00 co v rn v ~n aD rn oo co o rn rn ~ u~ co M ~n rn 00 (D N Q1 O ' O O r ' Of M G M ~- M 10 W O V N~ M n M ~ N N M 0 0 O ~ O O O O 0 0 Q N ~ I M N O O (O N a n M M M O M I m M ~ N N N M M N ~ m ~ e- C D f 0 M O O O O Cp N E N _ M M r- V' V' ~ (D V' N O O 00 N O O h O h ~ V' Q1 n O N OD N O O O O r ~ {O M N in ~ ~ 00 n O M CO ~ N O O O M n CO n ~ ~ CD O O n O I ~ In CO O> O 00 O In 'cY O) n _ M O 00 to ~- N N M M n 10 F.. 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O tn V 01 tn N ~ O m ~ n f~ W O _ I~ N r O CO O ~ N ~ ~ O M N QI n O O N m O ~ N t0 ~ M CO t~ ~ O ~ M M CO i- V t~ ~ lf) O M O p ~ OD n ~ M CO O) O 0) N ~ _ r .- ~ 00 CO ~ CO Qi CD N r ' CO M N ~ O O O O CO d' ~ tC ~ O O N O O> I~ O O } ~ In ~ O tn d' f~ M O N O r ~ ~ ~ M CO M O O O ~ LL ~ to ~ iA M Q) N n ~ X W fA CA E9 b9 Efl fA b9 Efl EA fA d9 fA EH V/ ffl ffl EA d9 Ei9 CA V~ d9 E+H f+H U _ t9 C O y y ~ :; T m ~E ~> ~ c m c N N C d _ V C CA CO V Q C C Q C _ -p O W O -O N w V C ~ ` N ~ ~ N C O C N 7 O - ~ U O O a C~ U Q fC ~ o c ~ t ~ E m 3 LL N c m a o E °' ~ 8 ~ o ~ c ~ ~ ~ v cj ._ ~` ~' L U y c 5 a i o ` o c o a i C7 `° ~ `° ~ ~ m a Q ° tn ~ U U U U a LL. Q n- ~ o U ~ W F- ~ J -5- CITY OF IOWA CITY, IOWA Financial Plan for 2010 - 2012 Fund: 1000 General Beginning Balancs Propertyy Taxes Other City Taxes Licenses And Permits Construct. Permit & Inspect. Fees Federal Intergovt..Revenue Property Tax Credits State 28e Agreements Disaster Assistance Other State Grants Local Govt 28e Agreements Building & Development Fees Transit Fees Culture And Recreation Misc. Charges For Services Code Enforcement Parking Fines Library Fines & Fees Contrib & Donations Animal Adoption Misc Merchandise Intra-city Charges Miscellaneous Revenue Interest Revenues Rents Pkg Ramp Revenue Royalties & Commissions Sale Of Assets Road Use Tax Intrafund Reserve Transfers From Water Operations From Wastewater Operations From Parking Operations From Airport Operations From Broadband Transfers From Go Bonds Interfund Loans Misc Transfers In Loans Total Receipts Personnel Services Supplies Capital Outlay Transfers Out Contingency Total Expenditures Ending Balance ' Reserved / Designated Unreserved Balance ~ of Expenditures 2008 2009 2010 2011 20 12 Actual Estimate Budget Projection Projection 21,131,480 18,744,625 15,992,227 16,000,481 15,76 1,563 30,107,850 1,160,175 259,424 1,026,400 1,171,269 41, 780 1,206,986 6,606 764,068 776,345 383,378 858,904 641, 627 125,336 316,360 474,279 198,470 64,339 13,170 48,712 1,664,663 322,536 1,693,447 388,414 426,723 30,979 110,497 58,304 1,133,640 14,699 14,699 200,000 7,350 152,821 31,834,083 1,202,531 203,566 1,104,949 6,334,312 24.,739 1,330,136 710,000 625,907 760,056 312,354 904,802 781,256 135,747 362,511 549,502 193,449 258,325 . 11,740 47,196 1,604,063 194,006 1,200,719 413,868 376,646 31,369 109,808 59,986 162,944 16,718 16,718 200,000 8,359 152,821 33,160,803 1,205,530 209,062 1,116,836 889,334 24,739 1,398,138 34,593,812 1,226,298 209,062 1,191,836 889,334 24,739 1,394,376 35, 014,009 1, 247,413 209,062 1, 128,336 889, 334 24 , 739 1,457,024 1,000,054 526,335 3,000 18,151 100,.000 46,882,455 52,864,521 31,249,893 32,954,639 8,144,807 9,635,623 2,007,985 9,315,329 1,709,967 2,365,068 6,156,458 994,460 352,000 49,269,110 55,617,119 18,744,825 15,992,227 560,311 834,758 352,108 858,904 695,295 209,631 316,360 592,845 198,470 58 , 100 15,000 62,337 2,619,914 256,818 800,000 406,783 543,838 25,249 85,768 62,965 178,220 19,561 19,561 560,311 784,104 352,108 858,904 695,295 209,631 316,360 592,845 198,470 58,100 15,000 62,337 2,619,914 256,818 700,000 406,783 543,838 25,249 85,768 65,390 106,922 20,895 20,895 560, 311 789,236 352 ,108 858 , 909 695,295 209,631 316 , 360 592,845 198 , 470 58,100 15,000 62,337 2,619,919 256 , 818 600 , 000 406,783 543 , 838 25, 249 85, 768 68,084 62,422 22,400 22,400 9,781 10,448 11,200 55,000 55,000 55,000 290,000 500,000 3,000 3,000 3,000 200,000 200,000 200,000 46,835,019 49,353,842 49,661,390 33,592,243 10,041,366 2,404,863 1,439,587 983,706 365,.000 35,348,501 9,178,411 2,453,910 1,575,462 666,476 370,000 36,288,353 9,470,049 2,507,968 1,233,691 632,697 1,775,000 48,826,765 49,592,760 51,907,758 16,000,481 15,761,563 3,142,881 12,618,682 13,515,195 2,882,224 2,972,126 3,099;333 15,862,601 13,020,101 12,901,148 32 ~ 23 ~ 26 ~ 25 ~ 3,238,976 10,276,219 20 ~ =6- 7 LL fC C N g rn ~ 01 j0 o E N ~ ~ 0 ll c+1 O ID d M f0 0 LL M O` co d N 'S LL 'p 4. ~_ ~j O 4) } ~~ t1d O O N 7 ~ CD ^ N M ~ tf') 01 r ~ ~ tM0 N n h r r V O O ~ N ON1 O! ~ N W 00' M N 001 O ~ N '- O1 N ~ O ~ 0 OI r M tD 0/ V N e ~ r In M ~ a O o0 M W ~ N M N .- 0~0 N Y1 A N aNa N ~ ~~ V r H r ~ N N n 07 r 11'1 tOO N n 01 N ~ ~ n N N r 00 V ~ M r r~ VD N N sNs{ M ~ V T ~ O 0O c~ N N W O) M N ~ W Wi tC) N f. N 00 N OV", N 0 IA ~ ~ ~ O O N ~ M~pp ~ o7 01 ~~~pp M 00 N O M O n n O7 N M M N ~ M 01 E 1n N H M ~M~pp Oro in OD (O ~ 1~ ~vi R M 01 O O W ri N N N r ~~ 001 ~ N OAO M N 10 ph11 N I: W O 07 N N O r pNppp f0 r tO ~ ~ rp Of N r O N O ~ t0 .- ' N ~ o O r N ~ ~ 0 00 ~ Y9 r D e N f N ° N M N 0 ~ e r o V N ap p a 0 ~ C ~ ' V " U N ~ y p OD N iD ~ M 0 ~ M ~ W ~ ~<OpOp uj W W ~ O ' a O N (7 O D O O f` ) O 1D OA N OD N N - N < a r . N 0 W O ~ p tD fO 00 f 7 O> N 01 ~ ~ t0 n R M N 00 OD O V N W N ~ ~ N ~ OD 1~ lh N ~ 00 C7 U7 1~ ~ Of W n N W ~Y V N t~ ~ ~ 'V fO e o 0 00 0 (O ~ ~ W W n _ ~.j uy a0 '- V N 0 M N .~ n M _ O ~ ~ fh 0 ~ n O n tO n lf7 f l O N 1~ r C C .- ~ p V0' o n o N N a ~ ' ~ M N~ O ~ 0 N O O M N V O ~..j h. N V r 1 M p fh 07 0 <O 00 N cO V N I~ O h_ O O C O a' tO t0 O O N R C n .- O r g o o ~ o ~ ~' ~ ~ 0 O ~ N O1 M (+ 9 N 1 fi N ~ M O N O ~ M M n N lh M O _ W o o ( O ~ (O 1t7 /D 117 O 0 10 .- 'Q r- V (`~ r M 0 N o ~ o ~ 0 W 0 O O h 0 i O O n _ n O N N 1A tO ~ 0 ' O) N M r R ~ 0 0 0 M a N N 0 0 O t O f O ~ O O 1~ N fh M •- V M r p n o N tp 0 O 0 0 0 W O O O O O N .- i 0 O ( O c p <O N 00 n' O M N N r M C N O ID t0 Ol ~ ~ O O O o 0 0 0 ~ O O Ins ~ ~ ~ p Ol M r `' ~ N N ~ _ ~ O N ~ r O to W ( D O 0 M M Ol 0 p o o e s sy~ ~ e O N n p o W N N sf ~ tOr N nj ' O M ~ ~ fM7 0 ~ ~ ~ ~ ~ M Oi Oi O01 M ~ M ~ ~ b o ~ 0 0 o 0 .- O) W e- V? O i tD N N N N OD N ' N ~ M M n ~ N ~ t~O _ f0 O) N R I~ f~ f~- 0 M N O O N d N ~ ~ ~ ~ N w C U } } ~ .C+ ~ d ~~"' ~~1 41 `o_ o W ' ~ m ~ x W c~ a ma ~~ a 3 $ ~~ m a O C O y O (may C W~ ~ yU ~ , ~, N a ~ N ~ (D 61 .E N ~ K ~ ~ [ } ~ C ~ C L W L ~ C N L C y o V o V y o ~ ai ~ U ~ 0] V- o F- o Z o W J~ o 0 -7- ~ r ~.,:.®~r,,~ ~; "m~' ®.