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HomeMy WebLinkAboutFIN 2019-09-09 Item 2C - Budget - Priority Based Budgeting and Performance MeasuresCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Finance Department; Director Vicky Carlsen BY: Jeremy Brecher-Haimson & Lilly Ferraz, Management Analyst Interns CC: Mayor Ekberg DATE: September 9th, 2019 SUBJECT: Priority Based Budgeting Update: Performance Measure Timeline ISSUE Provide timeline of activities for Priority Based Budgeting Process Phase II: Performance Measures. This will be carried out in preparation for the upcoming 2021-22 Budget Cycle. BACKGROUND Priority Based Budgeting is a best practice tool which aligns an organization's programmatic work more closely to its strategic goals and mission. In Tukwila, we have broken down the process into two phases, and we are currently in Phase 2. In 2018, in preparation for the 2019-2020 Budget process, the city completed Phase 1 of the Priority Based Budgeting (PBB) process: Tiering City Programs in the General Fund. This involved Department Leadership defining their programs and ranking them in alignment to City Strategic Goals and Basic Program Attributes. This process helped the City of Tukwila answer the question: How essential are our programs? Phase 1 confirmed that the City was in fact allocating its resources to the most essential and high priority programs. In the General Fund, 67% of the City's General Fund programs aligned with the City's updated adopted strategic plan goals and priorities (i.e. they were ranked in the top two tiers). Additionally, some departments have already begun making strategic programmatic decisions using the Priority Based Budgeting criteria. As planned, city staff have begun the process to tier projects in other funds. The next phase in Priority Based Budgeting is to integrate Performance Measures into all departments in the city. This process can help the city answer the question: How effective are our programs? We know that some departments already use performance measures and data to inform their work. We are building upon existing efforts, refining performance measure purpose and practice, and formalizing them across the entire city's programs. Both activities can be used as a tool to assist Council to make informed policy and budget decisions, as well as departments to improve their service delivery to community members. INFORMATIONAL MEMO Page 2 DISCUSSION Performance measures are tools to track the quality and/or quantity of services that a program is providing. They are used for employee service improvement, council decisions, and community review. There are three categories of performance measures that the city will be using to track success: - Program Outputs: captures what a program is creating or providing o For example: Potholes filled within 24 hours of notice - City Outcomes: portrays the lived experiences of community members o For example: Pavement condition index - Quality of Life Indicators: highlights high level perceptions of community members (typically through a community survey) o For example: Percent of residents who believe they can travel within Tukwila in a reasonable and predictable amount of time Process of Collaboration: City staff have surveyed several other cities who use performance measures to learn best practices and avoid common pitfalls. A key lesson learned was to take the process slow and ensure full staff collaboration. This is to ensure that the performance measures created are a useful lens to determine program effectiveness, rather than as a disciplinary device. The process implementation facilitates discussion and engagement by involving every city employee, beginning with department -wide Performance Measure Workshops. To ensure consistent communication, the Priority Based Budgeting Team have: - piloted the workshops with Department Heads - met with Department Champions (staff leaders) to tailor workshop language - sent an all -city email describing the Priority Based Budgeting process, and are - meeting with Supervisors to provide useful language for interested employees (See Attachment I). This iterative process has created a collaborative atmosphere, and the work of the Priority Based Budgeting process reflects this input. (See Attachment II). Fall & Winter Planning: The Priority Based Budgeting Team is piloting the process with the Finance and Public Works Departments. The first stage of creating performance measures will be completed by the end of December. Then, the Departments will meet in small teams to review performance measures (See Attachment III). They will decide which measures they will track internally and give recommendations for measures that will be presented in the upcoming biennial budget. Council will have several opportunities to comment on performance measures, including after department and cross -department committee processes (See Attachment IV). Community Engagement Plan: The Priority Based Budgeting Team plans to have several check -ins with various community groups and stakeholders, such as the Tukwila Connectors Program, the Equity & Social Justice Committee, the Chamber of Commerce, and Foster High School Student Groups. This is to ensure the performance measurement activity is in line with community priorities. The team seeks to gather feedback and ideas on what community members see as high priorities for the city to measure and report. Community groups will provide input on questions such as: 1) How would you know whether the city government is doing a good job? Z:ICouncil Agenda Items\Finance109.09.191Priority Based Budgeting Update Memo_Finance Committee.docx INFORMATIONAL MEMO Page 3 2) What does a high "quality of life" mean? Can you relate it to any aspect of the City of Tukwila Strategic Goals? 