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HomeMy WebLinkAboutFIN 2019-02-11 Item 2A - Budget - Priority-Based Budgeting UpdateCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Council Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: February 6, 2019 SUBJECT: Update on Priority -Based Budgeting ISSUE Provide an update on the status of implementing Priority -Based Budgeting. BACKGROUND As part of the City's 2017 work plan, staff reviewed the current budget process and recommended enhancements to the 2019-2020 process by adopting the Priority -Based Budgeting (PBB) model. Work to implement this model began in earnest in 2018. Implementing PBB is a multi -year effort and this memo provides a recap of the work completed as well as a high-level overview of the next steps. DISCUSSION Implementation of PBB began in the early part of 2018. The City contracted with the Center for Priority -Based Budgeting, also referred to as ResourceX, to provide assistance with identifying programs, reviewing the City's adopted strategic goals, and scoring the programs. Total paid to the Center was $28,500. Accomplishments Several steps were completed in 2018 including: • Community outreach to review strategic goals and gather input for community priorities • Council amended strategic goals to include objectives on: o Equity, particularly with regard to race o Gentrification and displacement o Health and environmental health o Infrastructure o Technology and innovation • Departments identified programs in the general fund • 2019 and 2020 general fund budget was allocated to programs • All programs that were identified were scored against the City's strategic goals and basic attributes. Basic attributes include: o Level of mandate to provide program o Reliance on City to provide program o Cost recovery o Portion of community served o Change in demand • Scored programs were then reviewed by a peer review team to ensure consistency and objectivity with scores 1 INFORMATIONAL MEMO Page 2 • Programs and scores were provided to the Center and the Center, through a proprietary calculation, allocated the programs to tiers. • Program information by tier was included in the 2019-2020 budget document. Next Steps Priority Based Budgeting will continue in 2019 and the following steps have been identified: • Reviewing the scoring process and adjusting basic attributes as needed (2nd quarter) • Finalizing the formula for scoring and allocating programs to tiers so that this process can be done in-house (2nd quarter) • Identify programs in the utility funds, golf course, and capital project funds (3rd and 4th quarters) • Identify performance measures to ensure programs are meeting the needs of our communities (begin 2nd quarter) • Continue community involvement through various outreach opportunities (ongoing) RECOMMENDATION Discussion only. 2 llcitystorelCity Common\Council Agenda Items\Finance12.11.1911nfo Memo Update on PBB.docx