Attachment A – Financial Processes Overview
A variety of processes lead to the development of the annual budget: the Strategic Plan, Five-Year Financial Plan, Capital Improvement Program, department and community agency request processes, and the program and service review. This attachment highlights how the annual budget has incorporated these different processes.
Strategic Planning Process: Over the past 16 years, the County has engaged in organizational improvement and strategic planning activities. In 1992, the County initiated a Quality Improvement Program (QuIP), which focused on departmental improvement plans, employee training, and customer service initiatives. In 1998, the Board of Supervisors adopted the County’s first official Strategic Plan, which combined County plans, goals, and strategies into one document for clarity and focus.
In September 2005, the Board initiated the development of the County’s FY07 – FY10 Strategic Plan. After reviewing analysis of the 2004 citizen survey results, County data and information about the County’s progress toward current goals and objectives, the Board directed staff to continue its focus on enhancing quality of life, protecting natural resources and managing growth. The Board also directed staff to increase their focus on developing infrastructure and a comprehensive funding strategy to meet the County’s future needs. During the winter and spring of 2006, staff worked closely with the Board to develop specific measurable objectives for the new plan. The FY07 – FY10 Strategic Plan was finalized in July 2006.
Five-Year Financial Plan: The five-year financial forecast was first used during the FY 05/06 budget development process and serves to help the Board make informed decisions about the future impact of its choices. In 2007, the five-year financial plan process was expanded to include a greater focus on Board approval of assumptions that drive the budget, more extensive review of expenditure assumptions and Board approval of a balanced five-year plan. This process takes place in the fall just prior to development of the annual budget.
Capital Improvement Program: The Capital Improvements Program (CIP) for FY 08-12 and the Capital Needs Assessment for FY 13-17 serve as the planning guides for County expenditures on major capital facilities and equipment needs over the next five and ten year periods respectively, and represent a balance between finite resources and an ever increasing number of competing County priorities and needs.
The CIP process is now a two-year planning process that begins with a detailed review of ten-year needs and the development of the five-year capital plan in the first year and a streamlined review of amendments to the existing CIP in the second year.
Department and Community Agency Request Processes: Each year, County departments request funds for existing and proposed new operations. As part of this process, departments submit their mission, goals and performance objectives for the upcoming year. Department requests are based on a variety of factors including the Strategic Plan, prior direction from the Board of Supervisors, workload issues, departmental goals and objectives, Comprehensive Plan guidelines, and impacts from the Capital Improvement Program.
There are two separate processes for reviewing requests for funding from community agencies. The Commission on Children and Families oversees recommendations for Human Service Agency requests. All other agencies are reviewed jointly by staff from the City of Charlottesville and the County of Albemarle.
Program and Service Review: Please see Attachment D – Program and Service Review Summary.
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