1. Lea Eriksen July 10, 2013

2. Priority-Driven Budgeting Presentation Outline Overview of Cincinnati & Why Priority Driven Budgeting Citizen Engagement City Council Policy Direction Follow-up & Next Steps

3. City of Cincinnati Population: 296,550, CMSA 2.1 million Land Size: 77 Square Miles, CMSA 3,343 Square Miles Location: 54% of the nations population & 53% of the nations manufacturing establishment reside within 600 miles of Cincinnati Composition: 52 Neighborhoods

4. City of Cincinnati Founded in 1788 Chartered as a village in 1802 Incorporated as a city within Hamilton County in 1819 Mayor is elected to a 4-year term through a direct election There are nine Councilmembers, elected at large to 4- year terms City Manager Form of Government City Manager is appointed by the Mayor with prior approval by the City Council

5. Office of Budget & Evaluation Economic Development Division Office of Communications Office of Environmental Quality Cincinnati Human Relations Committee Southwest Ohio Regional Transit Authority (SORTA) City Contractual Boards Board of Health Park Board Recreation Commission Boards and Commission Departments Fire Department Public Services Department Police Department Law Department Human Resources Department Community Development Department Transportation & Engineering Department Finance Department Enterprise Technology Solutions Greater Cincinnati Water Works Sewers Planning & Buildings Department Citizen Complaint & Internal Audit Duke Energy Center Parking Facilities Enterprise Services City Manager Mayor & City Council Citizens of Cincinnati Retirement

6. Why Priority Driven Budgeting? Base Budgeting Program Based Budgeting starting in 2008 No clear consensus on strategic priorities for the City No clear prioritization process between programs Process starts out with across-the-board cut Recession Impact and State Shared Revenue cuts

7. Cincinnati Priority-Driven Budgeting - Step by Step Process Step 1 - Identify City Priorities Step 2 - Develop Strategy Maps Step 3 - Review Existing Programs and Identify Decision Units Step 4 - Score Decision Units Against Priority Results Step 5 - Compile and Compare Scored Programs Step 6 - Allocate Resources Based on Prioritization City Council Policy Direction Citizen Engagement

8. Public Meeting Process Novak Consulting conducted 6 Open to the Public meetings

9. Public Meeting Process Novak Consulting conducted 8 Focus group sessions with the following targeted populations: o City Board and Commission members o Community Council leaders o Large employers o SBE/MBE/WBE o Socially disadvantaged o United Way service recipients o Health Clinic patients o Senior Citizens

10. City of Cincinnatis Results Commerce and Jobs Inclusive, Thriving and Livable Community Safe Community Sustainable Built and Natural Environment Well- Planned and Developed Infrastructure Leadership and Financial Stewardship (Governance) Efficient and Effective Basic Services (Quality Management)

11. Commerce and Jobs Invests in programs, incentives and technology that support business attraction, growth and retention Provides for a functional transportation network that offers efficient, accessible and reliable mobility Promotes quality job creation and retention that encourages individuals to locate and stay in the community Provides leadership in developing opportunities that stimulate the regional economy Encourages and fosters the development of small businesses that provide for the basic needs of neighborhoods Invests in maintaining a safe, attractive and thriving community that supports a well-balanced mix of businesses

12. Inclusive, Thriving and Livable Community Equitably provides for the health, welfare and basic needs of the community Supports the community's public education system Promotes a diverse variety of recreational opportunities and cultural amenities that contribute to a high quality of life Develops and maintains quality parks Ensures a variety of safe, quality housing options Cares for its most vulnerable population Fosters an environment that embraces diversity and encourages inclusion Promotes, encourages and preserves healthy, attractive and livable neighborhoods