~~~ CITY OF IOWA CITY MEMORANDUM Date: December 3, 2008 To: Michael Lombardo; Kevin O'Malley From: Norm Cate Re: Rental licensing fee options for budget discussion This memo illustrates three fee options for budget discussion. Each option shows the percentage of general levy funds that will be required to balance the rental housing division's budget for the next four fiscal years (2009 through 2013) As background information, prior to 2002, the rental housing division required between 30% to 50% in general levies to balance its budget. Because of serious budget constraints beginning in FY2002, Council directed the rental housing division to be, over time, fully funded through fees. Since FY 2003, the division has produced two years of revenue exceeding expenditures and three years revenue deficit, thereby reducing the general levy share of our budget from over 40% in 2001 to less than a 9% cumulative total through the following five fiscal years. In the spring of 2008, Council considered a staff recommendation for a fee increase to fully fund its budget, along with changing single family and duplex structures from a three year to a two year inspection cycle. At that time, Council approved the inspection change but decided not to increase fees. Council then directed staff to provide it with an update in the fall of 2008 of the rental housing division's budget status. • FY 2008 general levy contribution was 12%, or $52,000 to the division's budget. • FY 2009 budget projection~estimates a 15% general levy contribution, or $70,000. • FY 2010 budget projection estimates a 22% general levy contribution, or $115,000. The jump in the general levy contribution for FY 2010 reflects moving 75% of the housing assistant position's salary and benefits from the H.I.S. administration budget to the H.I.S. rental housing budget. This addition to the rental housing budget will be ongoing and will contribute to a greater general levy contribution than previously projected. The following three tables show three different rental permit fee options for budget consideration. Option 1 (the staff recommendation for the budget) demonstrates a balanced budget over a four year period, (FY 2009 through FY 2013) with a 19.5% rental permit fee increase, effective July 1, 2009. • Option 2 illustrates the percentage of general levy contribution over that same period of approximately 5%, but with a 12.5% rental permit fee increase, effective July 1, 2009. Option 3 shows the percentage of general levy contribution over that same period of approximately 12.6%, but with no rental permit fee increase during that period. -8- December 4, 2008 Page 2 ~ OPTION 1 (_ _ PROJECTED REVENUE AND EXPENDITURES FY 2009 THROUGH 2013 WITH A PROPOSED 19.5% FEE INCREASE (STAFF RECOMMENDATION) FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 TOTALS Total 380,000 460,000 535,000 590,000 665,000 $2,630,000 Receipts Total 449,000 516,000 536,000 556,000 576,000 $2,633,000 Expenditures -69,000 GL -56,000 GL -1,000 GL +$34,000 +$89,000 -$3,000 GL Totals Surplus Surplus • With a 19.5% fee increase, option 1 produces a balanced budget solely from rental licensing revenues for the combined fiscal years 2009 though 2013. OPTION 2 PROJECTED REVENUE AND EXPENDITURES FY 2009 THROUGH 2013 WITH A PROPOSED 12.5% FEE INCREASE FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 TOTAL Total 380,000 430,000 500,000 560,000 620,000 2,490,000 Receipts Total 449,000 516,000 536,000 556,000 576,000 2,633,000 Expenditures -69,000 GL -86,000 GL -36,000 GL +4,000 +44,000 -143,000 GL Totals Surplus Surplus • With a 12.5% fee increase, option 2 produces a general levy contribution of $143,000 (5% of the budget) for the combined fiscal years 2009 though 2013. -9- December 4, 2008 Page 3 OPTION 3 PROJECTED REVENUE AND EXPENDITURES FY 2009 THROUGH 2013 WITHOUT A FEE INCREASE FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 TOTAL Total 380,000 390,000 450,000 510,000 570,000 $2,300,000 Receipts Total 449,000 516,000 536,000 556,000 576,000 $2,633,000 Expenditures Totals -69,000 GL -126,000 GL -86,000 GL -46,000 GL -6,000 GL -333,000 GL • With no fee increase, option 3 produces a general levy contribution of $333,000 (12.6% of the budget) for the combined fiscal years 2009 through 2013. These tables were constructed in a manner similar to the Council's budget layout to illustrate the projected revenue and expenditures from FY 2009 through 2013. To achieve a balanced budget for the combined fiscal years of 2009 through 2013, staff recommends implementing option 1, a 19.5% rental permit fee increase, effective July 1, 2009. -10- City of Iowa City ~- MEMORANDUM TO: Michael Lombardo, City Manager FROM: Chris O'Brien, Director of Transportation Services DATE: December 12, 2008 RE: Changes to Parking Rates This memo is to summarize the proposed changes to parking rates for the FY10 budget. These changes include changes to the downtown on-street meter rates, increases in all parking citation fines and an increase in the monthly permit rates. Following is a summary of all of the proposed changes as well as the budgetary impact. Increase of on-street meter rate The proposed change includes an increase in the on-street meter rate from .75 per hour to $1.00 per hour for parking meters in the area bounded by Gilbert Street, Burlington Street, Clinton Street and Market Street. This increase is being proposed to encourage long term parking customers to utilize the cashiered parking garages which will maintain a rate of $.75 per hour. This is a 33% increase in rate and we anticipate a 25% increase in revenues as some customers will choose to utilize other parking options. Rates were last increased from $.60 per hour to $.75 per hour in FY07. FY08 Actual* Proposed FY10 Rate Budget Rate Budget $.75 $580, 000 $1.00 $725,000 `adjusted due to change in collection area Increase in parkins citation fines The proposed change includes an increase in $5.00 parking fines. The original fine amount would be $10.00 with a $3.00 discount if paid within 7 calendar days. The payment structure will look as follows: Days 1-7 8-30 30+ $7 $10 $15 The proposed change would also include an increase in $10.00 parking fines. The original fine would increase to $15.00 with an escalation to $20.00 if not paid within 30 days. One exception is the fine for illegally parking in a commercial loading zone. We propose that this fine we increased to $25.00 with an escalation to $30.00. This is proposed as part of our effort to relieve commercial parking congestion in downtown Iowa City. As a result of these changes we anticipate a 40% increase in revenues from $5.00 citations and a 25% increase in revenues from $10.00 citations. Fines were last increased in FY04. FY08 Actual" Proposed FY10 Fine Budget Fine Budget $5 $627,427 $10 $878,400 $10 $474, 320 $15 $592,900 `adjusted due to staffing levels -11- December 15, 2008 Page 2 Increase of monthly permit rates The proposed change