HomeMy WebLinkAbout12-18-2012 b3 Proposed Changes to the Financial Plan Document to Improve Navigation and User Experiencecouncil Meeting Dat e12-18-1 2'Item Number B 3Aacenea aepont
C I T Y O F S A N L U I S O B I S P O
FROM :Katie Lichtig, City Manage r
Prepared by : Michael Codron, Assistant City Manage r
SUBJECT :PROPOSED CHANGES TO THE FINANCIAL PLAN DOCUMENT T O
IMPROVE NAVIGATION AND USER EXPERIENC E
RECOMMENDATIO N
Review proposed changes to the Financial Plan document and provide staff with direction on th e
changes to incorporate into the 2013-15 Financial Plan .
DISCUSSION
Following the adoption of the 2011-13 Financial Plan, staff solicited feedback from the Cit y
Council to learn what worked and what could be improved about the process . A significant amoun t
of feedback provided was in relation to the fmancial plan document itself. Council Member s
indicated a desire to reduce overlapping content, eliminate the need to flip between the mai n
•document and appendices, improve electronic links and access to budget related materials, an d
simplify or "streamline" the document without losing transparency .
This feedback from Council provided the objectives for a recent work effort to revise the curren t
Financial Plan format . Staff is now recommending that Council conceptually approve a revise d
Table of Contents (Attachment 1). The revised Table of Contents presents a new approach t o
organizing the information in the Financial Plan to improve navigation and user experience . In
general, the proposed organization groups like topics in a way that will improve documen t
navigation and allow for a logical narrative to accompany detailed financial information .
In developing this recommendation, staff has reviewed budget documents prepared by othe r
agencies and considered recommendations from the Government Finance Officers Associatio n
(GFOA). The City of San Luis Obispo received the Distinguished Budget Presentation Award fo r
the 2011-13 budget documents – as it has for many years running – and the revised budge t
document for 2013-15 is intended to continue to meet or exceed the standards set by thi s
professional organization . The proposed revisions are detailed in the body of this report .
Backgroun d
The purpose of the City's Financial Plan is to link what the Council and the community want t o
accomplish over the next two years with the resources necessary to do so . In doing this, th e
Financial Plan document plays four roles :
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1 .Policy Document.It sets forth goals and objectives to be accomplished, and the fundamenta l
fiscal principles upon which the budget is prepared .
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Financial Plan Document Revisions Page 2
2.Fiscal Plan .It identifies and appropriates the resources necessary to accomplish objectives an d
deliver services ; shows where resources come from and how they are used ; ensures that th e
City's fiscal health is maintained by demonstrating the ability to pay for budgeted services ;
3.Operations Guide .It shows how the City is organized to deliver sery ices ; describes programs
and activities ; and provides workload measures for city services ;
4.Communications TooL It provides the public, policy makers and staff with a blueprint of ho w
public resources are being used and how these allocations were made ; and communicates key
economic and fiscal issues as well as all the steps taken to be prudent fiscal stewards .
Functional Area Presentatio n
The Financial Plan presents operating programs, Capital Improvement Plan (CIP) projects and deb t
service costs on a functional area basis, which represents a grouping of related operations an d
programs that may cross organizational (departmental) boundaries aimed at achieving a broad goa l
or service . No change to the presentation of information based on functional areas is proposed . Th e
six functions in the Financial Plan are :
1.Public Safet y
2.Public Utilities
3.Transportatio n
4.Leisure, Cultural & Social Service s
5.Community Developmen t
6.General Governmen t
The organization of information in this way helps focus the budget on what will be accomplishe d
rather than who (which department) is responsible for managing the service and the funding sourc e
(although this information is also included in the Financial Plan). In fact, based on feedbac k
received from Council, staff is proposing a new section that will include detailed fmancia l
summaries with graphics for each City department .
Financial Plan Appendices
In addition to the Financial Plan document, two Appendices provide supplemental detai l
information :
1.Appendix A provides detailed information on all proposed Significant Operating Progra m
Changes (commonly referred to as SOPCs).
2.Appendix B provides detailed information on each proposed Capital Improvement Plan (CIP)
project .
These appendices provide important additional information ; however, Council Members hav e
expressed frustration with the need to flip between multiple documents to get the full budge t
picture. As a result, staff is proposing to eliminate the appendices from the printed version of the
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Financial Plan Document Revisions Page3
• document and include new summaries for SOPCs and CIP projects within a single financial pla n
document . The detailed infonnation would continue to be made available on-line, and direct link s
between electronic versions of the documents would be provided .
