UW Performance Measurement & Budgeting Project A Cooperative Presentation by UW- Extension and UW-Oshkosh for the Wisconsin City Managers Association Alan

UW Performance UW Performance Measurement & Measurement &

Budgeting ProjectBudgeting Project

UW Performance UW Performance Measurement & Measurement &

Budgeting ProjectBudgeting ProjectA Cooperative Presentation by UW-A Cooperative Presentation by UW-Extension and UW-Oshkosh for the Extension and UW-Oshkosh for the

Wisconsin City Managers Wisconsin City Managers AssociationAssociation

Alan Probst, Senior Lecturer, UW-Extension LGCAlan Probst, Senior Lecturer, UW-Extension LGCCraig Maher, Associate Professor, UW-OshkoshCraig Maher, Associate Professor, UW-Oshkosh

A Cooperative Presentation by UW-A Cooperative Presentation by UW-Extension and UW-Oshkosh for the Extension and UW-Oshkosh for the

Wisconsin City Managers Wisconsin City Managers AssociationAssociation

Alan Probst, Senior Lecturer, UW-Extension LGCAlan Probst, Senior Lecturer, UW-Extension LGCCraig Maher, Associate Professor, UW-OshkoshCraig Maher, Associate Professor, UW-Oshkosh

Why the Project?Why the Project?Why the Project?Why the Project?

Current local government financial situation Current local government financial situation requires better efficiency requires better efficiency

Need for education and training was expressed Need for education and training was expressed to the University of Wisconsinto the University of Wisconsin

Logical program staff:Logical program staff:Craig MaherCraig Maher, UW-O, MPA program and city , UW-O, MPA program and city

council membercouncil memberAlan ProbstAlan Probst, UW-EXT, LGC and former city , UW-EXT, LGC and former city

managermanager

Project Status to DateProject Status to DateProject Status to DateProject Status to Date Introductory PresentationIntroductory Presentation CompleteComplete

Instructional PresentationInstructional Presentation CompleteComplete

Performance Handbook/ManualPerformance Handbook/Manual CompleteComplete

Identify Core IndicatorsIdentify Core Indicators DraftDraft

Training ExercisesTraining Exercises First 1 completeFirst 1 complete

Training for local officialsTraining for local officials OngoingOngoing

Data clearinghouseData clearinghouse Seeking Funding Seeking Funding

Performance BudgetingPerformance BudgetingPerformance BudgetingPerformance Budgeting

Originated in late 1940’sOriginated in late 1940’s

Congress enacted through National Congress enacted through National Security Act of 1949 for newly formed Security Act of 1949 for newly formed Department of DefenseDepartment of Defense

Government Performance and Results Government Performance and Results Act (GPRA)Act (GPRA)

Performance BudgetingPerformance BudgetingPerformance BudgetingPerformance Budgeting

Based on the assumption that presenting Based on the assumption that presenting performance information alongside performance information alongside budget amounts will improve budget budget amounts will improve budget decision-making by focusing funding decision-making by focusing funding choices on program resultschoices on program results

Performance Based BudgetingPerformance Based BudgetingPerformance Based BudgetingPerformance Based Budgeting

Performance based budgeting Performance based budgeting cannotcannot begin begin until a system of until a system of performance measurementperformance measurement has been institutedhas been instituted

A functional performance based budgeting A functional performance based budgeting system cannot be expected to produce the system cannot be expected to produce the long-term desired results in the first year of long-term desired results in the first year of its inceptionits inception

Must build a Performance Based Must build a Performance Based Management SystemManagement System

Management ToolManagement ToolManagement ToolManagement Tool

Performance budgets focus on missions, Performance budgets focus on missions, goals, and objectives to explain why money goals, and objectives to explain why money is being spent and provide a way to allocate is being spent and provide a way to allocate resources to achieve specific resultsresources to achieve specific results

PBB is intended to be a management tool for PBB is intended to be a management tool for program improvement, not a “carrot and program improvement, not a “carrot and stick” methodology used to “punish” stick” methodology used to “punish” departments for not meeting goalsdepartments for not meeting goals

Why is this Important?Why is this Important?Why is this Important?Why is this Important?