includes an increase in all monthly permit rates for the parking garages; Capitol Street, Dubuque Street, Chauncey Swan, Tower Place and the Court Street Transportation Center. We propose an increase so that all covered parking garages have a rate of $80.00 per month. All lot permits will remain at $60.00 per month. Monthly permits were last increased by $5.00 per month in FY07. Following is the budgetary impact at each facility. Location Capitol Street Tower Place Dubuque Street Chauncey Swan Court Street TC FY08 Actual Rate Budget $75 $169,810 $75 $152,567 $65 $215,053 $60 $251,363 $60 $366,767 Proposed FY10 Rate Budget $80 $181,700 $80 $163,250 $80 $264,500 $80 $334,300 $80 _ $487,800 If you wish to spread the increase out over two years for the Chauncey Swan Garage and Court Street Transportation Center the revenues would be estimated as follows: Location Chauncey Swan Court Street TC FY08 Actual Rate Budget $60 $251,363 $60 $366,767 Proposed FY10 Rate Budget $70 $294,000 $70 $429,100 Proposed FY11 Rate .Budget $80 $334,300 $80 $487,800 Transportation Services will see significant increases in operating expenditures as we implement plans to build another 600 space parking facility on the St. Pat's property. In addition, we have had several capital projects to upgrade existing facilities and software. We have maintained a healthy reserve balance despite our large expenditures. It is our desire to maintain our parking fund while continuing to upgrade our services. In order to do this, we needed to review our current rate structures. Please let me know if you would like to discuss these items further and how you would like us to proceed. Cc: Kevin O'Malley Leigh Lewis Mark Rummel -12- CITY OF IOWA CITY, IOWA ADDITIONAL POSITIONS APPROVED FOR 2010 Department Position Eastside Recycle Ops ENVIRONMENTAL COORDINATOR TOTAL ENTERPRISE FUNDS 2010 TOTAL - ADDITIONAL POSITIONS RECOMMENDED * FTE = Full Time Equivalent Salary / FTE* Wages Benefits Total 1.00 43,633 20,434 64,067 1.00 43,633 20,434 64,067 1.00 43,633 20,434 64,067 CITY OF IOWA CITY, IOWA Additional Positions Requested For 2010 NOT RECOMMENDED In 2010 Financial Plan Department Position Mass Transit Admin Criminal Investig Patrol Patrol Fire Emergency Oper Fire Emergency Oper Fire Emergency Oper Fire Prevention Shelter Oper & Admin Shelter Oper & Admin Park Maint Admin/Sup Parks Oper & Maint Library Bldg Maint Computer Systems Economic Development TOTAL GENERAL FUND Parking Admin & Supp Airport Operations ELECTRICIAN - TRANSPORTATION S CLERK/TYPIST CSO/EVIDENCE CUSTODIAN POLICE OFFICER FIRE LIEUTENANT - RESCUE FIREFIGHTER - RESCUE FIREFIGHTER - ST#4 FIRE LIEUTENANT - PLANS REVIEW ANIMAL CENTER ASSISTANT KENNEL ASST - ANIMAL ASST SUPT - PARKS M.W. I - PARKS MWI - LIBRARY LIBRARY WEB SPECIALIST BUSINESS DEVELOPMENT MANAGER ELECTRICIAN - PARKING AIRPORT OPERATIONS SPECIALIST TOTAL ENTERPRISE FUNDS 2010 TOTAL - NOT RECOMMENDED IN 2010 * FTE = Full Time Equivalent Department Fire Emergency Oper TOTAL GENERAL FUND Salary / FTE* Wages Benefits Total .50 21,161 10,053 31,214 1.00 34,028 18,960 52,988 .50 18,831 9,874 28,705 6.00 241,206 128,544 369,750 3.00 167,400 77,979 245,379 6.00 263,556 142,602 406,158 3.00 131,778 71,301 203,079 1.00 62,211 27,195 89,406 1.00 31,831 18,738 50,569 .75 23,873 14,083 37,956 1.00 47,983 21,125 69,108 1.00 30,887 18,478 49,365 .25 8,712 2,607 11,319 .25 13,263 5,283 18,546 1.00 94,337 28,259 122,596 26.25 1,191,057 595,081 1,786,138 .50 21,817 10,151 31,968 .15 6,316 3,033 9,349 .65 28,133 13,184 41,317 26.90 1,219,190 608,265 1,827,455 CITY OF IOWA CITY, IOWA Additional Positions Requested For 2011 NOT RECOMMENDED In 2011 Financial Plan Position FIRE LIEUTENANT - ST#4 Salary / FTE* Wages Benefits Total 3.00 176,994 90,462 267,456 3.00 176,994 90,462 267,456 3.00 176,994 90,462 267,456 2011 TOTAL - NOT RECOMMENDED IN 2011 * FTE = Full Time Equivalent -13- s N O c~ D 0 3 0 z N N d L f+ V .~ u. 0 0 t s ~F+ .~ ~i~+ d N V 0 0 ~ N U-~ ~ ti N ~ L o ~ U ~ O U ~ ~ Q >; Q ~ U ~ . ~ N -14- O p N ~ p ~ ~ O O ~ O ~ ~ U 0 ~ c c N to ' O ~ ~ U ~~ o ~ ~ L ~~ .~ ~~ U C U :~ ..~ U ~N a a -ac ~a '~ J a ~' h N ~ N c ~ E p E ~ ~ L ~ ~ ~ .w i CA U .' 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M ,O 10 0 d .C aL.+ t 7 d~ a i tl! N M dl Q' 7 a m~ w o, •-a Nw ~ ~ `p ~ CA ~ '~ ~ ~ 7 i ' ~ 6 ~y d ~ 1 j .`.r ~ , ~ _ a w ~ 7 d" y a a ~Y~o oiAOC ' a adds ~ y v c a d ~. c c d .n w> do ao,y N d~ V ~ d G d> C wU W¢ v,a ~awC > > T ~ C`. +_~ .N. d U d - U a ~ r ,, p a ~i ~ 7. > U Q: C fn ~9 d 3 .. ~ a? c y i r a ELd U d ~~ ~ z ~ ~ _~ ~;~ ~:.~ ..~ ..~ ,.~ ~ .. i. V t £ c. ~ ~ O ~ ~ ~ c o ° v ~ ° m oa aw ~a~ S a ~ G C ~ ~ a A C m r- N R N T N w' p ~ ti t= O U 'fl W d p a C 3~ .O h '~ a N d ~ ~ H ~ 7 Y N RI N C .~ N ~ .~.~ N FK . .. a ~4 `~ aR- N S~~N 7 ` ' '~' ~ ~ ~M o °: wc o w ~ ~ ~~ a d ~ ~ > d ~ J ( 7 O " `~ 3 °' ~' E oEN - w m U ~_ y a Et~~• am L y~ ~ C~v~ O '° d O u O d J a fo p V '~ > 'o Z _ .c o ..Jo Y a ~~ , ~ Er a d~ 4 ~' ~ U> a~+ d~ d N O U m w ` d o~ G c ~ a oain c~ r = . ~' ~ aZi ~ ` ~a~ ~ n a o ~ CITY OF IOWA CITY, IOWA FINANCIAL PLAN FOR 2010 - 2012 Fund: 2200 Road Use Tax 2008 Actual Begi~ing Balance 2,254,708 Fed. Intergov. Rev. 42,615 Road Use Tax 5,431,415 Disaster Assistance 5,709 Bldg & Development 39,491 Other Misc Revenue 43,157 Empl Benefits Levy 316,297 Total Receipts 5,878,884 Personnel 2,388,824 Services 1,631,491 Supplies 686,638 Capital Outlay 268,794 Other Financial Uses 1,143;650 2009 2010 2011 2012 Estimate Budget Projection Projection 2,014,195 1,570,825 901,769 433,292 5,391,712 5,583,010 35,475 30,000 3,699 13,665 372,259 381,370 5,803,145 6,008,045 2,381,444 2,482,828 1,515,599 1,822,712 652,791 813,121 225,908 370,475 1,470,773- 1,187.,965 Total Expenditures 6,119,397 Ending Balance 2,014,195 ---- FTE ---- Personnel Services 2009 2010 ASST SUPT STREETS/SOLID WASTE 1.00 1.00 ELECTRICIAN - TRAFFIC ENG 2.00 2.00 ELECTRONICS TECH/TRAFFIC ENG 1.00 1.00 M. W. II - SIGNS 1.00 1.00 M.W. I - STREETS 6.00 6.00 M.W. II - STREETS 7.00 7.00 M.W. III - STREETS 7.00 7.00 MW III - LEAD SWEEPER OPERATO 1.00 1.00 SR CLERK/TYPIST - STREETS 1.00 1.00 SR M.W. - STREETS 2.00 2.00 SUPT STREETS/SOLID WASTE .65 .65 29.65 29.65 Transfers In 5,738,960 30,000 13,665 408,039 6,190,664 2,574,370 1,851,617 837,514 240,250 1,155,390- 5,863,720 30,000 13 , 665 430,282 6,337,667 2, 663, 210 1,881,122 862,633 240, 500 1;108,084 6,246,515 6,677,101 6,659,141 6,755,549 1,570,825 901,769 433,292 15,410 Capital Outlay 2010 Controller Hardware/Software 133,300 Crack Seal Program 40,000 Radios (3) 2,400 Right-of-Way Repairs 2,000 Sidewalk Regair 60,000 Traffic Sign Improvements 33,828 Traffic Signal Equip 98,947 370,475 Transfers Out Empl Benefits