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�J� <br />l�� . <br />Request #or Council Ac�ion <br />Daie: February 9, 20�6 <br />Itern Nurnber: 13. <br />Department Approval Manager Approval Agenda Sectian <br />_ _ ._ , <br />Item Description; <br />Budgeting for �utcvmes <br />I. BACKGROUND <br />On January 25, Rosevill� was a satellite down-link site for a presentation about `Budgeiing for <br />Outcames" (BFQ). T�is rt�ert�o autlines BFO anc� asks the Council whether they wish to pursue <br />BFO for the 2007city budget. <br />II. BUDGETING FOR OUTCOMES <br />In 1993, David Osboarzae co-authored "Reinven�ing Government: How the Entrepreneurial Spirit <br />Is Transforming the Public Sector." That book proposes some innovative, same might say radi- <br />cal, steps for irnproving the operation of lacal, state, and fede�-a1 government. The book became <br />a kind of mod�l for gov�rnment reforn� during the 1990's. <br />In 2004, David Os�orne teamed up wit� St. Paul resident Peter Hutchi�son to author `Budgeting <br />for Qutcomes: Getting the Results We Need in the Age of �'e�-amanent Fiscal Crisis." This book <br />follows-up on some of the reform agenda discussed by Osborne in "Reinventing Gaverntnent." <br />Although tl�is newer baok deals with anany subj ects, t�e �rst section proposes and describes a <br />new budgeting process for gover.camenfi. <br />That new budgeting process, called budgeting far outco�es, r�volves araund four major activi- <br />ties: <br />A. Setting the Price of Government. The price of government is based on the commonly ac- <br />cepted historical cost of governrr�ent. There is a formula by which it is calculated. Basz- <br />ca11y that formula is a ratio where you compare ,on the one hand, tkae total amaunt of <br />�noney paid to government in the form of taxes, fees, assessments, grants, etc., with, on <br />�he ather hand, the az-nount o�persanal income derived from all sources by residents of <br />your community. HistoricaIly, the pric� of govemment for cities is around 6 cents on the <br />dollar. <br />B. Setttin� the GoaIs of Government. Through surveys, comrnunity outreach, and other <br />processes, the governing body decides the top goals they want ta achieve. Osborne and <br />