Most Federal grants now require outcome Most Federal grants now require outcome evaluations (performance measurement) in their evaluations (performance measurement) in their applicationsapplications

Bond sales require indicators of financial condition Bond sales require indicators of financial condition which are well presented by performance datawhich are well presented by performance data

Local government revenues are becoming Local government revenues are becoming insufficient making effective use of resources insufficient making effective use of resources imperativeimperative

Promotes the logical tie between planning and Promotes the logical tie between planning and budgetingbudgeting

Why is this Important?Why is this Important?Why is this Important?Why is this Important? Both the Government Accounting Standards Board Both the Government Accounting Standards Board

(GASB) and the Government Finance Officers (GASB) and the Government Finance Officers Association (GFOA) are promoting performance Association (GFOA) are promoting performance measurement indicating it may soon become a measurement indicating it may soon become a requirementrequirement

Provides a way to quantify to the citizens how well Provides a way to quantify to the citizens how well their local government is doing compared to their local government is doing compared to previous years and other similar communities; i.e. previous years and other similar communities; i.e. “how much bang they’re getting for their buck”“how much bang they’re getting for their buck”

The current fiscal crisis is expected to worsen; the The current fiscal crisis is expected to worsen; the State of WI is facing a $3b. GF annual shortfallState of WI is facing a $3b. GF annual shortfall

Performance MeasurementPerformance MeasurementPerformance MeasurementPerformance Measurement

The regular systematic collection, The regular systematic collection, analysis, and reporting of data that analysis, and reporting of data that tracks resources used, work produced, tracks resources used, work produced, and whether specific outcomes were and whether specific outcomes were achieved by an organizationachieved by an organization

Note: Measurements are only meaningful to the degree that they Note: Measurements are only meaningful to the degree that they are a basis for strategic and operational decision-makingare a basis for strategic and operational decision-making


Performance Measurement should:Performance Measurement should:

Be based on program goals and objectives that tie to Be based on program goals and objectives that tie to a statement of program mission or purposea statement of program mission or purpose

Measure program outcomesMeasure program outcomes Provide for resource allocation comparisons over Provide for resource allocation comparisons over

timetime Measure efficiency and effectiveness for continuous Measure efficiency and effectiveness for continuous

improvementimprovement Be verifiable, understandable, and timelyBe verifiable, understandable, and timely


Be consistent throughout the strategic plan, Be consistent throughout the strategic plan, budget, and accounting and reporting budget, and accounting and reporting systems over timesystems over time

Be reported internally and externally (Federal Be reported internally and externally (Federal grants do and GASB may soon require it)grants do and GASB may soon require it)

Be monitored and used in managerial Be monitored and used in managerial decision-making processesdecision-making processes

Local ExampleLocal ExampleLocal ExampleLocal Example

Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance Indicators

CITY GOAL: Ensure a safe and peaceful CITY GOAL: Ensure a safe and peaceful communitycommunity

Fire Service:Fire Service: Structural fires per 1,000 populationStructural fires per 1,000 population Response times reduced to or maintained at ___ Response times reduced to or maintained at ___

minutesminutes Percent of 9-1-1 calls answered in 20 seconds Percent of 9-1-1 calls answered in 20 seconds Inspections w/time periodInspections w/time period Citizen satisfaction Citizen satisfaction ISO ratingISO rating Fire/incident scene accountability Fire/incident scene accountability

Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsPolice/Sheriff:Police/Sheriff: Cases or % of cases closed per reporting Cases or % of cases closed per reporting

periodperiod Violent crime per population or time periodViolent crime per population or time period Property crime per population or time periodProperty crime per population or time period Juvenile offenses per population or time Juvenile offenses per population or time

periodperiod Response timesResponse times Perceptions of safety Perceptions of safety Courthouse security (BIG issue for more Courthouse security (BIG issue for more

urban counties)urban counties)

Performance IndicatorsPerformance IndicatorsPerformance IndicatorsPerformance IndicatorsEMS:EMS: Attain/maintain a cardiac survival rate of Attain/maintain a cardiac survival rate of

_____ %._____ %. Attain/maintain an in-city response time of Attain/maintain an in-city response time of

_____ minutes._____ minutes. (in all but most urban areas of the state, EMS (in all but most urban areas of the state, EMS

and Fire are separate organizations)and Fire are separate organizations) Emergency Management:Emergency Management: Achieve/maintain a public alert rate of Achieve/maintain a public alert rate of