Levy 381,370 JCCOG Trans Planning I-80 Aesthetic Imp Burl St Ped Bridge Forestry Rt/Way Mnt Traffic Calming Street Pavmt Marking Railroad Crossings Overwidth Paving Annual Bride Maint Biennial Brick Sts Pavement Rehab. Intr City Bike Trail 381,370 220,000 20,000 85,000 62,965 30,000 185,000 25,000 30,000 60,000 20,000 400,000 50.000 1, lti /, 7b5 n~F- ~ctur~ed~ ~n i~ z~~Z ~~ -17- General Obligation Bonds Outstanding Debt Obligation at June 30, 2009 Summary by Individual Issue 2001 G.O. /Multi-purpose 11,500,000 2016 6,060,000 1,034,280 1,037,193 1,032,630 2002 G.O. /Mufti-purpose, 29,100,000 2021 16,895,000 2,811,980 2,809,160 2,815,960 $18.4 Mill Library Expansion 2002 G.O. /Mufti-purpose; 10,600,000 2015 2,470,000 473,413 470,113 476,463 Refunding '92 Capital Loan Notes, '94 GO, '95 GO, and '96 GO 2003 G.O. /Mufti-purpose 5,570,000 2014 2,710,000 596,450 599,785 597,460 2004 Taxable G.O. /Plaza Tower T.I.F. 7,305,000 2023 6,660,000 668,553 669,953 668,978 2005 G.O. /Mufti-purpose] 7,020,000 2015 4,505,000 854,475 855,500 855,650 2006A G.O. /Multi-purpose 6,265,000 2016 4,690,000 772,600 774,200 779,800 20068 G.O. Taxable 1,000,000 2016 765,000 132,383 132,433 137,208 2006C G.O. Refunding 1997A 3,350,000 2017 2,415,000 398,883 382,723 371,590 Capital Loan Notes , 2007 G.O. /Multi-purpose 8,870,000 2017 7,350,000 1,080,625 1,080,438 1,079,125 2008 G.O. /Mufti-purpose 9,150,000 2018 8,355,000 1,100,119 1,098,794 1,096,656 20086 G.O. Refunding 1998, 1999 8 17,005,000 2018 15,150,000 2,405,063 2,367,613 2,324,563 2000 Capital Loan Notes 2009 GO -Proposed 8,400,000 2019 8,400,000 1,087,842 1,087,842 1,087,842 2010 GO -Proposed 10,400,000 2020 1,346,852 1,346,852 2011 GO -Proposed 9,900,000 2021 - 1,282,100 2012 GO -Proposed 9,400,000 2022 - - - .. ~. .. ~-. qtr' Iowa City's property tax asking for debt service expenditures include the following abatements: WAh $13.4 million scheduled in principal and interest payments, the property tax asking is reduced by $1.8 million in debt service abatements. ~ ~• .. -. G.R.I.P. (TARP) Loan Repayments (40,000) (40,000) (40,000) G.I.C.H.F. Loan Repayments {71,910) (71,910) (71,910) Library Commercial Space Net Income (100,000) (100,000) (100,000) Gas 8~ Electric Excise Tax Funding {191,689) (229,193) (248,011) Water User Fees (752,288) (745,009) (742,104) T.I.F. District Property Tax Revenue (668,553) (669,953) (668,978) TotaIG.O.DebtServiceAbatement: (1,824,440) (1,856,065) (1,871,002) ^•~ •• ~ ~• - ~$ - m m r r v i m m o m c u c u ~ ~ m v ~ o ° Z " o ~ ~, o c n ~ ~ v ~ ~ ~? ~ ~ c c m ~ N m ~ .~ ~ ~ c~ ~ c~ ~ - ~ v, ~ ~ cn cn ~ ~ m m ~ ~ ~ ~ ~ ~ ~ ~ n ~ ~ s o ~ c~ o w ~. ~ o • < ~ ~ < < m Q • m . ~ ~ ~ ~ C m ~ _~ o ~ `~ ~ ~ m ~ as r ~ ~ x ,~ ~ ~ ~ ~ a ~ ~ D ~ ~ ~ Q ~ ~ ~ • o ~ c~ a, m • ~ ° o , C1 ~ o o ~ .~ ~ rt N C CA ~ ~ ~ a ~' m cc • ~ ~ -- ~ ~ O ~ O t J~ O CO N N ~ 31 C - W - O Cn N O O ~ Cn O) O O O O ~ ~ W N O ~ C O J1 C O O CJ7 N OD O , - O O O O O O O to EA - - ' Efl ~ ~ ~ v ~ ~ W CO ~l N ~ - W 11 N Cn ~l ~I CJ7 OD v 0 ~ N O O ~ ~ ~ W W P - CJ~ N ~ ~ ~ O -~ O U~ ~I O E,A Eft - - ~fl .. ~ - N j ~ N ~ ~ W ~ - O O O ~ ~ O ~ W N ~ ~ O O i U O O G7 CO ~ ~ U~ CO O N ~ O ~~ w ~n a n c-e ~~ rem ~-v ~ /~~/~./ General Fund Revenue FYM08 FY2009 FY20f0 FY2011 FY2012 ActuM Bud9sl Protected Prolsclsd Proleded 1. Property Texes 30,101,850 31.834.003 33,160,803 34,593,812 35,014,009 2. OtMr Gly Tux 1,160,1]5 1.702.531 1,203,SJ0 7.226.298 1.24],413 J. Llcenxsa PermM 1,284,0]4 1,309,040 1,325,023 1400,023 1]36,523 4. Uw Ol Moneys Properly 1,]1].11] 1,218,544 a/9,T53 ]19.]55 619,155 5. Interpovernmentel 3.95],610 9,]15,331 3,898,000 3,642,244 3,110024 e. CMr9es FOr Services 4,3]2,269 1,433,802 S,S/3p39 5.5]3.939 5.5]3,939 T. MlacNlaneous 1590,]85 1835,501 1,829,433 1829,453 1629.d53 a. Other Flnenclnp Sources 2,691,115 1,256,688 1,223,838 366,318 330,2]4 ToW Revenue: b46,882,155 552,864,521 548,8]3,019 549,353,642 549,661,390 X cNnee M1em gior yeu 39% 1l.eX .I.e%• IIK ee% am~e enn,eae,o axerer rear runm,mm rrzoos c e u~9 ... s Parmile Inlerpovt 3% FY 2010 Budget omen e% General FUnd Revenue city Taxes ue. or Mon9y 548,835,019 2°i _ a Praporty / 2.0 ^\ Char9oa For / / ~ Services \ '/ 11% L~-~' Property - r Miac. V ~ Taxes "~ `~J <% BT% Olher Financlrq Sources 3% Taxable vs. 100Y. Assessed Valuations 4.ea 410 J.BD ,S 3.10 m a 2.b .. •. g° z19 ne...a tw v.iu.9oe 1.10 • Teaeble 9.fia v.ia.6ee 9eo 9°°` ode 9de 'pd 9° 9de 9°^ 9a 9M '~~ Fiecel YSer IFYI 1 s,w.ooo.ooo swo.aoo,oaa sxw.ooa.ooo saw.oaa,ooa E sxxiooo mo '> sma,ooo.mo siso mo mo swo.ooo.aoo uo.aoo,ooa t 2 ro~a .. 1.,.m. n..m.m~a v.m.uo~ m~..m.m Ths Ciry'e IeoWrtY iw rpueeb Iw FY20101hrouph Fv29121n4udIn91M FY2009 urti6stl tea re9wet. era ee /ollowe: e,~l 4 IIN: 1 fl 1011 $ ~0,4A9 ` O.Ifro Trens9 2,288.]62 0950 $ ),38/M1 U.9:-0 Twl LledWy 1.000.356 b119 g 105],160 0.421 LMe 650490 0,2]0 670 fi50 0.2]0 Suhblel: 23/62714 B.1]B $ 2 N71/0 8.]41 Spadel Rwenw Lavlse: Emer9enq 120.461 0.050 $ 1256]6 0.050 E ee Bewfils 8 134 59D 3625 $ 9 1]0 334 3.652 Suhblel: B 055 051 3.6]5 0 304 010 7.]02 Oebl Service 10.046.130 4.303 $ 11,6]]2]8 4135 %Cherps hom w 790% 1.13% 5.73% 0.91% A lend Le 4 235 3.001 1235 3.004 Tohl PropertyTwee { 13.16].130 ! 45,160,663 General Fund Revenue 1. Property Taxss 2. OIMf GN Taxes 7. Licensee 8 Petmite • Uw O/ Money 8 Propsry 5. Intsrpovemmenlel 6. Cherpes For Servlus 7. Mfacallenpus 8. OIMr Firuntirq Sources Tobl Revenue: %cnxq. from prbr r•er FY2008 FY2009 Fy2010 FY2011 FY2012 Actual Budusl Prolectetl Prolectad Protected 30.101850 31834063 33,160,803 34593,812 35,014,009 1,160,175 1, 202, 5 3 7 1, 205, 530 1, 226, 298 1, 24 ], 4 7 3 1,284,874 1,308.040 1,325,023 1,400,023 1, 336, 523 1,17],71] 1.218.541 819,755 119,155 619.755 3,957,610 9.715,331 3,696,660 ]642,244 3,710.0]4 4,372,269 1,433,802 5,573,939 5,5]3,939 5,5]3,939 1,590,185 1.835,507 1,829,453 7.829,453 1.829,153 2,691,1]5 1.256,669 /,223,856 3fiB,31B 330,274 546,882,455 552,864,521 548,835,019 549,353,842 519,661,390 s.ox usx -vew +ex osx Estimated Property Tax on 5100,000 Residential Valuation (Iowa City portion) FY2009 FY2050 5780.96 5815.02 FV2D09 Fy2010 Taxable Valualbn $ 44,080 $ 45,509 CItY Levy $ 17.717 $ 17.877 Property Taxes $ 780.90 $ 815.02 3 Fed Funds Rate Local Gor4mmoMY: 3aE •pmm~uMu r 903 169 1 J1 000 131000 131400 IC GOmme6en bmMerae r POd , 91,159 09,]68 00.384 104,561 109,(xl8 unry. Unrv Hp19MS.H brary 385363 m Counry~6nnlw Onnrm 15.000 pony Hpgnn-r a m s eu te.ew HngnN-6 enm nmwwy rvenlrypllpvn~iirePmNCrbn 3 1208908 1330130 1390 ~JB - 1J94316 - 5]034 Local GwmnmrMY Rarmrm- n brCreUne J1 ]t1 13.000 1J.000 1J000 AF 1 etlmel Pesa4NU 300.35 1)9.990 .fiJt 108,553 Bt <1] 131,98] 134.80] t3a,90] n TYY aYNA wnur:~b 8808 ]10000 R r iA Ownllrg Grnme irenan FRpule Expambn GnnI IJARCf 1,104 e91 - 8]3,008 ]0 000 8]3006 - 6]3,006 - 813.008 FE A N 368 , 33 00 SebNncp MA nl Rarunw: 5 5 5 5 0 merppvpmmm,Nl zan 4 Jun-0/ Jan-05 Jun-06 Jan-06 Jun-06 Jen-07 Jun-07 Jan-06 Jun-06 [NC-06 General Fund Expenditures by Category moo. moos mo+o more moiz e.ca vur Im soa iw goo ~°A ~°! Et°y 4~ ~ 4~° F~° G~°9.Gi° .