COUNTY OF ALBEMARLE

 

                                                                     EXECUTIVE SUMMARY

 

 

 

AGENDA TITLE:

Long Range Strategic Budgeting

 

 

 

SUBJECT/PROPOSAL/REQUEST:

Proposed Strategic Budgeting Process and Discussion of Requested Strategic Initiatives

 

 

STAFF CONTACT(S):

Mr. Tucker,  Ms. White

 

 

AGENDA DATE:                     ITEM NUMBER:

January 7, 2004

 

ACTION:                                 INFORMATION:   X

 

CONSENT AGENDA:         

     ACTION:                              INFORMATION:

 

ATTACHMENTS:   Yes

 

REVIEWED BY:

 

 

BACKGROUND:

At the Board’s September Strategic Planning retreat, the Board discussed the importance of aligning long-term financial planning with the County’s Strategic Plan and requested that staff come back to the Board with a proposed plan.  At this January 7th work session, the following three components of that plan will be brought forward for the Board’s review and input: 1) a proposed Strategic Budgeting Process; 2) an interim status report on the FY 05 County operations budget currently under development; 3) a review of the FY05 requested Strategic Initiatives from County departments.   Anticipated outcomes from this work session are:

  • an understanding of how the operating and capital budgets will be aligned with the County’s strategic plan under the proposed strategic budgeting process;
  • an understanding of how FY05 anticipated revenues will be allocated to committed costs and strategic initiative priorities;   
  • an opportunity to provide input on the most critical or least critical strategic initiatives;
  • an opportunity to ask questions and request additional information on any of the requested strategic initiatives.

 

 

STRATEGIC PLAN:

4.  Serve the Public Efficiently and Effectively

 

 

DISCUSSION:

The proposed Strategic Budgeting Process that you see mapped on Attachment A attempts to show four separate processes, i.e. the strategic plan, the operating budget, the capital improvement budget and the business plan, and how they are linked to each other at various points or dates throughout the fiscal year calendar.  You will see that the strategic plan begins in September as every 3rd year the Board of Supervisors develops a new strategic plan.  In the intervening years, the September Board Retreat provides an opportunity for the Board to review the plan’s progress and to update it based on new information and data, i.e., “Hot Topics”. Both the operating and the capital improvement budgeting processes remain essentially the same along the annual continuum, the most important change, however, being the addition of a five-year financial forecast.  A financial forecast model is currently under development by our financial advisors, Davenport and Company, and should be ready to use in the FY06 budget process.  This forecast model, which will include projected revenues and expenditures from both the capital and operating budgets, is a critical component of linking long term resource allocation to approved strategic directions. 

 

The Business Plan is the fourth process on the map and the second new critical piece that links the strategic plan to both the operating and capital budgets.  The Business Plan puts wheels under the strategic plan, because as departments begin to analyze their own operations to determine how they can implement the board’s strategic goals, the Business Plan puts forth those projects that will be undertaken in the next fiscal year to address the Board priorities and move toward making the vision a reality.  Departments and community agencies will develop strategic initiatives in response to the Board’s strategic plan priorities and those that can be implemented in the next fiscal year will be incorporated into the Business Plan. These approved strategic initiatives in turn will be incorporated into each department or agency’s annual operating budget in the budget document.   Future business plans will also include measurable outcomes that are to be achieved, as well as strategic initiatives that are already underway. The strategic initiatives that are developed around the Board’s four priority areas will be reviewed by the County Executive’s Office and the Leadership Council and also by the Board at January and February work sessions.  Only strategic initiatives that can be undertaken or have funding in the next fiscal year will be incorporated into the final Business Plan. The annual Business Plan will include both operating and capital funded initiatives.    

 

The Strategic Initiatives (Attachment B & C) have been submitted to the Office of Management and Budget for funding consideration in the FY05 budget and are focused on achieving the Board’s strategic priorities as set out in the County’s strategic plan.  All the initiatives have been reviewed very generally by the Leadership Council, but at this point in the process have not been thoroughly analyzed by either OMB or the County Executive’s Office for critical need, data justification, implementation feasibility, return on investment, funding ability, one-time vs. on-going costs, etc. Also, these initiatives do not include any requests from community agencies, which might also be aligned with the achievement of the Board’s four Strategic Directions. The requested initiatives are arranged on Attachment B first according to the Strategic Directions and Goals they support and second, by the submitting department. The summaries themselves (Attachment C) are arranged in this same order.

 

We recognize that these strategic initiative requests have been summarized ever so briefly and may not include all the information you may want to know or need to know to have an opinion on a specific request.  However, we decided to bring them all forward at this time to give the Board a general idea of the breadth of the requests, as well as to give the Board an opportunity to ask questions and/or request additional information on any of the requested initiatives.  At this point in the strategic budgeting process, we are not asking the Board to set priorities or to determine which strategic initiatives should receive funding or which ones should not receive funding.  What we do want to know from the Board at this first Strategic Budgeting work session is: 1) Are there any strategic initiative requests that stand out to you as critical to the Strategic Plan identified priorities; 2) Are there any strategic initiatives that you feel are not critical to the strategic plan and therefore, would not be a high funding priority; 3) Are there any questions or concerns on any of the requested initiatives that need to be researched or analyzed by OMB prior to any subsequent review by the Board.

 

 

RECOMMENDATION:

At the conclusion of the work session, staff requests Board consensus on the proposed Strategic Budgeting Process and comments and/or questions on the requested Strategic Initiatives. 

 

View Attachment A

View Attachment B

View Attachment C

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