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HomeMy WebLinkAbout12/10/2002, 1 - GOAL-SETTING PROCESS FOR 2003-05 council M.fitiD. 12-10-02 IJIL acEnoA REpoRt 'pm�°° CITY O F SAN LUIS O B I S P O FROM: Ken Hampian, Assistant CAO Bill Statler, Director of Financen `"t4 SUBJECT: GOAL-SETTING PROCESS FOR 2003-05 CAO RECOMMENDATION Approve the goal-setting process for 2003-05. DISCUSSION Background On September 3, 2002, the Council approved the goal-setting and Financial Plan schedule for 2003-05, including the conceptual approach to Council goal-setting as part of this process. Under this approach, we will continue using a multi-year budget that begins with the Council setting goals for the most important things for the City to accomplish over the next two years. Based on our experience over the past twelve years, this has been a successful process in assuring that the fundamental purpose of the City's budgetary process is achieved: linking what we want to accomplish for our community over the next two years with the resources necessary to do so. Summary of Significant Changes The proposed goal-setting process for 2003-05 will has three key differences from 2001-03: 1. More Opportunities to Participate at the Community Forum. There will be one-to-one discussions, group discussions by topical area with City staff members as information resources,' reports back to all attendees, a feedback form for each participant to identify desirable options and an opportunity for any additional comments individual participants may wish to make. This will encourage a broader range of participation and more emphasis upon participants learning from one another. 2. Prioritization of Carry-Over Activities As Well As New Ones. As the Council budget workshop on November 15 highlighted, there are significant carry-over items from the current listing of major City goals. Prioritization of these items as well as potential new items will be part of the process. Thus, Council Members will look at the "whole plate"— how they want to prioritize what's next with the items already on the plate, as well as what they might wish to add. This will give a more complete picture of the City's priorities. 3. Examination of Potential Revenue Enhancements and Cost Reductions. In light of anticipated fiscal constraints, the discussions with both the public and the Council will include opportunities to comment about the desirability of potential revenue enhancements and/or expense reductions that may be necessary to balance the budget. Goal-Setting Process for 2003-05 Page 2 We believe that the net results of these improvements will be a clearer and more complete picture of the community's preferences for the City's finances. Two-Step Approach With the November 15 "Setting the Table"workshop as a foundation,we again recommend using a "two-step" approach to the Council goal-setting process. As previously approved by the Council, Don Maruska will serve as our facilitator at both workshops. 1. Community Forum. Held on the evening of Tuesday,.January 14, the purpose of this forum is to solicit suggested goals and work programs from Council advisory bodies, community groups and interested individuals. In notices sent to these groups, we have requested that written suggestions be provided to us by January 3, 2003. To ensure that adequate space is available for this workshop, it will be held in the Auditorium and adjacent rooms at Laguna Middle School. 2. Council Goal:Sening Workshop. Following the receipt of written and oral comments at the January 14 Community Forum, the Council goal-setting workshop will be held on Saturday, February 1, in the City/County Library Community Room. Goal-Setting Process Exhibits A, B and C describe the proposed objectives, guidelines, schedule and roles for both the community forum and goal-setting workshops, summarized as follows: Community Forum The January 14 community forum is intended to solicit suggestions from Council advisory bodies; community groups and interested individuals on proposed City goals and fiscal issues. City staff will summarize the results of the forum and distribute them to the Council by Monday, January 21, 2003. Council Goal-Setting Workshop At the all-day February I workshop, the Council will review the consolidated summary of goals presented by Council members to ensure clarity, completeness and understanding; and then narrow the list to finalist goals that are supported by at least three Council members. After this step, the staff will prepare a final listing that the Council can use in prioritizing goals. In 2001- 03, the Council used a ranking system of 5 through 1 for each candidate goal, summarized as follows: 5—Most important, highest priority for City to achieve over the next two years. 4—Very important goal to achieve. 3—Important goal to achieve. 