~ ^.~~ Recel YSerIFl1 G.O. Debt Outstanding - by Fiscal Year - o Allowable Wahl Marpln ^ o~tranalnp Debt al July 7 G, / / hC~/'(G2 l ~~ COVER STORY ~~C/may by Chris Fabian, Scott Collins, and Jon Johrisor~ Getting Your Priorities Straight IS PERMANENT FISCAL CRISIS OUR TOP CONCERN2 x111 local government managers have seen what sometimes happens. Revenue growth is slowing, expenses are increasing, fund balances are dwindling, and it's perceived that these conditions will persist for the foreseeable future. As David Osbourne and Peter Hutchinson proclaim in their 2004 book, The Price of Goverri- me11t, we are in an `'age of permanent fiscal crisis!"' The National League of Cities identifies "local fiscal conditions" as a top issue,' while the U.S. Government r1c- countability Office anticipates `'persistent fiscal challenges." 3 Gu[ why do local government professionals befie~'e that this is the crisis? ~~'hat assumptions do we hold so firmly and that so calcify our thinking to convince us that changing I7sca1 conditions represent our crisis? Would higher revenues and lower expenses allow us to operate crisis free? Cdr does the true crisis -exist when, despite our fiscal realities, we don't focus on those priorities and objectives that ensure the success of our communities? THE CRISIS IS NOT FISCAL In Reengineering the Corporation, Michael Hammer writes that organizations suffer from "inuxibility, unresponsiveness, the absence of customer focus, an obsession with activity rather than result, bureaucratic paralysis, lack of innovation, and high overhead." Why? "1f costs were high, they could be passed on to customers. If customers were dis- satisfied, they had nowhere else to turn."`' Should we in government only now be concerned with flexibility, responsiveness, customer focus, and results because we can no longer afford not to be? Public Manaeement .June 2008 r~ ~ 1,~,~„e,~ < <, ~< <~~ ~~ ,.~r, I~,~~i~:~i;~ th~~ ~ - Li„ i~ n~,i .i li,~ ,il rri~i, I ni .ii u~ nd~ ,uul c~~uduion, arr h~ and I.u~~;e ,uu ul our cuntn~l anti ~inrl~l~ rci>rrtirnt a rr alit~~ kith ~~~hich ~~~~ aced to cults the real critiis on our handy i~ ~+hether nor orl,aniruinns have the capabilr- tic5 try addrrss runcnr (isc~tl rc.ditics and sill meet the objectives of grrv- crnnunt anti the cxhcctations of our constituents. ~~'hen facing declining growth in rcvenuc~, government leaders have al~prouched thc~ issue of balancing the budget in >nnil;u ~~~a~:~. ~~ recent ,u~ticle dcsrribcs Caliiurnia's ai~hruach to managing itti lisral realit~~~. l~he slwkrsntxn for the C~o~~ernur ;;riel. ~~In ~wr ~~ir~c- an ~u~ru>>-the-hoard ai~i,ruarh i, dr~i~~nrd to hr~~trct es- sential sen~ires. h~~ spreading those rrdurfion~ a~ r~~,~ttl~~ .~~ j~,~~~ibl~' <~, nn single progr;un get; singled itut for se- ~cre mduction~.~~ In response the state legislative analyst ~~~rutc. ~~thr ,~o~~rr- nor~s approach ~~~ould he lilu a famil~~ deciding to cut its nu~nthly nuu-rgage payment, dining-out fah. and Netllix subscription each b~ 10 percent rath- er than eliminating the restaurant and DV'D spending in order to l:ecp up the house pay meats- ' fhe I'iii~• ~~l (~r~~~rrnnirru describes more thorr~ughl~ the "~ Deady Sins~~ ur the sc~ en most annmonly imple- mented strategies that local govern- ments nse to manage their fiscal realities:" 1 . 12ub Peter to pay Paul. 2. Use accounting tricks. 3. Borrow. 4. Sell assets. 5. Male something up. 6. Nickel and dime the employees 7. Delay asset maintenance or replacement.. ~ r : ~a~'«~nK inC nix The figure for step I shows the five results developed by Jefferson County, Colorado. Results t)escri flan ofResu/ts ~f,iSC~ 173S~1slble -". .~. ~ - ., Qtarxgar>izationis>"~xri+it~'Udtt~~. ,s ~P wig +~ ~+A~Y t4he ~ Gov ear 5~k)r~ovauyoi{~yt~~ Our approach to land use planning and development produces Predictab/e growth and deve%R anent predictable results based on the overall land use vi~ipn for ttie~county, Ow planning processes result U balanced cor~rixtr~ties t(~t focus/ ~ P primary~ub creation, p<oviswn of open space, 2nd atGeetive~~^ ~ neiGhtwrhootls and comma^,;ties. .~„ :' Our trap portation sy~tcm is efiECtfv~ MObtlll ~0 bons ~ Y P aar~pon j[iori netvork is eRectlvetY p>"dt(~i ~ s t l rl ~ ~ d streets, art new;op regu a y mait amc wns Norttnvest Parkwv'y ; ~ .~ ~« Our employees are responsive to the needs of otx customers. Quality customer service Employees are ethical in their behavior and communicate effectively xrith our customers. Our approach to providing solo commun~tles is a ca{nbination of ., '.. - Safe communities proactive public safety services and courts cprnbrned wah a `"" ~ '~'~ '~` " ? entorcementof codes antl standards` Source: le/%rson Counfy, Co/oredo Objectives: • Results are clear, understandable, and measurable. • Results are the objectives and priorities of the board or council and the citizens. • Results accommodate potentially diverse board or council views. • Results incorporate majority as well as minority opinions. • Results are definable Keys to Success: • Strive to establish between five and 10 results.These should be the main priorities of the government. Not everything can be a priority. • Be broad but precise. "Safe community" as a result is broad, but it is also distinct. You can talk about what it is and what it isn't."Quality of life" as a result is broad, and it is also too ambiguous and subjective. • Results are the objectives and priorities of your council or board and the citizens.These are the primary stakeholders who must be directly engaged in influencing the results-development process. Revise results periodically, especially when these stakeholders change. • Recognize there are internal as well as external stakeholders. Draw a distinction between results of public programs and internal operating programs.The differing results will lead to differing evaluation and measurement. Although these strategies lead to Each member of the board or council does not need to agree on the vat- ... balanced budgets, do they redly assist j us in reaching our greater ublcctivc ue of each result if the opportunity exists foreach to express individual that o{ achieving results and meet- beliefs about which results should be of higher value. ing citizens' demands' Don't the}' ultimately lead to cost ctiltting that i _ __ __ ICMA.orglpm Public Management .