Proposed Changes
The changes proposed to the document fall into three principal categories :
1 . Reordering of existing information to create a logical narrative, provide better context fo r
the presentation of fmancial information, avoid unnecessary duplication of information, and
improve overall navigation of the document :
a.The preface and introduction will be reorganized, with additional descriptiv e
information brought forward from various sections of the document .
b.The digital version will have a fully linked table of contents and keyword s
throughout the document will be linked so that information is easier to cross -
reference .
c.The Policies and Objectives section will be renamed Goals and Objectives and th e
policies will be relocated into the reference section at the end of the document . Sub-
tabs will be provided to improve navigation between and among Council goals .
d.The Budget Graphics section has been renamed Budget Summary and will b e
divided into distinct categories for revenues and expenditures so that relevan t
financial information can be presented along with brief written narratives for context .
e.The information included in Section G (Changes in Financial Position), and Sectio n
H, (Financial and Statistical Tables), will be relocated to the Reference section at th e
end of the document . Some of this information, such as Revenue Summaries ,
Staffing Summaries and Financial Trends will be brought forward to mor e
appropriate sections so that the information is presented in the proper context .
2 . Inclusion of additional information and analysis, including department level budge t
summaries :
a.New departmental summaries will include key information about City departmen t
operating budgets, Full Time Equivalent (FTE) staffing levels, functional are a
responsibilities, and revenues from service charges .
b.Operating program descriptions will include easy to reference and understan d
financial information and less narrative regarding program activities . More detai l
about SOPCs will be provided, as well as information about CIP projects an d
proposed revenue enhancements so that the complete picture of each operatin g
program is presented in one location .
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Financial Plan Document Revisions Page 4
3 . Expansion of SOPC and CIP summaries within the main fmancial plan document i s
proposed so that the publication of separate appendices can be eliminated :
a.A new template has been prepared to summarize SOPC write-ups . The SOPC write -
up will be included along with its operating program description in Section D . The
write-up will allow for Appendix A to be eliminated, reducing one of the thre e
separate books that currently make up the financial plan . The full SOPC write-u p
will still be available electronically as a resource for staff, the City Council an d
members of the public who are interested in additional detail on specific proposals .
b.Similarly, a new template for CIP summaries has been prepared . The new summarie s
will be incorporated into Section E along with other CIP information, allowing fo r
Appendix B to be eliminated . Full CIP project write-ups will still be availabl e
electronically as a resource for staff, the City Council and members of the publi c
who are interested in additional detail on specific projects .
4 . Improved electronic navigation . The fmancial plan document will be printed and mad e
available as a hardcopy, but as users of electronic documents continue to increase, it i s
important to enhance the functionality of the online document .
a.A detailed table of contents will be provided with links to each chapter and sub -
section of the document .
b.Internal navigation will be improved through keyword linking throughout th e
document .
c.External navigation to background documents, City department web pages, and othe r
key information will increase the usefulness of the document .
A draft Table of Contents including page number references to the current financial plan is attache d
(Attachment 1). In addition, staff has prepared a mock-up document for the Council to review .A
hard-copy is provided in the Council Reading File, and an electronic copy will be distributed via e -
mail to the Council . These mock-up pages include samples of new content, including :
•Departmental Summar y
•Operating Program Description
•SOPC Summary
•CIP Summary
During the December 18`h meeting staff will present the electronic mock-up document, whic h
follows the draft Table of Contents, for discussion .
FISCAL IMPAC T
The project will have no fiscal impact . Additional costs for divider tabs in the main document wil l
be offset by reduced printing costs from the elimination of the appendices .
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ALTERNATIVE S
1.The Council may provide staff with direction on changes to the proposed Table of Content s
or mock-up pages as presented in Attachment 1 and 2 .
2.The Council may decide to not make any changes to the structure of the financial pla n
documents during this financial plan period .
