2. 2014 TLG Conference
The Odd Couple – How
Focusing on Priorities Turned a
City and a County into Budget
Innovators
Douglas County, NV
Wheat Ridge, CO

4.  Over 750 square miles
 18 % of Lake Tahoe
shoreline
 Towns:
 Minden, Gardnerville &
Genoa in Carson Valley
 Stateline at Lake Tahoe
 47,000 residents
 $163 million annual
operating budget
 457 full time employees
Location of Douglas
County Nevada
Douglas County
Vision: A Community to Match the Scenery

5. Douglas County
Vision: A Community to Match the Scenery
• Financial Stability
• Public Safety
• Economic Vitality
• Infrastructure
• Natural Environment,
Resources and Cultural
Heritage
• Manage Growth and Change
Strategic
Priorities:

6. Douglas County Structure
 Five Member Board of
Commissioners
 11 Independently Elected
Officials (separate from Board)
• 66% of General fund
• Includes Sheriff, Judges,
Assessor, Clerk-Treasurer,
Recorder, District Attorney,
Constable and Public
Guardian
 Only Six Departments lead by
the County Manager
 Several other departments
operated by separate boards
• Library, 3 towns and Fire
District

7. Wheat Ridge
 Inner ring suburb, west
of Denver
 Pop. 31,000
 9.5 square miles
 $28 million annual
Operation Budget
 227 full-time equivalents
 Approx. 300 part-time
Vision: A Great Place to Live, Work and Play!

8. Wheat Ridge Strategic
Priorities
Economically
Viable
Commercial
Centers
Financially
Sound City
Desirable
Neighborhoods
More Attractive
Wheat Ridge

9. Wheat Ridge Structure
 Council- Manager
 Mayor
 Eight member
Council
 Elected Clerk and
Treasurer
 No dedicated Finance
Department

10. How it started

11. Douglas County Result
Definitions of our Strategic
Priorities
Economic
Vitality
Promotes quality and diverse
employment opportunities and
collaboratively provides and
attracts a skilled, educated
workforce that meets the needs
of community employers
Provides a well-planned, well-
maintained and accessible
transportation network that
supports the growth of the
community
Promotes itself as a safe,
attractive place to live and
work, offering basic services,
housing options and a variety of
activities and amenities that
provide residents with a
desirable quality of life
Markets its attractiveness as a
designation point for tourists
and regional visitors Facilitates business
development through
community partnerships,
efficient “business-friendly”
processes and an environment
that supports and encourages
economic growth
Encourages and supports the
recruitment, retention and
growth of a well-balanced mix
of businesses that stimulates
the regional economy and
focuses on a well-planned,
unified regional vision
Preservation of Natural
Environment, Resources
and Cultural Heritage
Promotes a variety of opportunities,
through collaborative partnerships,
that focus on the arts, cultural
enrichment, education and events
that promote the community's
heritage
Provides for the preservation,
conservation and efficient use of its
water supply and other natural
resources, encourages waste reduction
through recycling and reuse and
partners with community stakeholders
to ensure the adoption of a
unified, regional
approach
Restores, revitalizes and
redevelops it historical
resources to preserve and
protect its heritage for current
and future generations to use
and appreciate
Provides the community with
accessible and well-maintained
parks, trails and facilities that
offer a variety of recreational
opportunities
Partners with the community to
ensure the protection and
preservation of its open space,
agricultural and public lands and
to appropriately promote its use

12. Douglas County Result
Definitions of our Strategic
Priorities
Reliable,
Well-maintained
Infrastructure
Mitigates against the risk of flooding
by maintaining a well-designed
Stormwater management system and
planning for responsible growth
Develops and provides quality parks,
facilities and public spaces that are
clean, well-maintained and sufficiently
utilized to meet the needs of the
community
Effectively provides a safe,
multi-modal transportation
system that eases congestion,
improves traffic flow and
enhances mobility Ensures access to a reliable utility
infrastructure that delivers safe,
clean water, manages sewage
treatment, and provides quality,
cost-effective services that meet
the needs of the community
Designs, constructs, repairs and
improves a system of connected,
reliable and well-maintained
streets, sidewalks, trails and bike
paths
Safe Community
Fosters a feeling of personal safety
through a visible, proactive public
safety presence focused on prevention
and intervention activities and
through the engagement, involvement
and utilization of the community
as partners
Provides for the physical and
environmental health
of the community
Portrays and invests in a visibly
thriving community that is safe,
clean, attractive and provides
for the well-being of its
residents, businesses and
visitors Provides a safe public
infrastructure network that is
well-maintained, accessible and
enhances safe traffic flow and
mobility
Protects the community by
preventing crime, enforcing the
law, administering justice and
promptly responding to
emergencies and calls for service