~~ ~une294$_- i Road erM BrkJpn Snow Renwvn/ I~~In~~~ Roed nru/ Urrdyn ~ rnLia>rnx'rurn MnLrrnn.rncu •.: ~~ H/gMVeyn xnd lranspnrrru/on Pnnrnrrir>g :,rs/ lnapncuun> ?+ r~I~~~I~~~ IPwrd nnt> (MNlyx ~ /rnnk .!lj/rren urW Rwn/ MxrMkrg ,, , R P/arrrr/ng arrAZw/ng . L1iVdk>pnronr env Sufx)rvnrun P/annrny snar/n Cakra PrdYxnrkrr end ronr n/lnrr sperm. Pxrro/ enn rrnnr cornrol yy_ Ofarrlcf A/fpney - (:rlnw> Ayainsl L rrikknn '~. BuiM/ng /ntpec/w~>rr P rnr r ~ s ! Nrr. o> n UiKrrlcr Anumny L ~ (' 4 F P/nnniny xrrd Zoning / .. nd R lufnrrurr Lris(r/tt Ar/wrwy . Cri l nve.riyurrnr!s nrrr/ Cn>.> Prnpnrvhnn ~. Uisnk:t ArrorrwY ~ Uivorrirq Prrrrprr; /rurrr urea Cnr Y.srr. rrr C Ulsrrkr Arrorrrny ~ luvnni/er C;nrno Prrr.rcvoun ~ snorm. ai.,pmcn Sh[n/n ~ Ernuryoney Munxyunrorrr xnd Grrrrcn/lte.•~rwnsr~ A>sessor - Pr ~erty Apprnrsnls nrrrl Valunfrnn Appc D/srrk:r A«orney - Prn.ncrrnnrr .rf Cnurr t: rrsc. ffnvun f/eu//h Svc, ?..,,,,/.r , A:r rn.r Were r ih,. y rnnr<rrdr Jn.LOU Snrweas - Aherrn.wvo t lxr.mrrrm o/u//r. rv/or> corr,m„ vey F+nnhn s.;rvrcr... cnrn.nrrnrcnvfe dvns• L>rc~r•nnnrr • shnnn mmno-. w<,/,rrr.r ,,/. ,,, , . , .. shone- Srr~rkn/ L i~>re Ar Y>rs - tnvrra ,/exlUr _SVL] - Plsnr reg. Cr nrp/n~r r.ry ,.r, :ry n, r .rn,, <-r„rr,r.., snerin _ non,nvnn, j lusrrcr~ Scrvrccs - Fr crrra/ Sc. vrcc_ TtnxA and BrMge . Mrbinn Mnmrennnce (;rnnrs and cnnrnn orinns L~,mt._.r,~ Y,n,r.nrn „5ss,anrrr Clerk nnn /: erwder h1V - Vehicle L/cnnsrrrg and Tirrer_s r"r,rnnrrr r,A>srsrnn~e-sett,r„A,>,-,,.rnrr.,ndP,r,r<-~r,,,n5,,~,r-~. eranr: and c'nnnmrrvonx . Munr:r/ f/eohn Assrsh,nr.. . //u.'r/rh f'rornnhon and (//esry/c. Mnnnyemnrrr - !_ rri/dre~n w-.rh SPecrn/ Nvc+ds I length Prornuhon and Li/ns yles Manayemenr - Srrh+rnnre Ahrrcr C,'u<rrrse/iny ~.- _~ Trens<rrar - Cuflertinn and Uispnrcernnnr n/!>rnnrvrv In.rr•s' ,r,i,n _ 1 O/xn Sparc Trailn yn, Lonsh cn.,cd M, a rvncr. +~ ~' ~ ~ ~ Clerk and R<cordcr Elrctiors Cann I tit u L-lr.rr 1 Vn r.~ !. _ --_] urrlr/rr_n vnrrrn.nr/~;rrrr,n:rrru,.r~rr...rr. ~ ~-r„,rr., > -. a,_,r/ ,nr~r.,- rf L,rr/dsa,, r,Ln~,rrr_,rr r, 'r' --~ (. Id err. Y. / P .nral Training and Mcnroriny - -: --~ Sherif/ . Ar rnr.d C nn4ol nnrl Licensing -'=i= ~ r-~ Solid Wosre - LandNfl Munlrwing and Posf G/osure fc~srrng v~~_s~-C ~____ _ _ -_ ] snnrm- scnnol ROSOUrcc omr:en -- I Building /nspacrron - /n<pecrlnn o! Construction end Rernodrls ~~~-~- __/G. - ___~.`- Hcxd S[xrt - Endy /er-risk/ GnrMhood UevelopnwnL r ~~=~--.-..-. _ _.] Cornnrn city Nonhh Scwrtes ~ Mrnral F/ealrh/FCra/rt lcnhol Syndronrc -. -__ _~ .",___ _ Cunrmr,nity Health Services . Pre.narnl.vnA Chi/d Hnvlrh Csrc -'viM.r^: _sa _ ~] Comnnrniry Assisranco - /ncornc, Ur///tics, Food and Ncnhh Assisrnnr: r; I-----'.. --.--. ___ _ _ Grants and Conrriburiorrs -Economic Oevalopmenr Support (F COn Oov Councin --=f- -~~. _ ~:-J wnrk~ tor, neYrMpmenr ~ env r fining any F»aremenr _ Clerk RRecorder - OTCial RecdrAmg o/Real Estate Tran -~ _~ -- -" -__-"--- ---~ Conmunity De va/Dement -Housing Education and Flnencia/ASSrstence F/Qa/rn Promotion arrA Li/.sry/ns Manayemenf Nurnriunil //ca/rh EJUC'arion Open Space -Open Space AcquisR/ons Community pevefopnrcnr - Comnrunily Uc vcluprnanr Grants L/Ovary: Tcon E'AUCalional Programs Open Space .Perk Ranger Visit. r Services R Resource Protection ATOrt -Rental of Hangers and F-aCipY{es (:r;vnrs and GOntr/bur ons-Developm ra/y Oisab/eel Assistance Open Spate . Weed and Pest Cpnrro/ n r r,~ry . Bonks and Medi, C'rcu/noon CrT „pace Edueaiion A Vdhinfeer Services Prp9re s (ietlriHng Fliwnn [lhrary-CO/ , car AiCess _ _-~ cone F _ ,n ~,rr ra ~„yfn Deve/npm J C 'N - //y d C Sc'. /N ! r P g s - -~ H ch M 7 nA E 1 r / P uq (/~>cGiduvg G/R ShnP) _ C~ehrl N., ~; rn - Werhbngs/EVants/LOnlere es __~ rr,r :(•e ~r: r: rrr »nif Cr p 1 nt F-rgrnunds -- ~ Ca're~r Jarnr.i/ R "oriel HonlGU/tu EAUCatiOn.. Source: Jefferson County, Colorado E a a -- - anagamenx >~June 2Q98 in]pacls highl~~ dcsirrd u•n~ic~cs at tlic sanu• Icvcl as services that .uc rcla- ti~~cl~~ unimportant u/ ~ itizcn~~' l)un't they endanger guvernmm~t~,ti ability' to provide statruorily nuu]- datecl services while preserving those services that are simply nice to have? :Ind furthermore, what does this say about the strategies that governments would use to allocate resources when ]Wore revenue was available? hhe true crisis governments face is hardly fiscal; it's a crisis of pri- orities. How strategic are we, as lo- cal government professu>nals, about undcrstaniling what we do, wh~~ we do it, and (in times of scarcity as well as abundance) how we should invest our resources to achieve the results our communities need? While f~cus- ing un priorities sometimes takes a bacl: seat to other issues during times of fiscal stress, it's actually even more critical t~, makr pri~riti=ati~~n ;i t,,l~ priority/. PRIORITIZATION, ABETTER WAY TO DEAL WITH THE CRISIS Prioritization is a way to provide clar- ity abort[ how a government should invest resources in order to meet its stated objectives (and about what services could he funded at a reduced level ~~-ithout impacting those objcr- ti~ cs). Prioritization as a process helps us better articulate why the programs we offer exist, what value they offer to citizens, how they benefit the comnnt- nity, what price we pay for them, and what objectives and citizen demands are they achieving. The objectives of implementing a successful prioritization initiative al- lOW Us CO: • Evaluate the services we provide, one versus another. • Better understand our services in the context of the cause-and-effect relationship they have on the orga- nization's priorities. • Provide a higher degree of under- standing among decisionmakers as they engage in a process to rank services based on priorities. • Articulate to people in the organiza- _ _ •-~~~ .rra~ ...