Others present: City Manager Greg Clifton; City Attorney Sterling Solomon.

Mr. Clifton provided opening remarks and introduced Jen Reichelt with the Novak Consultant Group who facilitated the meeting.
 
The Council and audience provided a quick introduction of themselves. Mr. Clifton began a PowerPoint presentation that covered the following:
 
OPENING THOUGHTS
REACTIVE DECISION PROCESS
PROACTIVE DECISION PROCESS
THE DICHOTOMY
THE ACCEPTED MODEL
THE ACTUAL MODEL
 
Deputy City Manager Shane Dille continued the presentation.
 
HIGHER PERFORMING GOVERNANCE
HIGHER PERFORMING GOVERNMENT – THE JOURNEY
THE ROAD TO HIGH PERFORMING GOVERNMENT
ACTION 1
ACTION 2
ACTION 3
ACTION 4
ACTION 5
 
Management Analyst Sarah Langley continued the presentation.
 
ACTION 2
WHAT DO WE DO?
STEP 1 – PROGRAM INVENTORY
WHAT DOES IT COST?
STEP 2 – PROGRAM COSTING
WHY ARE WE IN BUSINESS?
STEP 3 – PROGRAM SCORING
HOW DO WE VIEW PBB DATA?
STEP 4 – PRESENTING PBB
WHAT TO DO WITH PBB DATA?
STEP 5 – ANALYZING PROGRAMS
 
Management Services Director Rick Tadder continued the presentation.
 
TODAY’S PURPOSE
PREPARATION FOR STEP 3 OF PRIORITY BASED BUDGETING
 
Ms. Reichelt asked each Councilmember to articulate what they hoped to get out of the retreat.
 
Councilmember McCarthy stated that he would like to have a tool that makes the budgeting process more efficient by setting priorities for the budget that balance the needs of the entire organization.
 
Councilmember Odegaard stated that he is hoping that the process will lead to greater transparency and accountability for the budget.
 
Councilmember Aslan stated that he is excited about the tools being presented to help dig into programs and operations. He would like to see a process and tool that can withstand the changing of council and staff as time moves on. Something that will provide long term consistency.
 
Vice Mayor Shimoni expressed excitement about the process and hopes that this will put the city on a long track of budgeting success. He wants to hear from Council and staff to make sure needs are met and goals are set as a collective group, so everyone is on the same page.
 
Councilmember Whelan also expressed excitement about the process. The process of base budgeting had never appealed to her and she is eager to see the change in the culture of longevity, transparency, and stability that PBB can offer.
 
Councilmember Salas stated that this is the first step in defining the impacts of community process and aligning resources in terms of time, talent, and money with the goals, values, and priorities of the city.
 
Mayor Evans stated that the budget is so large and the process can be very overwhelming. There is often a desire to go through it line by line which is not possible. She is interested in better defining the reality, limitations, and resources available within each year’s budget. She wants to see more public participation brought into the process in a way that incorporates more than just a select few.
 
Ms. Reichelt led staff and Council through an exercise to identify what they want Flagstaff to be now and in the future. The following items were discussed.
 
Safety

• Safe community
• Overall sense of safety
• Functional court facility
• Access to justice
• Use of diversion programs

Community Engagement

• Several generations of families here
• Friendly and welcoming community
• Neighborhood relations
• Community better understands their role
• Better utilize support through internships and volunteers
• Small town feel even as population grows
• Community feels represented by leadership
• Good synergy and trust between elected and staff
• Sense of community and charity
• Good place to raise a family
• Fun place to live
• NAU student sub-committee on the council

Social Equity and Inclusion

• Strong, inclusive, and diverse community
• Social Equity
• People are open minded and caring
• Front porch neighborhoods
• Friendly and outgoing

Planning and Development

• Long term planning
• Purposeful planning
• Well developed and planned community
• Land water recreation
• Strategy on smart growth
• Better understanding between development and community
• Community engagement in development

Financial

• Decrease drain on general fund
• Pay down of pension fund
• Financial stability

Infrastructure

• Cutting edge building standards
• Walkable shopping
• Traffic congestion trends downward
• Transportation infrastructure
• Streamlined transportation system friendly to all modes
• More public transportation
• Overall connectivity

Living Wage/Affordable Housing

• Address housing shortage
• Cost of living and housing is reasonable
• Attainable housing that is affordable
• Affordable living community
• Living wage employment

Water and Environmental

• Dark skies protection
• Southside out of floodplain
• Proactively addressing climate change
• Completion of the RDF
• Well-funded water and wastewater utility
• Forest health and restoration
• Environmentally minded
• Forefront of environmental sustainability

Organizational Elements

• Money available to create a competitive compensation package
• Continued investment in our workforce
• Improve IT security
• Appropriate staffing levels
• Diverse workforce

Economic Development

• Thriving economy
• High tech and high wage opportunities
• Robust economy
• Reduce unemployment and underemployment
• Diverse array of restaurants…
• Do not bash tourism
• Development of long-term financial plan that
• Robust non-profit sector
• All children have access to quality of education
• Higher population

Decision Making/Budget

• 80% funding for public safety pension
• High functioning government operating efficiently
• Puts people first
• Proactive stance in government
• Fiscally responsible
• Enhance data driven decisions
• Forest health
• Inclusive budget process
• Budget capacity to address all levels of service

After discussion Council identified the following community themes:

1. Safe and Healthy Environment
2. Inclusive and Engaged Community
3. Sustainable Infrastructure
4. High Performing Governance
5. Robust and Resilient Economy
6. Livable Community
7. Environmental Stewardship

A break was held from 11:13 a.m. through 11:25 a.m.
 
Council and staff divided into small groups to further define the themes.
 
A break was held from 12:00 p.m. through 12:20 p.m.
 
The results of the breakout activity where the general themes were defined is attached.
 
Ms. Reichelt indicated that each community result will have a definition that is specific to the themes and she will work with staff to develop a draft of the definitions for Council consideration.
 
Mr. Clifton thanked Council and staff for their participation and indicated that more information will be forthcoming as the PBB process progresses.