13. Douglas County Result
Definitions of our Strategic
Priorities
Managed
Growth and
Development
Proactively plans for the
County's growth by preparing
and following an integrated,
comprehensive, future-focused
master plan that provides for
quality, sufficiently regulated
development and land use that
is consistent with community
standards
Plans for an adequate, accessible
transportation network that connects
the community through system of
streets, bike paths and walking trails
Stimulates business growth to
create a more vibrant,
revitalized community that
offers a sustainable, healthy
and enjoyable quality of life
Assesses and mitigates the impact
of growth against the desire to
preserve and protect its open
spaces and natural resources

14. Result Definitions
Economic
Vitality
Cultivates and encourages a
safe, desirable , attractive and
livable community with diverse
neighborhoods, quality housing
choices and regionally
accessible mobility options
Facilitates business development
and growth through appropriate
incentives, shared resources,
community partnerships and
"business-friendly", efficient
processes
Stimulates economic growth by
encouraging investment in well-
planned , sustainable development,
redevelopment and community
revitalization supported by
sufficient city services and
infrastructure Preserves its long-term financial
well-being by seeking new and
diversified revenue streams that
help fund its priorities
Recruits, retains and supports
a balanced mix of sustainable
businesses that enhance and
diversify the City's economy,
create jobs and provide
residents with services that
meet their day-to-day needs
Desirable, Diverse
and Connected
Neighborhoods
Plans, builds and maintains quality
infrastructure that safely connects the
community, enhances its livability and
is both pedestrian and cyclist friendly
Encourages and promotes
neighborhood development and
revitalization that is well-planned,
properly regulated and capitalizes on
its regional location
Collaboratively encourages and
provides community events,
neighborhood gatherings, quality
educational opportunities,
leisure-time activities, basic
services and amenities that
support and connect the
community
Promotes, supports and sustains well-
maintained, safe, clean and visually
appealing neighborhoods, commercial
areas and public spaces
Fosters a welcoming, inclusive
environment that instills community
pride and creates neighborhood
identity through citizen involvement,
engagement, participation and two-
way interaction
Supports the availability of a variety of
quality and attractive housing choices
that meet the needs of the community

15. Healthy, Attractive
and Well-maintained
Community
Promotes healthy, active
lifestyles through a variety of
diverse recreational and leisure
time activities that help enrich
and connect a multi-
generational community
Actively develops, renews,
regulates and maintains a well-
planned, orderly, visually
appealing and welcoming
environment for residents,
businesses and visitors
Continually invests in its streets,
sidewalks, right-of-ways, storm
drainage and other public
infrastructure to ensure it is
clean, well-kept and
adequately enhanced
Preserves, maintains and
enhances its parks, open space,
green space and trails systems,
making them easily accessible Cultivates a clean, healthy and
safe environment that provides
for the health, physical well-
being and basic needs of a
diverse community
Partners with the community to
support the arts, enhance
cultural enrichment, advance
historic preservation and
provide life-long learning
opportunities
Result Definitions
Effective
Transportation and
Mobility Options
Plans, builds and maintains a
transportation network that
eases congestion, improves
traffic flow, facilitates regional
commuting and enhances
accessibility
Promotes and supports a
variety of accessible and
convenient regional public
transit options that
enhance the livability of the
community
Provides and maintains
accessible, safe and well-
planned mobility alternatives
for cyclists and pedestrians
that encourage a walkable and
connected community
Provides a system of safe,
clean, reliable and well-
maintained streets,
sidewalks, bridges and
stormwater infrastructure
Good Governance
Protects, manages and
optimizes its financial, human,
physical and technology
resources
Attracts, motivates and
develops a high-quality,
engaged and productive
workforce
Advances City interests and
secures resources through
regionalism and
partnerships
Delivers responsive and
courteous service to its internal
and external customers, while
ensuring timely and effective
two-way communication
Supports decision-
making with timely and
accurate short-term and
long-range analysis
Enables and enhances openness
and transparency by ensuring
accountability, honesty,
efficiency, best practices and
innovation in all operations
Provides assurance of
regulatory and policy
compliance to minimize
and mitigate risk