= 4vp-rarfRnrg program m tn]s county-w]de program prioritization was snow removal, while the bottom-ranking program was natural resources and hor- t(culturer Snow removal scored highest because the program was proven to have a significant influence on all of the county's results.The horticulture program had the least amount of influence of the results,This is the very definition of "Bang for the Buck" as, for every dollar spent on snow removal, Jefferson County achieves more of the results. tion and t~~ the public hove vve value our services, huvv~ vv~r invc~t in ~ntt l~riuritic~, and huvv wr div~c5i ~uu~- sclvcs of luvv~cr-priurit~~ x~rv~i~rs ~>v'hilc we arc nt>t adv-ucaling that public sector organiruiuns mimic our colleagues in the private sector, we (ind context in an unusual and unique private sector perspective from Jacl: Welch, (amrd chief rxecutive oflicer of GE: Every company has strong business ur product lines and weal: ones and some in between. i)i(Icrentiation tr- gLllrfS nlamlger$ tll knovl' \v'Inch 15 vehich and invest accurdini;l~~ ... (TJu do that you have to have a clear-cut dcfinilion of "strung.' At GE, 'strong" meant a business vvas No. 1 or No. ? in its market. If it wasn't, the managers had to lix it, sell it. ur close it ... diffcrcntiation anum~~ vour businesses requires a Iransparcnt framework that evrrv~unc in the cunr pang understands.' To meet our real crisis, a compa- rable approach should be applied by government leaders vv~hereh~~ our pro- grams are prioritized, which in turn encourages decisionmakers to recog- nize high-priurit~~ resuttrcc• allocations and differentiate them from those ul lovv° priority. THE PROCESS Off PRIORITIZATION The logic behind prioritization is that effective resource allocation decisions are transparent when the results of an organization can be identified and defined, when pro- grams and services can be distinctly (and quantitatively) evaluated as to their influence on any of the results, and when programs can be valued relative to one another and ultimate- ly prioritized on the basis of their impact on results. Successful execution of prioritiza- tion depends on three factors: ~ ~ ~ The figure in this step is from Fort Collins, Colorado's initiative to define the re- sult of "improved transportation:' Fort Collins used the Kaplan-Norton strategy mapping technique.* Note that the five categories in the oval closest to the result statement (traffic ' flow, quality travel surfaces, and so forth) are what the city believes are the pri- mary factors or indicators demonstrating the achievement of the result. Objectives: • Definitions should encompass all conceivable influences, causes, factors, and indicators that spell out the meaning of the result.These factors could be ex- ternal to your organization. • Definitions should be clear, comprehensive, logical, and measurable.They should depict the cause-and-effect relationship between the result and all identified influences on the result. Keys to Success: 'i • Focus on identifying all possible, logical influences and causes for each result. I Complete definitions are the key to linking programs and services to the re- sults they influence. Clear definitions for each result make it easier to deter- ~ mine a program's value. • Use teams to develop the definitions for results to ensure organizational buy-in. Even if the board or council does not agree with: a1f the identified in- fluences and factors for a particular result, members can identify which influ- ences and factors they believe are most critical to the achievement of a result in the scoring process. • Be Concise' in writing result definitfons.Avoid eloquent, overly articulate, and lengthy paragraphs.The purpose of result definitions is to guide and facilitate program scoring based on than program's influence on results. • Solicit the advice of subject-matter experts within your organization when developing results definitions; this adds value to the final product. *Robert $: Kaplan and David P. Norton;: Strategy Maps: Converting Intangible Assets into Tongible ~ Outcomes (Boston: Harvard Business School Press, 2004). _.Puhllc_Management_~juae2Q.0_ The right results. accurate pri- oritization of programs depends on- the comprehensive identification ICMA.orglpm The figure in this step is from Jefferson County, Colorado, and it shows the scoring process used for several programs offered by the sheriff's office. Objectives: • Each program, service, and project needing to be funded should be identified by name, by cost, and then rated as to its believed influence on results. • Scoring criteria should be established to allow programs to be compared, one with another, based on overall value to the citizens. • Scores should be reasonably assigned to programs on the basis of measurable evidence, not opinion. Keys to Success: • When defining programs, make sure they are neither too big (the sheriff's of- fice is not a program) nor too small (answering a-mails is not a program). • Link programs, services, and projects with a result by assigning scores based on their influence on that result. • Evaluate every identified program. • Expand the grading criteria beyond results to include other factors that give programs a higher priority. Qefferson County believed the more a program could pay for itself-in other words, be sustained by user fees-the lower would be the investment of county taxes in funding the program and, there- fore, the higher the priority of the program was to the county.) • Program scoring is inherently subjective. Minimize subjectivity by requiring performance metrics and other measurements to demonstrate how the pro- gram influences the result.Where measurements don't already exist, require 'program managers to develop theories abotat the cause-and-effect relation- ship a peogram has on a result, and test the theory.. • Require justification for all scores given.Tie performance evaluations to the scores. __ _ __ -- --._, _ blis_Maruagemenx. lane 2Q08 _ __ til IIII' R'>Ull•, tAi aft Ill l~u~in('„ I~~ :U i l l i.' \"t' • The right definitions. I'n ~ i~i~~n iii prioritizathm results innu the articu lation of tln~ causr-anti-elite[ rcla- uun5hip hci~~~rrn ~i program anti ,t result- With clearly defined causalit~~ and ;ut undcrstanduig u( the influ- I ences on results, we can niinimi~r suhjecti~~ity in linking programs with results. • The right valuation. With tits right I results and with clear definition; we can ~~ccuratcly ~aluc our pr~~r;ran~~ rclati~'c to tlicir inllucna• on a<hic~~ ing results. Stcp~ I. ~', .unl i ~h~_~~~ hu~~~ two jurisdictions addre5scd this isstt~. SUMMARIZING PRIORITIZATION: PUTTING IT ALL TOGETHER l~he final steps in the prioritization process in~~olve weighting the results, calculating program scores, anti de- veloping atop-to-bottom sununar~• of all programs, in approximate order of priori[}. It is critical that this process be completed before making any bud- getdecisions. This is a significant dry iati~~n Gent the budgeting-for-outcomes process because with the premisr outlined in this article, priuritizatio^ is the beginning of any resource allocation discussion. As in GE's differentia- tion process, using prioritization as- sumes that regardless of the amount of revenue an organization generates, regardless of a reasonably calculated price of government, and regardless of what amount of funding a board, council, or citizenry leek a particular result should receive, it is only when confronted with the end product of prioritization that resource allocation discussions can