2—Address if resources are available. 1—Defer to 2005-07 for consideration. Depending on the number of candidate goals, total points available to individual Council members has ranged in the past from 50 to 75—about 3 points per candidate goal. For example, I � l Goal-Setting Process for 2003-05 Page 3 if there are 15 goals in the final listing, then 50 points might be about right; if there are 25, then 75 might be appropriate. Staff will summarize the results of the Council's ranking during a break at the workshop. Based on our past experience, it is likely that three priority"tiers"will emerge from this process: 1. Major City Goals. These represent the most important, highest priority goals for the City to accomplish over the next two years, and as such, resources to accomplish them should be included in the 2003-05 Financial Plan. If the work program approved by the Council for a Major City Goal is not included in the CAO's Preliminary Financial Plan, compelling reasons and justification must be provided as to why resources could not be made available to achieve this goal. 2. Other Important Goals. Goals in this category are important for the City to accomplish, and resources should be made available in the 2003-05 Financial Plan if at all possible. 3. Address As Resources Permit. While it is desirable to achieve these goals over the next two years, doing so is subject to current resource availability. The goal-setting process also will elicit the Council's interests in potential revenue enhancement and service reduction possibilities in order to support desired goals, especially in light of the very tough fiscal outlook facing the City. If needed, continued consideration of goals for 2003-05 is scheduled for the next regular Council meeting following the workshop (February 4, 2003).. Council Homework Assignment Provided in Exhibit D is the Council's "homework assignment" for the February 1 workshop. It requests that Council members prepare and submit their seven candidates for Major City Goals by Friday, January 24. These will then be consolidated with other Council member goals based on common themes and distributed to all Council members on Tuesday, January 28 for review and consideration before the workshop. Major City Goal Criteria Provided in Exhibit E is the suggested "criteria for major City goals" which have been used by the Council for the past ten years. Extensive Notification We have made extensive efforts to invite community and advisory body participation in this process, including: 1. An extensive series of briefings and follow-up reminders with advisory bodies on their important role in the process. New for 2003-05, this include a two-step process that provided each advisory body with an opportunity to review the "first round" draft goals from all other advisory bodies before finalizing their recommendations to the Council. I - 3 Goal-Setting Process for 2003-05 Page 4 2. Notices to over 200 community groups and interested individuals inviting them to submit written suggestions and participate in the community forum. 3. "Community Budget Bulletin" inserts in our utility bills requesting goal suggestions from our citizens and inviting them to participate in the community forum. This will reach about 14,000 households. 4. Notice in our Winter parks and recreation class brochure about the goal-setting process. 5. Display ads will be run in January in The Tribune and New Times. Goal-Setting Workshop Notebooks To help organize all the background information that Council members will receive as part of this goal-setting process, notebooks will be distributed by Tuesday, January 7, 2003 with the following twelve sections: 1. Agendas for the January 14 community forum and February l goal-setting workshop. 2. Status of current goals and objectives. 3. Likely carryover goals and"spin-off'tasks from 2001-03 into 2003-05. 4. Suggested goals received by January 3 from community groups and interested individuals (additional submissions received after this date will be distributed to the Council in a three- hole punch format for inclusion in the notebook). 5. Suggested goals received from Council advisory bodies by January 3.. 6. Responses from the "Community Budget Bulletin" survey as of January 3 (additional submissions received after this date will be distributed to the Council in a three-hole punch format for inclusion in the notebook, along with an updated summary). 7. Results from the May 2000 Citizen Survey. 8. Five-Year Fiscal Forecast (presented to the Council on December 10, 2002). 9. Summary of results from the January 14 Community Forum (to be distributed by January 21). 10. Consolidated Council member goals(to be distributed by January 28). 