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Priority-Based Budgeting (PBB)

What is Priority-Based Budgeting (PBB)?

PBB takes a comprehensive approach to align the City’s budget to the City’s strategic plan. PBB aims to identify the cost of all City programs and services and align our budget with the strategic priorities set by the City Council by answering the following questions:

 

Three Critical Questions


What do we do?

What does it cost?

How closely does it align with our strategic priorities?

 

PBB starts with City departments creating an inventory of all their programs, identifying associated revenue and costs associated with those programs, and determining how closely each program aligns with the Council’s priorities. This process will ultimately produce citywide insights about all programs offered and help the City make decisions about how to allocate resources, improve efficiencies, increase revenue, and enhance City programs.

 

 

This Process is Broken Down into 4 Steps

1. Program Inventory – Determine all programs and services we offer.

 

2. Program Costing – Allocate line-item budget expenditures/revenue to programs to identify the true cost of programs.

 

 

3. Program Scoring – Assign scores to programs based on alignment with Council’s Strategic Priorities and basic program attributes.

 

4. Take Action & Apply the Data – Use program insights to optimize our resources for maximum program efficiency.

 

 

Strategic planning process, first identify our priorities for the next 5 years. City council direction. Next, program insights, apply our findings to optimize our resources for program efficiency. Next, budget development, develop a budget based on strategic priorities and program insights.

 

Year 1 Accomplishments

  • 55 team members participated from all City departments
  • PBB webpage, video and email communications distributed
  • 606 City programs identified
  • Costing, scoring and peer review completed for all programs
  • 168 program insights identified:
  • Top Insights included in department budget presentations (high impact/low effort)

 

Year 2 Goals

  1. Greater involvement and engagement with Executive Sponsor team
  2. Improve communication and tie in PBB with strategic plan and budget process
  3. Refine scoring criteria for greater consistency
  4. Help enterprise funds discover the value of PBB
  5. Reduce/eliminate department silos
  6. Utilize PBB for FY 2022-2024 budget development process

 

What does the timeline look like?

The Year 2 PBB process began in August 2021 with a goal to wrap up the process by December 2021when the next year’s budget process will begin

 

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