13. Safe Community Offers protection to the community, enforces the law and responds to emergencies with professional, well- prepared and well-equipped resources Offers activities and intervention programs that promote positive youth development Fosters a community of safe, attractive, well-maintained and revitalized neighborhoods Provides safe, well-maintained public infrastructure Ensures regulatory compliance and enforcement in order to abate nuisances and protect the property and lives of its residents Proactively works to prevent crime through holistic, proactive community policing and establishing a visible, responsive presence

14. Sustainable Built and Natural Environment Restores, revitalizes and maintains its historical assets and resources Leverages it's natural assets and resources to beautify the community and maintain a thriving, healthy environment Educates the community and partners with residents and business to protect and preserve its environmental resources Protects, maintains and preserves its active and passive open spaces Advances community sustainability through the implementation of best practices and the exploration of green technology Maintains its high standards for preserving environmental quality Ensures proactive code enforcement to provide for a safe, healthy environment in which to live and work

15. Well-Planned and Developed Infrastructure Invests in reliable, accessible and environmentally responsible infrastructure (roads, streets, sidewalks, bridges, storm drainage, utilities) and sanitation systems (trash, recycling, solid waste) Effectively provides a safe, affordable and reliable multi-modal transportation network Provides timely maintenance, repair and replacement of its physical assets

16. Leadership and Financial Stewardship (Governance) Ensures timely and effective two- way communication with residents and businesses, provides equal access to information and encourages input from the community Maintains and develops an efficient, well-trained and productive workforce Protects, manages and invests in its financial, human, physical and technology resources Supports decision-making with timely and accurate short-term and long-range analysis, focusing on long-term financial solutions that benefit the community Instills trust and fosters transparency by demonstrating accountability, responsiveness, integrity and innovation Provides assurance of regulatory and policy compliance to minimize and mitigate risk Fosters and supports emerging community leaders Models and promotes civility, cooperation and open-mindedness Advances City interests through collaborative partnerships with other elected officials

17. Efficient and Effective Basic Services Listens and responds to the needs of the community in a timely manner Continually measures and reports its success through the use of performance indicators and data-driven decisions Purses alternative methods of service delivery that are cost- effective and successful in meeting the community's needs Provides for the delivery of high quality basic services that are operated efficiently

18. Public Meeting Process 241 people shared basic demographic information 102 from the Targeted Populations o The majority indicated they have attended fewer than 5 City sponsored meetings over the past year. 139 at the Open Meetings o The majority have attended fewer than 4 City sponsored meetings over the past year.

19. Public Meeting Process Who Participated Meeting Population 2010 Census Data Male 41% 48% Female 59% 52% Under 20 1.5% 26.2% 21 to 64 69% 69.5% 65 or older 29.5% 10% African American 39.3% 44.8% Caucasian 56.8% 49.3% Hispanic or Latino Ethnicity 3.7% 2.8%

20. Public Meeting Process Who Participated Meeting Population 2010 Census Data Renters 25.7% 61% Home owners 72.6% 39% Income: Under $23,050 $23,051- $49,999 $50,000 and $74,999 $75,000 to $99,999 $100,000 to $149,999 $150,000 or more 22% 19.3% 22% 10.1% 15.6% 11% 40.8% 24% 22.8% 8.7% 6.5% 6%

21. Electronic Participation Emails - 337 organizations plus forwarded: o Email sent April 4, 2012: 786 recipients o Email sent April 15, 2012: 2,383 recipients o Email sent April 20, 2012: 930 recipients City Website/Twitter o 593 clicks to PDB page on City website o 12 Tweets sent to 2,000 followers and retweeted to a combined 10,000 followers

22. Electronic Participation Wiki/Facebook o 1,102 clicks to wiki o 228 clicks to Facebook Number of Facebook Page Likes by Age Group & Sex

23. Validation Survey Outreach Statistically Valid Survey 3,000: Surveys mailed to randomly-selected sample 665: Responses received Provide 95% confidence level with margin of error +/- 4% Participants tested the Strategy Maps Took $100 exercise