11. Other background information such as the 2003-05 Financial Plan schedule, Budget-in-Brief, selected materials from the "Setting the Table" workshop held on November 15, outlines for the community and goal-setting workshops, Council homework assignments, criteria for major City goals and Financial Plan policies. 12. Notes and space for other supplemental materials that the Council may receive. Council Goal Work Programs: Major City Goals After the Council finalizes goals and objectives for 2003-05, the staff will prepare detailed work programs for each of the Major City Goals. Based on past experience, it is important for the Council to reach consensus not only on the objective for Major City Goals, but also on the program, action plan and resources that will be needed to accomplish it as well. Unless the staff fully understands the scope and timeframe that the Council intended, we cannot identify needed Goal-Setting Process for 2003-05 Page 5 resources; and without this understanding, the Preliminary Financial Plan may significantly over (or under) fund the desired work effort. In short, before the staff begins to build the Preliminary Financial Plan around Major City Goals, it is essential that we have a clear understanding of what the Council hopes to achieve with each Major City Goal over the next two years. Accordingly, the purpose of each work programs is to: 1. Define and scope the adopted goal. 2. Ensure that there is a clear understanding of the goal so appropriate resources are allocated, and progress can be measured in achieving it. This is especially important in the case of objectives where fully achieving the goal is likely to extend well beyond the two-year Financial Plan period. However, we can measure progress— and our success in accomplishing the goal—by clearly defining the specific actions we plan to undertake over the next two years. We plan to present the work programs for Major City Goals to the Council on Thursday, April 10, 2003. As discussed above, programs and projects related to goals in the other two priority categories will be reflected (and highlighted) in the Preliminary Financial Plan. Goal-Setting Calendar The following summarizes key dates leading to the February 1 goal-setting workshop: Council Goal-Setting Calendar When --what Friday,January 3 Finance receives suggested goals from advisory bodies, community groups and interested individuals. Tuesday, January 7 Council receives goal-setting notebooks. Tuesday, January 14 Council holds community forum. Tuesday,January 21 Council receives written results from community forum.. Friday,January 24 Council members submit goals to Finance. Tuesday,January 28 Finance distributes consolidated goals organized by similar themes. Saturday,February 1 Council holds goal-setting workshop. Next Steps The Financial Plan calendar approved by the Council on September 3, 2002 is provided in Exhibit F. After the goal-setting workshop, key dates in the budget process include: Goal-Setting Process for 2003-05 Page 6 Remaining K ,ff Dates When What Tuesday, February 4 Follow-up to Council Goal-Setting,If Needed. Continued Regular Meeting consideration of goal-setting at the next regularly scheduled Council meeting following the February 1 workshop if needed. Monday,February 18 Mid-Year Budget Review. Consider the City's fiscal status at the mid Regular Meeting point of the fiscal year and make appropriation adjustments as necessary. Thursday,April 10 Major City Goal Work Programs. Review and approve detail work Special Budget Workshop programs to accomplish major City goals; provide other budget direction as needed. Thursday, May 15 Preliminary Financial Plan. Receive 2003-05 Preliminary Financial Plan and Appendices A&B: Significant Operating Program Changes and Capital Improvement Plan (CIP)Projects. Thursday,May 22 Budget Workshop. Review the Financial Plan and consider General Special Budget Workshop Fund operating programs. Tuesday, May 27 Budget Workshop. Consider General Fund CEP projects. Special Budget Workshop Thursday,May 29 Budget Workshop. Consider Enterprise Fund operating programs,CIP Special Budget Workshop projects,revenue requirements and rates. Tuesday,June 3 Budget Workshop. Continue to discuss and receive public comment Regular Meeting on the Preliminary Financial Plan. Tuesday,June 17 Public Hearing. Continue to discuss and receive public comment on Regular Meeting the Preliminary Financial Plan; adopt the budget. SUMMARY Council goal-setting is an important "first step"in the City's Financial Plan process. In fact, it is important to stress just this fact—it is the beginning of the budget process, not the end. Setting goals—and subsequently approving work programs for major City goals—is not adoption of the budget. As reflected in the budget schedule above, this will not occur until June 2003, following issuance of the Preliminary Financial Plan and extensive budget workshops and hearings. EXHIBITS A. Outline for Community Workshop (January 14) B. Outline for Council Goal-Setting Workshop (February 1) C. Guidelines for Council Members During the Goal-Setting Process D. Form for Council Members to Submit Candidate Goals E. Criteria for Major City Goals F. Financial Plan Calendar G:FinanceBudget Folders/2003-05 Financial Plan/Council Goal-Sening/Council Agenda Reports/Goal-Setting Process ( tel Exhibit A Community Forum 6:30 p.m.