ACHIEVING FISCAL HEALTH

Incorporate Economic
Analysis and Long-term “Spend Within
Planning into Decision- Our Means”
Making

Fiscal
Health
Transparent About
the “True Cost of Establish and
Doing Business” Maintain Reserves
Understand
Variances
(Budget vs. Actual)

Town of Christiansburg, Virginia

Priority-Based Budgeting

Presentation:
Overview of Process and Demonstration of
Resource Allocation Tool ACHIEVING LONG-TERM FISCAL WELLNESS

Center for Support Resource

Allocation Decision Achieve

Priority Based Budgeting

Making with Prioritization Fiscal Health
of Programs

Fiscal
Jon Johnson and Value Programs
Based on Evidence
Wellness
Identify, Define and
Value the Results
Chris Fabian of their Influence
on Results
Identify Programs
of Government

Center for Priority Based Budgeting and Services

Leading Communities to Fiscal Health and Wellness April 2011 1

 Steps to Successful Prioritization
 1.) Determine Results
 Accurate prioritization of programs, reflecting the Town’s stated objectives,
depends on the comprehensive identification of the Results we are in
business to achieve
 2.) Clarify Result Definitions
 Precision in prioritization results from the articulation of the cause and
effect relationship between a program and a Result
 With clearly defined Result Maps, detailing the factors that influence the
Results we are in business to achieve, we can seek to minimize subjectivity
in the process of linking programs with Results
 3.) Identify Programs and Services
 Differentiating programs and services we offer, as opposed to comparing
the departments who provide those services allows for better Prioritization
 4.) Value Programs Based on Results
 With the right Results, and with clear definitions of those Results, we can
more accurately place a value on a program relative to its influence on
achieving Results
 5.) Allocate Resources Based on Priorities
 Using “Resource Allocation Tool”
Center for Priority Based Budgeting
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Leading Communities to Fiscal Health and Wellness
 Step 1: Determine Results
*Inspired from Vision 2020  Everyone’s Hometown, and
Home to Well-Informed and
Engaged Citizens
 An Economically Sound Retail,
Commerce and Tourist
Destination
 Recreational, Cultural and
Entertainment Mecca
 A Green, Well-Planned
Community
 Clean, Healthy, Safe Place to Live
Center for Priority Based Budgeting  Interconnected Community 3
Leading Communities to Fiscal Health and Wellness
 Step 2: Clarify Result Definitions
(Result Maps)
Town of Christiansburg’s
Results

 Everyone’s Hometown, and Home

to Well-Informed and Engaged
Citizens

 An Economically Sound Retail,

Commerce and Tourist Destination

 Recreational, Cultural and

Entertainment Mecca

 A Green, Well-Planned Community

 Clean, Healthy, Safe Place to Live

 Interconnected Community
Center for Priority Based Budgeting
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Leading Communities to Fiscal Health and Wellness
 ENSURES THAT RESIDENTS ARE
WELL-INFORMED and EDUCATED
OFFERS A REVITALIZED, ATTRACTIVE, ABOUT ISSUES THAT AFFECT THEIR
QUAINT DOWNTOWN WITH A VARIETY DAILY LIVES THROUGH A VARIETY
OF COMMUNITY ACTIVITIES and EVENTS OF COMMUNICATION
ALTERNATIVES

EVERYONE'S HOMETOWN
with WELL-INFORMED and
ENGAGED CITIZENS
DEVELOPS and ENCOURAGES
MAINTAINS A SAFE, VISUALLY
COMMUNITY INVOLVEMENT,
APPEALING and HEALTHY
PARTICIPATION, VOLUNTEERISM and
COMMUNITY THAT BLENDS
PRIDE WHILE FOSTERING A CLIMATE
HISTORIC SMALL TOWN LIVING
OF MUTUAL OPENNESS,
WITH HOME-TOWN CHARM
RESPONSIVENESS, TRUST
and RESPECT
CREATES A PROGRESSIVE, WELCOMING
and WELL-PLANNED COMMUNITY IN
WHICH TO LIVE, WORK and PLAY

Center for Priority Based Budgeting

Leading Communities to Fiscal Health and Wellness
Center for Priority Based Budgeting
Leading Communities to Fiscal Health and Wellness
Center for Priority Based Budgeting
Leading Communities to Fiscal Health and Wellness
Center for Priority Based Budgeting
Leading Communities to Fiscal Health and Wellness
 PARTNERS WITH THE
CAPITALIZES ON ITS COMMUNITY TO PROMOTE
RECREATIONAL AMENITIES TO and ENCOURAGE
DRAW VISITORS and GAIN ENTERTAINMENT and
REGIONAL and NATIONAL SIGNATURE EVENTS THAT
EXPOSURE STIMULATE THE COMMUNITY
and THE REGION
RECREATIONAL,
CULTURAL and
ENTERTAINMENT
MECCA
ADVANCES CULTURAL and PROMOTES A HEALTHY, ACTIVE
HISTORIC ENRICHMENT and LIFESTYLE THROUGH
SUPPORTS THE ARTS RECREATIONAL and LEISURE
TIME OPPORTUNITIES
DEVELOPS A HIGH QUALITY,
WELL-MAINTAINED SYSTEM OF
PARKS, TRAILS, OPEN SPACE and
RECREATIONAL FACILITIES