24. Validation Survey Outreach Online Survey - $100 Exercise 2,486: Emails with online survey 1,700: Online surveys completed 11,000 (approximate): Persons reached via tweets/retweets 200: Business cards distributed with link to online survey In person - $100 Exercise 66: Councilmembers, Neighborhood Summit Participants, Union Leaders

25. Testing the Citys Results City of Cincinnati, Ohio Determination of Result Weighting Factors Addressing Limited Issue V Summary of the $100 Exercise 2 0.25 City's Results Statistically Valid Citizen Surveys In-person Surveys On-line Citizen Surveys TOTAL SPENT Result Weighting Factor (Combined) Commerce and Jobs 15,700$ 1,363$ 18,605$ 35,668$ 1.87 Inclusive, Thriving and Livable Community 8,792$ 1,394$ 15,144$ 25,330$ 1.33 Safe Community 18,840$ 1,585$ 24,690$ 45,115$ 2.37 Sustainable Built and Natural Environment 8,164$ 849$ 10,046$ 19,059$ 1.00 Well-Planned and Developed Infrastructure 9,420$ 1,237$ 18,185$ 28,842$ 1.51 OTHER 1,884$ 174$ 8,430$ 10,488$ 1.00 TOTAL 62,800$ 6,601$ 95,100$ 164,501$ Sources of Survey Results

26. Testing the Citys Results

27. Resource Alignment Diagnostic Tool Results 57 Programs 78 Programs 80 Programs 57 Programs

28. Score Programs against Results & Attributes Basic Program AttributesCity of Cincinnati's Results MANDATED to Provide the Program RELIANCE on the CITY to Provide the Program COST RECOVERY of the Program LEVEL of DEMAND for the Program COMMERCE and JOBS INCLUSIVE, THRIVING and LIVABLE COMMUNITY WELL- PLANNED and DEVELOPED INFRASTRUCTURE SUSTAINABLE BUILT and NATURAL ENVIRONMENT SAFE COMMUNITY LEADERSHIP and FINANCIAL STEWARDSHIP (Governance)

29. City Council Policy Direction Administration construct a budget based on the following factors: Use the information from the Priority Driven Budget process to recommend elimination or reduction of functions based upon whether other organizations or entities are serving the same populations or providing the same function. Recommend changes to mandated programs that exceed the minimum requirements of the mandate. Identify functions that can be shared with other political jurisdictions. Identify functions that, rather than eliminate them, can be made self sufficient through the establishment of a fee structure.

30. City Council Policy Direction Results recommend elimination or reduction of functions based upon whether other organizations or entities are serving the same populations or providing the same function. o 5 programs were eliminated or scaled back that fit into this category o All Quartile 3 or 4 o Examples included: o Juvenile Firesetter Program o Child Seat Installation Program o Pools

31. City Council Policy Direction Results Recommend changes to mandated programs that exceed the minimum requirements of the mandate. o 19 programs are mandated, but ranked Quartile 3 or 4 o Six are under review or reduced o Examples included: o Human Resources Services (Civil Service, Testing, etc.) o Cemetery Maintenance Program o Vital Records Program

32. City Council Policy Direction Results Identify functions that can be shared with other political jurisdictions. o 17 programs/services are under review, examples include: o Regional Crime Lab o joint procurement o joint use of public safety training facilities o provide human resources services to other jurisdictions (training, civil service testing, etc.) o centralize printing and stores

33. City Council Policy Direction Results In total, 27 total quartile 3 and 4 programs were severely reduced or eliminated in the FY 2013 and FY 2014 budgets

34. OVERVIEW

35. Follow-Up & Next Steps Held three follow-up sessions with Citizens o October 2, 2012 General Session o November 5, 2012 Environmental Quality session o February 16, 2013 Neighborhood Summit Formed Citizens Budget Committee o Members of City Staff (union and Administration) o Community Members Conducting Citizen Engagement Experiments o Cincinnati Open Budgeting Priority Driven Budgeting Next Full Round FY 2016-2017