-9:30 p.m. Tuesday, January 14, 2003 Laguna Middle School 6:30 Welcome Mayor 6:35 Process, Current Goals, and Fiscal Outlook CAO 7:00 Public Discussion—Each attendee writes suggestions for goals on sheets of paper. Each person then finds some one,whom he or she does not know well,reads partner's goal, asks "Why is this goal important to you?" and writes response.. 7:20 Group Discussions by Budget Topics– 1) attendees post their goals on the appropriate wall space of the meeting space for the topic and cluster similar ideas together, 2) City staff discuss links with current programs, and 3)participants explore alternatives, revenue enhancement and service reduction possibilities and summarize results. [City staff serve as facilitators.] 8:10 Brief Report from Each Group (with individual comments where desired for clarification) 8:50 Discussion of Revenue Enhancement and Expense Reduction Options 9:20 Participants Complete Summary Feedback Foran 9:30 Participation Prizes and Close Preparation • Prepare handouts on budget process and fiscal forecast to expedite review. • Provide poster boards for each of the major budget categories with current and continuing program activities and budget allocations. • Set up the room with a gathering area for each of the budget categories. • Assign staff members to facilitate group discussions. • Prepare summary feedback form for attendees to note suggested priorities and recommendations. • Give participants coupons for final prize drawings (City t-shirts,mugs, etc.) to reward those who stay to discuss issues with their neighbors. Outline of Summary Feedback Form • List most desired new initiatives • Write most important current goals to continue. • Indicate which revenue enhancements, if any, deserve further consideration • Identify potential areas to consider service reductions, if needed, to balance the budget. I Exhibit B Council Goal-Setting Workshop 8:30 a.m.-4:00 a.m. Saturday, February I, 2003 City-County Library Community Room 8:30 - 9:00 a.m. Refreshments 9:00 - 9:05 a.m. Welcome and Introductions Mayor 9:05 - 9:10 a.m. Purpose, Process &Guidelines Facilitator 9:10—Noon Review Goals by Category Council Discuss Relationship of Goals to Current Activities Formulate and Select Candidate Goals Discuss Revenue Enhancement or Service Reduction Possibilities [staff writes candidate goals on flip charts] Noon— 12:15 p.m. [Council may accept further comments from the public that have not been previously presented] 12:15— 1:15 Lunch Break [staff compiles candidate goals] 1:15 - 2:15 p.m. Discuss and Weight the Goals Council Clarify Goal Statements Each Member Prepares a Written Ballot Ranking the Goals 2:15 -3:15 p.m. Tabulate Results Staff 3:50 -4:00 p.m. Review and Identify Major City Goals Council 4:00-4:30 p.m. Discuss Next Steps Council/Staff Preparation • Staff compiles and distributes composite list of candidate goals to Council members • Staff prepares a template for Council ballot sheet • Assign staff to record goal statements as Council formulates them � -8 Exhibit C Suggested Guidelines for Council Members During the Goal-Setting Process 1. Encourage advisory boards, community groups and citizens to submit written comments about desired goals. 2. Invite citizens to participate in Community Forum and to listen and learn from their neighbors. 3. Receive comments from community and acknowledge their input without prematurely expressing your point of view. 4. Assure the community that you are willing to listen openly to all perspectives. 5. Focus your submission of suggested goals on a short list of key priorities to target City resources. 6. Avoid publicizing your submission of suggested goals. Let staff compile your submissions verbatim into a composite list of goals by category without identification of who made each suggestion. This enables you to see the whole picture. 7. Give yourself flexibility by not publicly staking positions in advance of the February 1` Council Goal-Setting Workshop. 8. Use this process as a way to learn from citizens and Council colleagues about what's important. 9. Explore areas where the Council can come together for positive action. 10. Recognize that this is an important step, but only the first step, in the planning and budgeting for the next two years. 