COMMITTEE SUBSTITUTE FOR RESOLUTION NO. 220394

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RESOLUTION - Directing the City Manager to implement Priority Based Budgeting to better align resources with community priorities/values, build upon the City’s comprehensive framework that ensures financial resiliency, and increases transparency in the budget process.

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WHEREAS, the Adopted Citywide Business Plan includes in the Finance and Governance goal an objective to ensure the resiliency of City government.  A strategy contained within the objective is to implement an outcomes-based budgeting system; and

WHEREAS, the philosophy of priority-based budgeting is that resources should be allocated according to how effectively a program or service achieves the goals and objectives that are of greatest value to the City, as measured by data and evidence; and

WHEREAS, priority-based budgeting is accepted as a best practice in government budgeting by International City/County Management Association (ICMA) and Government Finance Officers Association (GFOA).  Priority based budgeting is adopted and applied in over 300 municipalities across North America; and

WHEREAS, the principles of priority-based budgeting include:

•                     Prioritizing services that most align with the citywide business plan goals

•                     Evaluate historical spending practices

•                     Spend within means

•                     Understand the costs of doing business

•                     Providing transparency of priorities

•                     Providing transparency of service impacts

•                     Consider the future that each and every program or that the City provides and determine its relevance and alignment with priority results; and

WHEREAS, priority-based budgeting is a collaborative, evidence-based process ranking city programs/services according to:

•                     Alignment to strategic goals and priorities outlined in the citywide business plan (our Values)

•                     Mandate review - Is the program mandated by federal, state, or local regulations?

•                     Demand changes - Is the demand for the service changing?

•                     Population served review - How many residents does the program serve?

•                     Reliance review - Is the service offered by others in the community considering both affordability and accessibility? 

•                     Program revenue review - Does the program revenue support the cost of the service?

•                     Efficiency review - Is the program running in the most efficient way possible;

NOW, THEREFORE:

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

That the City Manager is directed to deliver a plan back to Council within 90 days of the adoption of this resolution to implement priority-based budgeting or a best practice approach to government budgeting.

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