ATTACHMENT S
1 .Draft Table of Content s
COUNCIL READING FILE
Mock 2013-15 Document based on information from the 2011-13 Financial Pla n
\\chstore6Veam\oounal agenda reporls\2012~2012-12 18budget foundaton- doojment thanges\oar (document changes).docx
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Attachment 1
Proposed Budget Outlin e
November 201 2
Preface
a.Directory of Officials and Advisory Bodies (A-23 )
b.Adopting Resolution (1-14 )
II .Section A - Introductio n
a.Budget Message (A-1 )
b.Financial Highlights (A-13 )
c.Measure Y Funding Summary (A-20 )
d.Budget Process Overview (i )
e.Goal-Setting and Strategic Budget Process (vi )
f.How to Use the Financial Plan Document (iii )
III .Section B - About the Cit y
a.About the City (v )
i . Demographic and Statistical Summary (H-55 )
b.Organizational Chart (A-24 )
c.Mission Statement/Organizational Values (A-21 )
IV .Section C - Goals & Objective s
a.Overview (B-1; beginning with Council Goals )
b.Council Goals Summary (B-26 )
c.Major City Goals (B-29 )
d.Other Important Objectives (B-58 )
e.Status of Past Major City Goals (B-69 - New Heading )
V .Section D - Budget Summary (New Section )
a . Overview (New )
b . Revenue and Expenditure Trends- Last Five Completed Years (H-51 )
c . Revenue Summar y
i.Summary of Key Revenue Assumptions (H-2 )
ii.Total Funding Sources - All Funds Combined (C-3 )
iii.Revenues by Major Category and Source (H-6 )
iv.General Fund Revenues (C-13 )
v.Enterprise and Agency Fund Revenues (New )
vi.New or Increased Taxes and Fees (H-49 )
vii.Summary of Revenue Enhancements (H-12 )
viii.Discussion of Various Revenue Enhancements (H-13 )
d . Expenditure Summar y
i . Expenditure Trends by Type : All Funds Combined (H-52 )
ii . Total Expenditures by Type - All Funds Combined (C-2 )
iii . Operating Program Expenditure Summary (C-4 )
iv . Capital Improvement Plan Expenditure Summary (C-6 )
v . Debt Service Expenditure Summary (C-8 )
vi . Total Expenditures by Fund (C-9 )
vii . Expenditure Trends by Type : General Fund (H-53 )
1.General Fund Expenditures and Uses (C-10 )
2.General Fund Operating Program Expenditures by Function (C-11 )
3.General Fund Operating Program Expenditures by Type (C-12 )
viii . Expenditure Trends by Type : Enterprise Funds (New)
ix . Summary of Significant Operating Program Changes (D-18)
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Attachment 1
e . Departmental Summary (New )
i . Administration Department Overview (New )
H . Attorney's Office Department Overview (New )
Community Development Department Overview (New )
iv.Finance and Information Technology Department Overview (New )
v.Fire Department Overview (New )
vi.Human Resources Department Overview (New )
vii.Parks and Recreation Department Overview (New )
viii.Police Department Overview (New )
ix.Public Works Department Overview (New )
x.Utilities Department Overview (New )
VI .Section E - Operating Program s
a.Overview - Purpose and Organization (D-1- D-3 )
b.Authorized Regular Positions by Function (H-44 )
c.Temporary Full-Time Equivalents by Function (H-45 )
d.Summary of Operating Program Expenditures and FTE's (New Pie Charts )
e.Operating Program Narratives
(See Revised Format— Reduce narrative, add pie charts for context on budget and FTE's ,
enhance SOPC descriptions, summarize related CIP's and revenue enhancements if any .)
VII .Section F - Capital Improvement Pla n
a.Overview (E-1 )
b.Summary of CIP Expenditures by Function (E-2 )
c.Summary of CIP Expenditures by Funding Source (E-3 )
d.Project Detail and Phasin g
e.Project Descriptions by Functio n
(See Revised Format — Half-page project descriptions provided for Years land 2 . Simpl e
project descriptions provided for Years 3, 4 and 5 )
VIII .Section G - Debt Service Requirement s
a.Introduction (F-1 )
b.Description of Debt Obligations (F-2 )
c.Annual Payments by Function (F-4 )
d.Annual Payments by Source (F-5 )
e.Computation of Legal Debt Margin (F-7 )
IX .Section H - Budget Reference Material s
a . Overview (I-1 )
b . Budget and Fiscal Policies (B-5 )
c . Summary of Major Policy Documents (1-2 )
d . Changes in Financial Position (G-1 )
i.Overview
ii.Organization of the City's Fund s
iii.Summary of Changes in Financial Position (C14 and C-15 )
iv.Changes in Financial Position by Fund (G-3 )
e . Interfund Transactions (H-32 )
f . Pension Obligation Cost Trends (H-46 )
g . Retiree Health Care Obligations (H-48 )
h . Appropriations Limit History (H-54 )
Major Preparation Guidelines (1-9 )
j.Budget Glossary (1-5 )
k.Awards (A-25)
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