____________.____________.


CITY GOAL: Operate and maintain an effective and CITY GOAL: Operate and maintain an effective and safe transportation systemsafe transportation system

Number of miles paved during a reporting periodNumber of miles paved during a reporting period Percent of streets/highways cleared of snow w/24 Percent of streets/highways cleared of snow w/24

hours of snowfallhours of snowfall Percentage of streets/highways with PASER rating Percentage of streets/highways with PASER rating

of 4 or lowerof 4 or lower Percentage of streets reconstructed in reporting Percentage of streets reconstructed in reporting

periodperiod Traffic flow indicatorTraffic flow indicator


CITY GOAL: Improve the quality of life in CITY GOAL: Improve the quality of life in neighborhoodsneighborhoods

Resident level of safety in parksResident level of safety in parks Citizen satisfaction with Parks & RecreationCitizen satisfaction with Parks & Recreation Rates of citizen participation per programRates of citizen participation per program Recycling diversion rateRecycling diversion rate Community cleanlinessCommunity cleanliness Acres of park land maintained (mowed, cleaned, etc.) Acres of park land maintained (mowed, cleaned, etc.) Number of households utilizing library service Number of households utilizing library service Water quality ratingsWater quality ratings


CITY GOAL: Promote economic vitality CITY GOAL: Promote economic vitality and opportunity and opportunity

Perceptions of community as a place to Perceptions of community as a place to live/worklive/work

Unemployment rateUnemployment rate Per Capita IncomePer Capita Income Equalized Property Value per capitaEqualized Property Value per capita Homeownership rateHomeownership rate


CITY GOAL: Efficient city management:CITY GOAL: Efficient city management: Municipal bond ratingMunicipal bond rating Assessment ratioAssessment ratio Building plan/plate reviews completed Building plan/plate reviews completed

(planning dept.)(planning dept.) Building permits issued (planning dept.)Building permits issued (planning dept.) Bills processed on time (finance Bills processed on time (finance

dept./treasurer)dept./treasurer) Public notices published (clerk)Public notices published (clerk) Personnel actions completed (HR or clerk)Personnel actions completed (HR or clerk)

Training ExerciseTraining ExerciseTraining ExerciseTraining ExerciseScenario:Scenario:The City Council of Dog Patch has The City Council of Dog Patch has

complained to the City Administrator complained to the City Administrator that the fire department’s response that the fire department’s response times are too slow, especially for times are too slow, especially for motor vehicle accidents. The City motor vehicle accidents. The City Administrator wants you, the Fire Administrator wants you, the Fire Chief, to begin tracking your Chief, to begin tracking your performance related to response times performance related to response times to:to:

Training ExerciseTraining ExerciseTraining ExerciseTraining Exercise

(A) defend the department’s (A) defend the department’s response performance to the response performance to the council, andcouncil, and

(B) determine what can be done to (B) determine what can be done to improve response times.improve response times.

BenchmarksBenchmarksBenchmarksBenchmarks

Internal:Internal: Average response time for all city public safety Average response time for all city public safety

servicesservices Response time per mile traveledResponse time per mile traveled

External:External: Response times for fire departments in other Response times for fire departments in other

comparable municipalities comparable municipalities 1.1. Bug TussleBug Tussle2.2. Night owlNight owl3.3. Black bogBlack bog4.4. Possum HollowPossum Hollow

Four-Step MethodologyFour-Step MethodologyFour-Step MethodologyFour-Step Methodology

Step 1: Review and Evaluate Existing Step 1: Review and Evaluate Existing Department Mission and Cost Center Department Mission and Cost Center Goals:Goals:

““To provide emergency and non-To provide emergency and non-emergency services to anyone emergency services to anyone requiring assistance in our service requiring assistance in our service area.”area.”


Step 2: Identify a Service Area.Step 2: Identify a Service Area. Fire suppressionFire suppression Fire preventionFire prevention Fire prevention educationFire prevention education ExtricationExtrication Confined space rescueConfined space rescue Disaster responseDisaster response Other rescue as neededOther rescue as needed Other emergency responses not applicable to Other emergency responses not applicable to

other depts.other depts.