16. Budget
Challenge
Exercise

17. Wheat Ridge‟s
Story

18. Why PBB?
 Financial Check-up
 City Council Direction
 Long-Term Fiscal
Sustainability
 Communication Tool

19. Fiscal Health

20. Wheat Ridge Process
 Council Goal, Core Services
 Led by Assistant to the City Manager
 Supported by CM, Executive
Management Team and Council
 Engaged 45 staff members from all
City departments

21. Wheat Ridge PBB Process
 Determined Results
 Defined Results
 Identified Programs and
Services
 Scored Programs
 Prioritized

22. How are we doing?
$13,073,558
$5,645,502
$6,204,127
$3,336,891
$- $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000
1
2
3
4
Wheat Ridge Spending by quartile

23. What does the Community Think?
Safe Community
44%
Economic Vitality
20%
Desirable, Diverse
and Connected
Neighborhoods
13%
Healthy, Attractive
and Well-
Maintained
Community
18%
Effective
Transportation
and Mobility
Options
5%
Community Priority Results

24. Douglas County‟s
Story

25. Douglas County‟s Challenge
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Airport maintenance Customer Relations Property Management Project Management Promotions and
Marketing
Core Airport Services
Percent of Total
Cumulative Percent
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
General Fund
Expenses vs. Revenues
as of March 2012
Revenues Expenditures
Projected Ongoing
Structural Budget Deficits
Great Recession Budget Deficits
Ongoing $3 million
annual structural
budget deficit in the
General Fund
Used short-term
solutions to attempt to
fix the problem:
• Pareto Charts
• Across the board cuts
• Reserves
• Zero Based Budgeting

26. Douglas County‟s Solution
 Received unanimous Board support to
explore Priority Based Budgeting
 “Three-Legged Stool”
Concept was Key
◦ Policy Makers
◦ Internal Stakeholders
◦ Community
All three groups had to support the change to
make it successful

27. Douglas County‟s Path
 First review of PBB model – refinement needed
◦ Payroll‟s initial ranking in Quartile 4
 Used quality control process to build trust:
◦ Individual meetings with all 30 departments
◦ Showed how PBB tool could be used to effectively manage
their department
27
Internal Stakeholders

28.  PBB drove strategic decisions:
◦ Kept Board focused on high level
priorities vs. “in the weeds”
◦ Focused on specific programs vs. all
700 programs
◦ Reallocated resources within
departments:
 New Sheriff patrols, Prosecutor and Road
Funding
 Departmental Reorganizations
 Continued expansion of regional
partnerships
 Eliminated Home Occupation Permits 28
Departments
identified
programs to
eliminate
The Board
reviewed
Quartile
4, but did not
eliminate
programs
Douglas County‟s Path
Policy Makers

29. Douglas County‟s Path
Community
Engaged
citizens
with
Douglas
County
Budget
Challeng
e

30. Infrastructure
25%
Safe Community
20%
Natural Environment,
Resources and
Cultural Heritage
17%
Economic Vitality
16%
Managed
Growth and
Development
9%
Financial Stability
13%
Douglas County
Budget Challenge
 Results of Budget
Challenge:
 Built public trust by giving a voice to all citizens
including staff and those who do not regularly
attend Board meetings
 Gave the County a broader view of what the
community thinks is most important and a basis
for comparison to how we currently invest our
resources
30
Infrastructure
12%
Safe Community
36%
Natural Environment,
Resources and
Cultural Hertiage
8%
Economic Vitality
24%
Managed
Growth and
Development
9%
Financial Stability
11%
Douglas County
Current Investments
Douglas County‟s Results
Citizens
wanted more
investment in
Infrastructure
and Natural
Environment/
Cultural
Heritage

31. Budget Challenge results were summarized by master
plan areas within the County:
Minden/Gardnerville
GardnervilleRanchos
JohnsonLane
Ruhenstroth
IndianHills/JacksValleyEastValley
Foothill
Genoa
TahoeBasin
Pinenut
OutsideDouglasCounty
# of Participants 17 14 8 5 4 3 3 3 2 1 4
Infrastructure 119$ 125$ 139$ 120$ 96$ 59$ 132$ 164$ 123$ 149$ 127$
Safe Community 104 85 110 114 121 44 65 144 51 150 55
Preservation of Natural Resources 110 77 56 57 77 121 90 47 168 50 104
Economic Vitality 60 103 92 91 79 84 63 73 48 88 84
Managed Growth and Development 41 48 55 59 28 82 79 29 60 38 65
Financial Stability (Governance) 66 62 48 59 99 110 71 43 50 25 65
1st Priority
2nd Priority
3rd Priority
4th Priority
5th Priority
6th Priority
Douglas County‟s Path
Infrastructure ranked highest almost across the board

