Burlington’s Priority Based Budgeting in a Transparent Environment Kevin Lahner, City Administrator Steve DeQuaker, Budget Officer/Treasurer

• Six Common Council Workshops in Basement of Police Station • Department Heads Presented Budgets “Line by Line” • Counting Paper Clips and Dixie Cups • Built in Budget Creep • No Policy in Budget at All

*Change the Budget Document

Organizational Values Mission Strategic Plan Policy Direction Long Range

Planning Budget

Document Budget

Implementation

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*Change how you talk to Council/Boards

* Link every decision back to policy

* Revisit and review the strategic plan

* Do you link your policy to the plan?

* Do your budget documents reflect these links?

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*Reduced Council Budget Workshops from 6 to 3

* Increased discussion of Policy Issues, reduced discussion of line items

* Publish Everything

* Increase staff level discussions/debate and preparation

*

“Success depends upon previous preparation, and without such preparation there is sure to be failure.” -- Confucius

*Purpose *Educational for residents of Burlington

*Obtain feedback on issues important to residents

* Increase transparency of City operations

*Additional perspective on City budget/process

*Obtain additional feedback on policy issues

*Appointment & Process *Each alderman appointed 1 member

*Mayor appointed 4 members

*4 meetings held in consecutive weeks in July and August

*Meetings conducted by the City Administrator, City Treasurer and Mayor.

*Appointment & Process *4 meetings

* 1 orientation meeting

* 2 Budget Information Meetings

* 1 Policy Priorities Meeting

*Policy Issues *Staff came up with 15 policy issue statements for

feedback from the Citizen Budget Partners (CBP)

*Pros and cons of each Policy Issue were presented to the CBP.

*Feedback from CBP and additional Pros and Cons were also addressed.

*CBP was then asked to rate the Policy Issues

*8 VOTES * The City should pursue the simplified rate case to

increase water rates each year.

*10 VOTES * The City should cut off water service for non-payment

of utility bills.

*14 VOTES * The City should continue to fully fund its Equipment

Replacement Fund.

*15 VOTES * The City should charge the full 8% for Hotel/Motel tax.

*16 VOTES * The City should maintain the current level of

funding for road maintenance at $500,000 per year.

*19 VOTES * The City should maintain the current level of

essential city services (road maintenance, plowing, park maintenance, public safety).

* The City should continue to provide Economic Development incentives to attract and retain industrial and manufacturing development.

• Department Heads are entrusted to do their jobs

• Common Council uses peer pressure to

focus on policy issues

• Increased trust throughout the community

• Positive Media Coverage

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* Burlington’s Priority Based Budgeting in a Transparent Environment

* Kevin Lahner, City Administrator * Steve DeQuaker, Budget Officer/Treasurer

*Langlade County

*2004 started a multi-year budgeting plan *Departments completed their 2004 Budget & 2005 Plan

*First year was not smooth

*Departments were not happy having to do two years of budgeting *Plans were not accurate for 2005 – They were more of a wish list *Plans were not very accurate until 2007

*2007 gave departments a tax levy number for the 2008 plan year

*This made the plan years more realistic *From 2007 forward we used the plans for the next budget w/minor

revisions

*2012 the Plan was instrumental in helping the County stay within budget *2012 County was projecting to be over the tax levy freeze by

$700,000 *Utilized the 2012 Plan early in 2011 to make the budget

process smooth *Finance Committee only had to find $99,754 to make budget

*2013 the Plan was used again and Finance Committee only had

to find $22,257 to make budget

*2014 we would like to have both years ready for approval

*Salary amounts

*Departments forgetting about amounts that spike year to year

*Getting Department Heads to think ahead more than one year at a time

*Leadership Buy-In

*Small County, no Administrator!!!

*GREAT Planning Tool

*Forecasting

*Identifying potential budget problems a year in advance

*Second year budget can be used to prepare the next years budget

*Proactive budgeting, instead of reactionary budgeting

ACS FINANCIAL SYSTEM LANGLADE COUNTY, WI

3/22/2013 15:22 Expenditure Budget Worksheet GL7A1R-V07.20 PAGE 1

GENERAL FUND

ACTUAL DOLLARS BUDGETS

12/31/2010 12/31/2011 12/31/2012 REVISED BUDGET

2013 PROPOSED 2014 PROPOSED

FINANCE DEPARTMENT

100.19.515300.0000.1110

SALARIES/WAGES-REGULAR 258,233.55 243,997.40 255,744.22 254,633.00 241,040.00 246,126.00

100.19.515300.0000.1120

SALARIES/WAGES- PART-TIME 5,867.47 3,092.63 1,448.99 1,885.00 1,885.00 1,885.00

100.19.515300.0000.1130

SALARIES/WAGES-OVERTIME 299.97 194.46 559.16 0 *------------* *------------*

*