1. Simplifying the Budget Process
Lindsey Duncan– City of Surprise
Brandi Suda – City of Flagstaff
Candace Cannistraro – City of Mesa

2. How the Budget Process Can Seem
What can we do about it?

4. No More Preliminary Budget Books
When is it too much information?
What information is actually valuable?
Full preliminary budget books take a considerable amount of staff time for both content and formatting
Department schedules, Financial Schedules, 200 plus pages
Replaced with Summary of Proposed Budget
Assumes they have the current budget book and outlines just the changes, 26 pages, bookmarked electronic council report
Gives an overview and status of the various funds and overall budgetary pressures
Gives an overview of significant changes in department budgets
“This is the best summary of the budget we have ever had.”
“We don’t need to meet with all the departments. It’s all right here.”

5. Coordinate Related Processes
Timelines are aligned with annual budget process
Process coordination and oversite is done centrally
All financial information is reviewed centrally
Requires additional staff time and effort
Avoids conflicting information being presented
Avoids the surprise factor
What did they just say?!

6. Fees and Charges Process
OMB reviews and presents all documents from departments to City Council in a comprehensive manner.
Department staff are in attendance for specific questions or background regarding the fee.
Ensures adherence to the 60 day legal posting requirement
Increased standardization of reports/information
Increased efficiency of presentation of information
Provides a logic check for departments

7. Utility Rate Modifications
One consolidated report and presentation is created for all five Mesa utilities
OMB Director leads presentation and serves as facilitator
Adoption of new rates are aligned with adoption of budget
Unified voice in rate and structure recommendations
Ensures adherence to legal requirements
Focus on overall health and sustainability of the Enterprise fund

8. Roundtable Question
How do you ensure Budget staff and Department staff are speaking the same revenue/expenditure story?

9. Replace What with
Line item budgeting allows for tracking the type of expense but it doesn’t say why the expense was needed
Mesa discontinued giving line item information to the City Council, including removing all but the City level schedule from the budget book
Long discussions with Council and requests for additional information regarding travel, professional services and such went away
But what do we give them then?

10. Mesa’s Budget Documents
No Divisions or Sections
Only Expense Categories

11. Roundtable Question
What type of documents do you share with your Council for budget review?

12. Performance/Activity Based Budgeting
What are the overall goals/vision of the City?
What is the department’s public purpose? Why do they exist?
How does what we do align with the city’s goals/vision?
What are next year’s goals/objectives for each department/program?
How will they know if they are successful?
What resources will it take to be successful?

13. How do you incorporate Performance Management in your budget process?
Roundtable Question
How do you incorporate Performance Management in your budget process?

14. Developing the Budget with City Management
Finance meets with all departments on budget requests including
Revenue estimates
Change requests (supplemental requests)
Capital Projects
Budget prepares a list of change requests
Based upon capacity for additional positions and programs categorizes Yes, Not Now, Maybe
Finance prepares a recommendation for the City Manager
City Manager approves recommendation or adds/requests changes

15. Roundtable Question
What role does the budget workgroup play in meetings with/recommendations to City Management?

16. Position Requests
Description
Justification

17. Human Resources Review
HR reviewed and classified every position requested based on the form
Now, HR is given list of positions along with description and justification
HR reports approximate grade for personnel estimates
Upon approval, HR performs formal analysis

18. Straightening the Pipes Effort at the City of Flagstaff
Goals
Simplify & improve the
process for both users and finance staff
2. Shorten entire budget process from beginning to end
3. Save time & effort for all

19. Straightening the Pipes Key to Success
Key to our success was obtaining feedback at all levels in the organization.
Surveyed all employees that were involved in the budget process
Held meetings with employees at all levels within the City
REMINDER: Check-in and reevaluate further changes

20. Straightening the Pipes Obtaining Feedback
What did we ask and discuss:
Usefulness of materials provided by Finance
How well they thought they understood the various budget steps/processes
Quality of communication they receive
Feedback on some ideas the Finance staff presented for improvements

21. Straightening the Pipes Results
Reduced data entry
Reduced the amount of required paperwork
Eliminated steps that provided minimal value
Realigned deadlines to match better with decision points
Provided more timely financial data to Departments
Improved timeliness & quality of communication
Cut approx. 3 weeks off the overall process

22. What internal processes did you go through to begin simplification?
Roundtable Question
What internal processes did you go through to begin simplification?

23. Council Presentation of the City Manager’s Recommended Budget

24. Stop the Parade

25. Stop the Parade
Not necessary to showcase the entire department during the budget presentation
Nor is it necessary to hear every department’s budget
Consistent organizational wide budget message
Reduces the opportunity for political persuasion

26. Focus on Topics, Decision Points & Results
Work to move the focus away from detailed financial data. Focus on the highlights.
Only present those departments or topics with budgetary issues that need feedback and input from Council.
Consider focusing the discussion and presentation on how the budget will further/align with the Council Goals/Strategy Plan, etc.
Council can still request specific presentations based on the information in the preliminary budget overview.

27. Roundtable Question
Do you hold Budget Retreats? How do you receive feedback from stakeholders?
Timing?
Frequency?
Content?
Format?

28. Roundtable Question
How do you inform your Council and incorporate their input in the budget process?

29. In Closing