Using a mathematical model developed by consultants with the Center for Priority-based budgeting, the priorities given to specific City programs were considered by executives and the City Council during budget deliberations in the context of this $500 exercise. The results helped inform operating decisions about service reductions as the budget took shape in the spring. The Monterey City Council adopted a balanced 2011-2012 budget and closed a $5 million gap between expenses and revenues with public support and a more informed citizenry.
The success of the program encouraged the City to continue its commitment to priority-based budgeting. During the current fiscal year, the program focuses internally as departments analyze their programs, staffing and costs. Next year, the City will once again reach out to its citizens for feedback through a comprehensive community survey. Ultimately, the City hopes its new approach to budgeting will monitor the performance of individual programs; help set fees more accurately, and assist in decision-making about where to invest and / or withdraw City resources.
Priority-Based Budgeting
The City of Monterey benefits from its tourism-based economy. Transient Occupancy Tax and Sales Tax provide 36% of the General Fund Budget. When tourism lagged during the recent economic downturn, the City took an innovative approach to developing its budget.
Demands for service expanded at a time when resources were declining. So the City decided to check in with its citizens and ask them to help develop priorities. This priority-based approach to budgeting incorporated input gathered from citizens at 16 public meetings and on city’s website. Hundreds of people participated in the process by allocating a hypothetical $500 towards a series of strategic goals previously established by the City Council. Using a mathematical model developed by consultants with the Center for Priority-based budgeting, the priorities given to specific City programs were considered by executives and the City Council during budget deliberations in the context of this $500 exercise. The results helped inform operating decisions about service reductions as the budget took shape in the spring. The Monterey City Council adopted a balanced 2011-2012 budget and closed a $5 million gap between expenses and revenues with public support and a more informed citizenry.
The success of the program encouraged the City to continue its commitment to priority-based budgeting. During the current fiscal year, the program focuses internally as departments analyze their programs, staffing and costs. Next year, the City will once again reach out to its citizens for feedback through a comprehensive community survey. Ultimately, the City hopes its new approach to budgeting will monitor the performance of individual programs; help set fees more accurately, and assist in decision-making about where to invest and / or withdraw City resources.