1 -9 Exhibit D.1 Council Member Candidate Major City Goals Please write your 7 candidates for Major City Goals below and submit them to Finance by January 24, 2003. Finance will then compile a verbatim, composite list by topic without identifying who submitted the particular statements. Please refrain from releasing your personal list so that each Council member has flexibility to review all of the submissions and discuss them at the Council Goal Setting Workshop before staking a position. Electronic versions of this form will be provided to you. O 0 0 Exhibit D.2 Possible Measures to Achieve the Goals and Balance the Budget Potential Revenue Enhancements for Further Consideration. Please list any revenue enhancement opportunities (fee increases, tax measures, etc.) that you would like the Council to discuss at the February 1 goal-setting workshop. Potential General Fund Service Reductions for Further Consideration. In the event that expense reductions become necessary to balance the budget; in which areas would you like the staff to assess the possibilities? Please check off any that you'd like considered. Public Safety Community Development ❑ Neighborhood and Crime Prevention ❑ Planning: Development Review: ❑ Police Investigations ❑ Planning: Long-Range Planning ❑ Police Traffic Safety ❑ Building and Safety ❑ Police Patrol ❑ Engineering: Development Review ❑ Fire Emergency Response ❑ Engineering: Capital Projects ❑ Fire Hazard Prevention ❑ Natural Resource Protection ❑ Disaster Preparedness ❑ Community Promotion Transportation ❑ Economic Development ❑ Transportation Planning General Government ❑ Pavement Maintenance ❑ General Administration ❑ Sidewalks ❑ Human Resources/Risk Management ❑ Traffic Signals and Signs ❑ Financial Management ❑ Street Lights ❑ Information Technology ❑ Creek and Flood Protection ❑ Building Maintenance Leisure, Cultural & Social Services ❑ Fleet Management ❑ Recreation Programs Other Services ❑ Park Maintenance ❑ ❑ Swim Center ❑ ❑ Trees ❑ ❑ Cultural Services ❑ ❑ Social Services ❑ Exhibit E Criteria for Major City Goals 1. Be legitimate to our beliefs (real, supported). 2. Agreed upon by a Council majority. 3. Reduced in number for comprehension, communication and focus. 4. Set forth in one document—the Financial Plan. 5. Be clear and understandable. 6. Established as a high priority and a real commitment. 7. Translated into the objectives of employees at all levels of the organization. 8. Created within a supportive atmosphere where participants are not afraid to state their suggestions for improving goals or objectives. 9. Accepted to the point where resistance to them is reduced or eliminated. I - f� Exhibit F 2003-05 Financial Plan Schedule August 21, 2002 ■ Mayor and CAO send letter to Council advisory bodies on their role in the budget process. September 3, 2002 ■ Council approves 2003-05 Financial Plan process and calendar. November 1, 2002 i Finance sends letters requesting participation in goal-setting process from advisory bodies, community groups and interested individuals; and begins inserting Community Budget Bulletins in utility bills. November 15,2002 ® Special Budget Workshop. Council holds study session on the status of General Plan programs; long-term capital improvement plan (CIP); status of Major City Goals,other objectives and CEP projects; and general fiscal outlook for 2003-05. December 10,2002 ■ Special Budget Workshop Council considers Financial Plan organization and policies; reviews annual financial report for 2001-02; considers results of five-year fiscal forecast; and finalizes goal-setting process. January 3,2003 ■ Finance receives written comments from advisory bodies,community groups and interested individuals. January 5,2003 ■ Finance holds budget"kick-off'briefing; issues Budget Instructions. January 14,2003 ■ Special Budget Workshop. Council holds community forum. February 1,2003 ■ Special Budget Workshop. Council holds goal-setting workshop: discusses candidate goals presented at January 14 workshop; discusses Council member goals distributed on January 27; prioritizes and sets major City goals. February 4, 2003 ■ Council finalizes goals and priorities. February 18,2003 ■ Council considers mid-year budget review. March to May 2003 ■ Departments submit budget requests. ■ Budget review team analyzes requests and meets with departments. E CAO finalizes budget recommendations. April 10,2003 ■ Special Budget Workshop. Council approves goal work programs. May 15,2003 ■ Finance issues preliminary budget. May 22,27,29,2003 ■ Special Budget Workshops. Council holds evening budget workshops: • May 22: Financial Plan overview and General Fund operating programs. • May 27: General Fund CIP projects. • May 29: Enterprise Fund programs, CIP projects and rates. May 28, 2003 ■ Planning Commission reviews CIP for General Plan consistency. June 3, 17, 2003 ■ Council holds continued hearings; adopts budget. Council Meeting Dates in Bold I- � 3