Welcome!

Innovation City

Background• Like many businesses and organizations, the City is facing financial challenges. While we are on solid financial footing today, we are looking ahead at how best to align City expenses with projected revenues in 2013 and beyond. Our challenge as we develop future budgets is that our costs are starting to outpace revenues at a faster rate than ever before.

• By beginning this analysis now, we have the opportunity to shape the future of our organization proactively with a strategic, creative and team-centric approach.

• Our goal is to adapt our organization in a way that will keep us fiscally viable while allowing us to continue providing top quality products and services to our community.

Innovation City

Structure

• In late fall 2011 at the Mayor’s request I developed a planto help address the City’s financial challenges in an innovative and holistic manner.

• At the heart of the plan is Team Innovation.The team is guided by the Budget Team, whose members are Controller Mike Trexler; Parks and Recreation Director Mick Renneisen; Human Resources Director Daniel Grundmann and me.

• Every City Department Head plays a leadership role.

• Team Innovation has roles available for all City employees.

Innovation City

The Approach

We decided to look at every aspect of how we operate the City. So that we are thorough in our analysis and thoughtful in our decision making, we divided our work into four main categories:

1 - Human Resources Initiatives

2 - Strategic Service Provision & Budgeting

3 - Revenue Generation

4 - Operations & Opportunities

Innovation City

Challenges

• Time/balance/staffing resources

• Variety of perspectives

• Not a lot of muda! Already lean, already very good!

• Commitment to excellence & sustainability

• Communication

• Change is hard!

Innovation City

Strategies & Tactics

• Develop a solid working team and plan of action.

• Introduce a High Deductible plan.

• Implement an Early Retirement and Separation Incentive Program (ERIP/SIP).

• Review departmental operations, with every department identifying areas to save funds and increase efficiency.

• Identify potential new revenue streams.

Innovation City

Outcomes

Due to the efforts of the entire organization to be innovative in how we approach governing, our proposed 2013 budget takes us on a sustainable path. With this budget, we continue to do everything possible to keep providing the services our community has come to expect while maintaining reserves close to the 2012 level.

Almost every department shows flat or even decreased spending in every category except personnel. We've been examining the services we provide and the ways we provide them so that we can make thoughtful and strategic adjustments to the way we run city government.

We will continue to develop those proposals over the coming months.

Innovation CityOutcomes

• More than $1.2 million in savings directly attributable to the Innovation project.

• City’s cash reserve will remain healthy with a General Fund cash balance of $2,515,443 and a Rainy Day Fund balance of $4,637,930 projected at the end of 2013.

• Continued commitment to Alternative Transportation, Sidewalks Program and Social Services.

• Sustainable practices that increase our energy efficiencies and reduce our carbon footprint.

• Projects that will stimulate economic vitality, including the Switchyard, Downtown 12 Acres, Platinum Bicycle Initiative and other significant infrastructure investments.

Innovation City

What’s Next

• Continued analysis of service provision and HR options.

• Identification of additional collaborations.

• Decision making regarding operational practices.

• Continued staffing analysis.

• Continued look revenue opportunities.

• Strategic plan updating.

Thank you!