32. Reliable,
Well-maintained
Infrastructure
Mitigates against the risk of flooding
by maintaining a well-designed
Stormwater management system and
planning for responsible growth
Develops and provides quality parks,
facilities and public spaces that are
clean, well-maintained and sufficiently
utilized to meet the needs of the
community
Effectively provides a safe,
multi-modal transportation
system that eases congestion,
improves traffic flow and
enhances mobility Ensures access to a reliable utility
infrastructure that delivers safe,
clean water, manages sewage
treatment, and provides quality,
cost-effective services that meet
the needs of the community
Designs, constructs, repairs and
improves a system of connected,
reliable and well-maintained
streets, sidewalks, trails and bike
paths
27.96%
12.08%
21.55%
11.23%
19.21%
Budget Challenge
participants allocated
resources to sub-
results within the
priorities – Well
Maintained Streets and
Trails ranked highest
Douglas County‟s Path

33. Budget Challenge Results, 2012 vs. 2013
Infrastructure
25%
Safe Community
22%
Natural
Environment,
Resourcesand
Cultural Hertiage
17%
Economic Vitality
14%
Managed
Growthand
Development
9%
Financial Stability
13%
Budget Challenge
2013
Infrastructure
24%
SafeCommunity
20%
NaturalEnvironment,
Resources and Cultural
Hertiage
17%
Economic Vitality
16%
Managed
Growth and
Development
10%
Financial Stability
13%
Budget Challenge
2012
Responses appear almost identical to last year,
yet 63% of people participating were new!
Douglas County‟s Path

34. Budget Challenge Exercise Results
Citizen Comments
from Douglas County‟s
Budget Challenge:
• It took a couple of
tries to get my
budget balanced, I
liked it
• It‟s refreshing to
actually know where
your money is going
and get a chance to
show others what
you think is more
valuable
• My voice is heard
when I don‟t have
time to attend City

35. Budget Challenge
Infrastructure
25%
Safe Community
22%
Natural
Environment,
Resourcesand
Cultural Hertiage
17%
Economic Vitality
14%
Managed
Growthand
Development
9%
Financial Stability
13%
Budget Challenge
2013
Douglas County
Results
Wheat Ridge
Results

36. Successes and
Lessons Learned

37. Douglas County‟s Results
37
 1st County to implement
Priority Based Budgeting
nationwide
 Investing in Priorities:
◦ $2 million in existing funding to
roads (290% increase within 2
years)
◦ New Community and Senior
Center
◦ Department Reorganizations
◦ Continuous Improvement
 2014 Nevada Taxpayers
Association Good
Government Award

38. Douglas County‟s Results
 2013 - Moody‟s bond rating of
„Aa2‟
◦ Third highest rating, “very strong”
◦ Achieved structural balance
◦ Achieved sustainable long-term results
 2014 - Standard and Poor‟s
upgraded bond rating from „A+‟ to
„AA‟
◦ Third highest rating, “very strong”
◦ First upgrade in 10 years and highest
underlying rating ever
◦ Very strong management conditions
◦ Very strong financial practices that are
well embedded and likely sustainable
◦ Stable outlook
AAA Highest Quality
AA +
AA
AA -
A +
A
A -
BBB
B
CCC
C
DDD
D Lowest Quality
Douglas County Bond Rating History
Standard & Poor's
1995
1998
2002
2004
2010
2012
2013
2014
1995
1998
2002
2004
2010
2012
2013
2014

39. Douglas County -Lessons
Learned
 Build Internal Support
 Engage Citizens
 Long-Range organizational change to
focus on priorities and values
 Ensure a Financially Sustainable
Future by Weaving PBB into:
◦ Board/Council strategic budget decisions
◦ Department evaluations/reorganizations
◦ Finance staff analysis of programs
39

40. PBB Successes

41. Lessons Learned
 Be prepared
 PBB Champions
 Have a pulse on organizational
capacity
 Changing Perceptions
 Keep at it – this is an evolutionary
process

42. Q & A