Hear the money talk
Often, the budget process can be divisive for local governments as they struggle to meet increased requests for service with fewer dollars in revenue. But, by starting the budget preparation cycle with a one- or two-day retreat, cities and counties can unify department heads and elected officials, and help everyone understand their individual and collective goals.
Each department head has a unique view of the local government and his or her part in it. Budget retreats, a time of seclusion for local government officials that takes them away from their daily routines to focus on the budget, can help managers learn more about their department’s role in the agency, as well as the functions of others. With better understanding, department heads can more easily identify common budget goals.
The Lexington-Fayette County, Ky., Urban County Government has held one- and two-day budget retreats for the last four years. The first retreat held in 2004 focused on the management team members who were making budget recommendations and which services their operations provided. The next three retreats built on that foundation, covering issues such as changing service priorities and limited revenue sources. Each retreat produced a final report of recommended budget priorities for the mayor to consider.
Any local government can organize a successful budget retreat. To begin, organizers should consider the following:
Gain support and participation from the highest local governmental officials. If the chief administrative officer, city manager or mayor is not the champion of the event, present a case for success and gain the total buy-in of that leader. The top official may not put the budget retreat details together but might have the authority to make the event happen and to make the activity a very high priority.
Detail — in advance — any expectations for the retreat. Ask and answer the following questions: Will an agency receive solid recommendations for budget items or general identification of ongoing goals? Or, will the retreat be a team-building event that gives an overview of the budget process?
Find a location away from government offices. Facilities, such as college classrooms and meeting spaces, should be large enough for the group and support smaller meetings for members to work on specific items. Some governments must meet within their boundaries and should be aware of local regulations.
Set the day’s agenda. Based on the expectations set for the retreat, a specific agenda should be established to keep the group on task and make sure goals are met.
Consider hiring a facilitator. Using someone outside of the government to facilitate allows each person to participate in the discussions and provide recommendations.
Document the discussion and conclusions. The ability to review past discussions supports the recommendations and can offer a focus for the next year’s retreat. Report the results to each department, especially how any suggestions are reflected in the upcoming budget.
Budget retreats allow time for department heads to hear each other’s needs, creating trust and cooperation during competition for fewer dollars each year. A small investment of time can start the budget process off on the correct footing.
The author is budgeting director for Lexington-Fayette County, Ky.