Step 3: Service Area ObjectivesStep 3: Service Area Objectives

““Arrival of first fire/emergency apparatus Arrival of first fire/emergency apparatus on scene within seven (7) minutes of on scene within seven (7) minutes of dispatch anywhere within municipal dispatch anywhere within municipal limits.”limits.”


Step 4: Identify indicators that measure Step 4: Identify indicators that measure progress on objectives.progress on objectives.

Time from initial dispatch to report 10-23 on Time from initial dispatch to report 10-23 on station.station.

1.1. During normal workdayDuring normal workday2.2. Night, after darkNight, after dark3.3. Under adverse weather conditionsUnder adverse weather conditions4.4. During unusual eventsDuring unusual events5.5. Other calls requiring response at same timeOther calls requiring response at same time


Step 4: Identify indicators that measure Step 4: Identify indicators that measure progress on objectives. (cont.)progress on objectives. (cont.)

Manning level/firefighter availability at time Manning level/firefighter availability at time of dispatchof dispatch

Equipment status/availability at time of Equipment status/availability at time of dispatchdispatch

Weather conditions at time of dispatchWeather conditions at time of dispatch

MATRIXMATRIXMATRIXMATRIX

Service Area Objective Input Output Efficiency Service Quality Outcome

Fire Suppression

To ensure arrival of first

fire/emergency apparatus on scene within

seven (7) minutes of dispatch anywhere

within municipal

limits

Actual costs equipment

staff/firefighters

# incidents responded

to

avg. cost per

response avg. response time

acceptable response time for ISO and

benchmarks

Response time 7 minutes

1 engine, 1 truck, 6

firefighters, fuel 342 $1,055 8 minutes, 4

seconds

acceptable response time considering

manning and weather

conditions

Supporting DataSupporting DataSupporting DataSupporting Data

Number of total responses during data Number of total responses during data collection period:collection period: 342342

Average response time:Average response time: 8 min 4 sec8 min 4 sec

Number of responses during periods of Number of responses during periods of reduced manning:reduced manning: 184184

(75% manning or lower)(75% manning or lower)


Supporting DataSupporting DataSupporting DataSupporting Data

Number of responses during or within 24 hours Number of responses during or within 24 hours of 3 inch snow or ice event:of 3 inch snow or ice event: 127127


Number of responses w/full manning and no Number of responses w/full manning and no weather event:weather event: 102102


Average response times for all comparable Average response times for all comparable benchmark municipalities benchmark municipalities 8 min 10 sec8 min 10 sec

Explanatory DataExplanatory DataExplanatory DataExplanatory Data

Data collection period was conducted Data collection period was conducted during month of December, 2008 when during month of December, 2008 when the municipality suffered the snowiest the municipality suffered the snowiest December in recorded history and December in recorded history and budget deficits mandated 2/3 of shifts budget deficits mandated 2/3 of shifts to be manned at 75%. Some responses to be manned at 75%. Some responses experienced both snow/ice event and experienced both snow/ice event and reduced manning.reduced manning.

SummarySummarySummarySummary

The department did not reach the goal of 7 The department did not reach the goal of 7 minutes or less for each response time but minutes or less for each response time but met an acceptable level of an average of 8 met an acceptable level of an average of 8 minutes, 4 seconds from dispatch to minutes, 4 seconds from dispatch to reporting 10-23 on station because of reporting 10-23 on station because of unprecedented manning reductions and unprecedented manning reductions and record-breaking winter weather. Under record-breaking winter weather. Under normal conditions the department actually normal conditions the department actually exceeded the set goal by nearly 8 percentage exceeded the set goal by nearly 8 percentage points and one half minute and still exceeds points and one half minute and still exceeds the overall average response time of external the overall average response time of external benchmarks.benchmarks.

ContactsContactsContactsContacts

Alan ProbstAlan ProbstSenior Lecturer & Local Government SpecialistSenior Lecturer & Local Government SpecialistUW-Extension Local Government CenterUW-Extension Local Government [email protected]

Craig MaherCraig MaherAssociate ProfessorAssociate ProfessorUW-Oshkosh MPA ProgramUW-Oshkosh MPA ProgramDirector, Office of Governmental StudiesDirector, Office of Governmental [email protected]

Documents

UW Performance Measurement & Budgeting Project A Cooperative Presentation by UW- Extension and UW-Oshkosh for the Wisconsin City Managers Association Alan