Council Study Session

MINUTES CITY COUNCIL STUDY SESSION CITY OF MONTEREY Wednesday, September 29, 2010 4:00 - 7:00 p.m. COUNCIL CHAMBER, FEW MEMORIAL HALL MONTEREY, CALIFORNIA Councilmembers Present: Councilmembers Downey, Haferman, Selfridge, Sollecito, Della Sala Absent: None City Staff City Manager, City Attorney, Assistant Director Plans and Public Works, Chief of Present: Planning, Engineering and Environmental Compliance, Community Services Director, Finance Director, Fire Chief, Human Resources Director, Police Chief, Recreation & Community Services Director, Senior Assistant City Clerk CALL TO ORDER Mayor Della Sala called the meeting to order at 4:01 p.m. PUBLIC COMMENTS Mayor Della Sala opened public comment on items not on the agenda and seeing no requests to speak closed public comment. STUDY SESSION 1. Priority Based Budgeting Overview (Finance - 406-01) Action: Report received City Manager Meurer introduced the item, stating priority based budgeting is not a silver bullet, but that priority based budgeting does has immediate value for the City as it faces its five million dollar structural operational shortfall. Finance Director Rhoads stated that the purpose of this meeting is to provide Council with a refresher on this topic and to prepare everyone for upcoming public meetings in October and November, stressing the public and board, committee, and commission members will be involved throughout the process. Director Rhoads introduced Jon Johnson and Chris Fabian from the Center for Priority Based Budgeting, who provided Council with a refresher on this topic. Mr. Johnson stated that priority based budgeting helps local agencies learn how to determine what is supportable in regards to service levels. In example, he stated a City can use this process for determining how many and what type of services are supportable while still remaining relevant to citizens. Mr. Johnson stressed that collecting all the facts from all sources, determining the root cause of problems, and then determining how to adjust expenditures or services is at the heart of priority based budgeting. Mr. Johnson and Mr. Fabian stated that priority based budgeting is analogous to achieving physical wellness. Mr. Johnson noted that it is important to preserve the City's uncertainties fund to be prepared for uncertainties and getting the budget in line with your needs is crucial to achieving and keeping fiscal health. City Council Minutes Wednesday, September 29, 2010 Mr. Johnson stated that each local agency's expected results, like the City of Monterey's value drivers, is the best starting point for the process. Mr. Johnson and Mr. Fabian described each phase and step of the process. They explained prioritization, scoring of results, assignment of values, peer review steps, and concluded with a discussion on how ultimate allocations are based on how things are prioritized and valued. Mr. Johnson stated that some agencies look at priority based budgeting as a return on investment analysis on government tax dollars spending. Mr. Johnson and Mr. Fabian demonstrated a tool they created to make the process a little more interactive, noting the tool is a way to start conversations about what the City could do differently to achieve fiscal health and wellness. They showed how agencies could use the tool to propose changes to the general fund and then see how that impacts department budgets. Mr. Fabian stated the new tool also gives users ways of performing analysis, for example looking at specific attributes or displaying which programs have a state or federal mandate. At 5:55 p.m. Mayor Della Sala called a recess and the reconvened the meeting at 6:05 p.m. The Mayor and Councilmembers asked Mr. Johnson and Mr. Fabian questions related to priority based budgeting, specifically about regionalization, for a copy of the PowerPoint slides, impacts on current contracts, staff salaries, and about the tool developed by Mr. Johnson and Mr. Fabian. ADJOURNMENT There being no further business to come before the City Council, Mayor Della Sala adjourned the meeting at 6:45 p.m. Respectfully Submitted, Approved, Catherine A. Raynor Chuck Della Sala Senior Assistant City Clerk Mayor 2