Center for Priority Based Budgeting

Leading Communities to Fiscal Health and Wellness
 ,

Center for Priority Based Budgeting

Leading Communities to Fiscal Health and Wellness
Center for Priority Based Budgeting
Leading Communities to Fiscal Health and Wellness
 Citizen’s Engaged in Results
Validation Exercise
Weighting
Factors

Sources of Survey Results

Result
Employee- Civic-Community Weighting
Town's Results Utility Bill Mail Drop Box Family Organizations TOTAL SPENT Factor

CLEAN HEALTHY SAFE PLACE TO LIVE $ 25,434 $ 3,903 $ 1,106 $ 8,646 $ 730 $ 39,818 3.79
EVERYONES HOMETOWN $ 7,511 $ 1,110 $ 365 $ 1,199 $ 313 $ 10,498 1.00

GREEN WELL PLANNED COMMUNITY $ 12,058 $ 1,764 $ 604 $ 1,565 $ 268 $ 16,258 1.55
INTER-CONNECTED COMMUNITY $ 8,152 $ 1,275 $ 242 $ 1,240 $ 245 $ 11,154 1.06
RECREATIONAL, CULTURAL
ENTERTAINMENT MECA $ 8,700 $ 1,229 $ 292 $ 2,233 $ 243 $ 12,697 1.21
RETAIL COMMERCE AND TOURIST $ 8,749 $ 1,343 $ 292 $ 2,397 $ 300 $ 13,081 1.25
TOTAL $ 72,954 $ 12,020 $ 3,000 $ 17,330 $ 2,100 $ 107,404

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
Step 3: Identify Programs and Services
DEPARTMENT
PROVIDING DIVISION PROGRAM NAME ADDITIONAL NOTES FTE
PROGRAM

Coordinate with Economic Development

Administration interact with varying levels of economic development entities 0.05
agencies

Administration Downtown enhancement project Coordinate & monitor projects from planning and financing to completion 0.05

Administration Subdivision & Site Plan review review subdivision plats, review and sign site development plans 0.05

Energy Efficiency & Conservation of Town

Administration Participate in the Energy Workgroup 0.05
Operations

Administration Intergovernmental Relations attend various meeting pertaining to government cooperation 0.05

 Departments develop their own program inventories

 When defining programs, be clear on the objectives of what inventory will
be used for
 Not too big, not too small, just right!
 Measure relative size based on costs, people associated with program
 Departments and Divisions = too big
 Tasks = too small
Center for Priority Based Budgeting
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Leading Communities to Fiscal Health and Wellness
 Step 4: Score Programs
Programs Scored Relative to Every Result
and Basic Program Attribute

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
 Peer Review (Quality Control) Process

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
 Defining Quartile Groupings
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00
1
4
7
10
13
16
19 Quartile 4:
22 63 Programs
25
28
Quartile 1:
64 Programs
31
34
Quartile 1
37
Quartile 2
40
Quartile 3
43
46 Quartile 4

49
52
55
58
61
Key:
64
67 Quartile 2: Programs are grouped into
70 72 Programs Quartiles (not ranked, one
73
Quartile 3:
versus the other)
76
79 83 Programs
Center
82 for Priority Based Budgeting
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Leading Communities to Fiscal Health and Wellness
Step 5: Allocate Resources Based on Prioritization
Priority Based Budgeting: Spending Array Perspectives
(Quartile 1: Highest Rated Programs;
Quartile 4: Lowest Rated Programs)

1 $12,526,619
Quartile Ranking

2 $6,698,509

3 $4,433,124

4 $2,786,123

$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
 Resource Allocation Tool

Applying Prioritization to
Frame A New Conversation

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
 [Live Demonstration of the
Resource Allocation Tool]

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness
Center for Priority Based Budgeting
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Leading Communities to Fiscal Health and Wellness
 Thank You !
Contact Information:

Center for Priority Based Budgeting

Denver, Colorado

Jon Johnson, Senior Manager Chris Fabian, Senior Manager

303-756-9090, ext. 326 303-756-9090, ext. 325

303-909-9052 (cell) 303-520-1356 (cell)
jjohnson@pbbcenter.org cfabian@pbbcenter.org

www.pbbcenter.org

Center for Priority Based Budgeting

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Leading Communities to Fiscal Health and Wellness