3) What performance measure could we create to show this connection? RECOMMENDATION: For information only ATTACHMENTS Attachment I: All -City Email Attachment II: Priority Based budgeting PHASE II: Create Performance Measures: Department Attendees and Champions Attachment III: Performance Measures — Implementation Timeline Attachment IV: Stages of Phase II: Creating Performance Measures Z:\Council Agenda Items\Finance109.09.191Priority Based Budgeting Update Memo_Finance Committee,docx INFORMATIONAL MEMO Page 4 ATTACHMENT I: ALL -CITY EMAIL All City Staff, All of us work every day to provide the best quality of service to our communities; and that means prioritizing what's Essential to our Strategic Goals and understanding the Effectiveness of our Programs. With Priority Based Budgeting, we're accomplishing those two goals. I would like to provide an update of where we have been with priority based budgeting and talk about the next phase we are launching throughout the city. In Phase 1, as part of the 2019-2020 budget process we invited you to help us begin Priority Based Budgeting. We organized our Departments into their functioning programs, and tiered them based on their connection to our Strategic Goals. We're now in Phase 2, where we are asking all employees, "What makes your Department's programs effective?" by creating performance measures together in workshops. wa pro:,�ram; V/4 OF la t.xb aY•y epar: cr'it nAr Progrd n, Connection to St atcg;c Goal: improved O , t of Service f o r e Y"t r7 f Y C: (;:Lt A tool to track the quality anti/or quantity of services a program is providing. Employee Service Improvement, 4 cult rill Decisions F Corrtnnir ity Review There will be several steps as we create performance measures meaningful to you and your department. 1. Staff Create Performance Measures: First, all staff will provide input on how departments can determine that they are providing high quality services, by creating performance measures. 2. Department Leadership Review: Then, performance measures will be reviewed by Department leadership. Some will be selected for internal use and some externally for the budget. 3. Cross -Department Review: The cross -departmental committee from phase 1 will review and finalize the external performance measures to use in the budget process. 4. Community & Council Review: Throughout the process there will be check -ins with various community groups to get input on how they would know the City of Z:\Council Agenda Items\Finance109.09.191Priority Based Budgeting Update Memo_Finance Committee.docx INFORMATIONAL MEMO Page 5 Tukwila is performing well. Council will also approve the final list of performance measures for the 2021-2022 budget. Both tiering and performance measures will be used as a budget process tool to understand how the City of Tukwila measures success. These performance measures will also be used regularly to facilitate discussion in your own Department, and this is your chance to begin the conversation together on how the programs you operate improve the quality of life for residents & employees in Tukwila. Many of you already use performance measures in your programs, and we're excited to bring data -driven discussions into the budget process. We're beginning the process over the next month with two pilot Departments, Finance and Public Works. By the end of this year we plan to engage all Departments for the 2021-2022 budget in these workshops. Stayed tuned for updates on what they create, and when your Department is scheduling workshops for you! Sincerely, David David Cline City Administrator Z:ICouncil Agenda Items\Finance109.09.191Priority Based Budgeting Update Memo_Finance Committee.docx INFORMATIONAL MEMO Page 6 ATTACHMENT II: `Priority Based Budgeting PHASE II: CREATE PERFORMANCE MEASURES' Department Attendees and Champions If ,1 f r, ,/l/�l',�'` l fr ���, a ,.ti��iP IN NOW rr' 4qr �OW f� ,,,r�I.IA il'mr r ark y;f � ✓ r t1 �� I D� 9;! Battalion Chiefs "l'tipr r fir,,, a w 1� IU�I�ill�� TBD Fire Chief Wittwer Police Chief Linton TBD TBD Admin Dept Rachel Bianchi, Juan Padilla TBD TBD Parks & Rec Craig Zellerhoff, Tracy Gallaway, John Dunn, Stephanie Gardner, Robert Eaton, Kris Kelly TBD TBD Public Works Henry Hash, Han Kirkland, Gail Labanara Han Kirkland, Gail Labanara September 17th DCD Jack Pace, Kia Shagena Kia Shagena TBD Finance Aaron Williams, Jeff Friend, Sherry Wright Sherry Wright, Aaron Williams, Jeff Friend, Sept. 5th TIS Joel Bush TBD TBD Administration Team All Department Heads *Met individually and in two ADMIN meetings Aug. 20th Z:1Council Agenda Items\Finance109.09.191Priority Based Budgeting Update Memo_Finance Committee.docx City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM ATTACHMENT III: Performance Measures - Implementation Timeline Calendar year 2019 Month J .A SOD J F 14:[ A .,'1 ,>< ,1 A 6 Illlhl'y 1111011111 11 1. Departments Data Collection & It awing Public Works, DCD, Finance Department PM Trainings All Department PM Trainings 1111111Yi4VIViI! +ti7� 2020 �lol�"�SNP�i6� i.. ; �r,u �,i�i i,,. i if, Pit in „�I 1 t� Dui, �! ti , l�i (I ,1� j11 2. Pilot Departments Finalize PMs Pilot Dept. Committees led by Directors Propose Full List of PMs 114 All Department Committees led by Directors Propose Full List of PMs u 3. Community Advisor Committee Rei, ien Presentation to Committee & Revisions 4. Cross -Department Committee Review Presentation to Committee, Revisions, & Final PMs Approved 5. Council Approval Update provided to council at finance committee Cross -Department Committee Presents Final PMs to Council 6. Departments Prepare Budget Departments Begin Tracking PMs & Include in Budget Submission 1111■■■■■■■■■1111■■■ ■IE■■111■■■■■■■■ i11 �VI !C 11111'1,111,11 I�II� ■■■■■■■■■■■■■■ 1111■■■IM■■■■I■■IIM •■■��u■i■■u■■■ ■11111■■■1111■■■■■11■■ • ■■�■■■■■■®■■R■■ i. tip �r;, �.:� r�i iimiq il 1w i d , �I MUM ■1111■■■111■■■ii-il®ri ♦ l.Viemo,Deliverable ❑ Meeting -- Pilot Departments: Public Works; DCD, & Finance 2nd Round Departments: All other Departments — All Departments City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM ATTACHMENT IV: STAGES OF PHASE II: CREATE PERFORMANCE MEASURES Aug -Jan 2 Check in ith Community anodd Council)