begin. CASE STUDY: JEFFERSON COUNTY,COLORADO Figure 1 shows the result of the Jef ferson Countds prioritization process, with atop-to-bottom profile of ever}' program offered to the public. The bar measurements indicate the prior- ~~ Note that the programs are scored on the basis of their relationship to each re- cult (see BCC/Public Results) as well as the basic program attributes.The county recognized that a program's influence on the stated results alone was not ad- equate to understanding the program's overall priority. ity score (the scale is 0 to ]00, and higher scores indicate ahigh-priority program). I~igurc 2 profiles the dollar amounts spent by Jefferson County on pro- grams offered to the public, in order of priority (where the top 25 percent of programs are Priority 1, the second 25 percent arc Priority 2, and so on). Without addressing the fiscal real- ~I ity facing Jefferson County, we can see that these extremely telling figures make statements about the appro- 'i priateness of this county's resource '~ allocation. Is the level of spending for Priority 3 or Priority 4 programs acceptable? Should the county con- sider shifting more dollars Priority 1 programs? If a significant revenue downturn suddenly occurred, should the county implement across-the-board budget cuts, or might the county use the prior- itization information to consider other alternatives about where to look first for potential spending cutbacks? Con- versely if revenues were unexpectedly higher, would the county implement across-the-board spending increases, or should the additional invesnnent he made in top priorities first? Jefferson County at the end of 2006. projected a $l2 million budget shortfall in the general land alone. With the adoption of the 2008 bud- get, 37 full-time positions were elimi- nated or not funded, and the budget in total was reduced by $13.7 million . without a single layoff. Cotmty Administrator Jim Moore observed: "This is the first year that a county budget has been less than the previ- ous year. This is especially remarkable given the rising costs that we must pay for fuel and other supplies and expenses." Of more significance, however, according to Todd Leopold, admin- istrative services director, was "that the discussions with the board and the departments shifted from fund- ing levels for programs to how those programs contributed to the county's overall mission and goals. At the end of the process, there was a much bet- ter understanding of what we do and why we do it." ICMA.orglpm Prioritization Process Summary Jefferson County, Colorado 200tl Vroposed Resourco Allocation, Basad on Priorities 1 through 4 SO (10,000,000 f20, 000.000 f30,000, 000 f~0,000, 000 ff0,000, 000 f80.000,000 f70, 000.000 L Y A b Y A a CRISIS AVERTED fhe biggest challenge we face in gov- ernment is not the ever-changing fis- cal conditions. Instead, the issue most often is a crisis of strategy. Recogniz- ing this, we believe that implementing prioritization is an effective way to combat crises. All organizations, espe- cially those that are stewards of public resources, establish values and objec- tives to meet the expectations of those for whom they exist to serve. Resources contributed by the com- munity or other constituencies are dedicated to achieve those established objectives, regardless of the cur- ~ ~ • ~ ICMA Center for Performance Measurement helps local govern- ments deliver results that matter in challenging times.lCMA-staff members work with communities to collect, clean, and report data in 15 service areas and`help to con- duct rigorous citizen surveys. Btad- get and policy decisions are results based, and local governments have .implementation tools. For more information, visit www.icma.org/ performance. Sours: Janorson ca.nry, co~oeao rent fiscal condition. As we evaluate the inventories of all programs and services offered, we would find it im- plausible to believe that each achieves those objectives to an equal extent. Prioritization offers an objective process that allows those responsible for resource allocation decisions to ensure that those programs of higher ' value to citizens, those programs that achieve the orgatiization~s objectives most visibly and effectively, can be susr~incd through adequate funding levels regardless of the fiscal crisis du ' jour. Whether there are more resources to distribute or fewer to allocate, prioritization guides that allocation toward those programs most highly valued by the organization and, most important, by the citizens who depend on those programs for their well-being, their comfort, and their expected quality of life. PM 'David Osborne and Peter Hutchinson, The Price of Government: Getting [he Re- sults We Need in an Age of Permanent Fiscal Crisis (New York: Basic Books, 2004). zChristine Becker, "Local Fiscal Con- ditions, Public Infrastructure Important Issues to NLC Members," Nation's Cities Weehly, December 3, 2007. "`State and Local Governments: Persis- __ __ _ .. r I r I 3 v i trnt ritical Chall/~n)tcs V1'ill I ikl•lr Lnu°rv,~c I , ~~1l hlll lilt' ~~t'\i i)CC;IdC, hrlr~~rl nip • , , (~,~1111~ IUNl1~•~' 1~1 a^.I I111,1;1~~1, ~).( I:. `, ~,,.,vcrnuu~nt .1rr,nultahiht~ l)Ihcc•, jul~ R~~X'•:~Cil$hlp ~kftls 1.11dAp~~rOa~GE1@8Tfi1t lti. zoo-ri ~ff~~tive h~anagters l~Fse ~`Michacl lianunrr and Janlcs Ctwnlp~. Nrrnt;i,trrrint; fhr (nrpl,rnti,ar :1 :A1nnlJru,~ ' ~, i Take a personal interest in others. url:: }latpcl for Bt+sincss Re~~nlutiun (New Y '~ Business, 14931- Otiffer h~l Burin a crisis. ~ ! • ~ g ~, Mike Zapler, "Governor's Depiction of ~ Honor the ego needs of others. rinances .~<c1lr;uc, tiolution I-;Ills Sh~~lt," ~ ~ Find a shared interest with colleagues. ' ~~feaury ,veins, Sacraulento Burrnl, Jams- ~ ` . ~iarif~-expeetatioMS. ary l5, zoo8. - ~ Usten carefully to learn the needs and agendas of others. hr Prier uJ "Osborne and Hutchinson, 1 i ~ ~ Eat together. Gnvernnlent. 'Jack ~'Velch. 11'inning, ~~•ith Suzy' ~\'clch f Earn trust by sharing credit, keeping confidences, and being (Nr~~ York: tlarlu•r Busiucss Publishers, trustworthy. ?u~>>). Take the first step. - i i i ' E i n jo nt tra n ng. ngage Chris Fabian is business process analyst, ' Use humor. Jefferson County, Colorado (cfabian@ • Make interactions authentic. leffco.us); Scott Collins Is sensor budget analyst, city and county of Denver, Colorado (Scott.Collins@denvergov.org) and a former budget analyst, Jefferson County; and )on Johnson is budget director, Jefferson County (jxjohnso@jeffco.us). Source: IQ Report. 2007."The Fine Art of Mana~in~ Relationships:' published by ICMA, Washington, D.C. (For information, visit bookstore.icma.org.) __ ~~I f~ - ~. ~, ~ ~~1 ; ~,~~ ~. ~~_ ,-