PADRE DAM

Five Year Business Plan: Fiscal Year 2018-2022

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E n s u r i n g a S t r o n g F u t u r e 2 | P a g e Accountability Flexibility Shifting Priorities Reallocation of Resources React to Unknown Reforecast Annually Detailed Budget Ongoing Reporting Performance Indicators Overall Spending Limits Accountability Flexibility Structure of the Plan The development of a successful business plan takes planning and engagement from staff; success measures should be developed and accountability woven throughout the plan. The development of a successful five year business plan takes even more forethought and careful planning. Decisions must be made based on what is known and assumptions of what may happen. However, it is not possible to perfectly predict what will happen in the future so a plan with a longer horizon needs to be flexible. Padre Dam's FY 2018-2022 Business Plan (Plan), and corresponding Five Year Budget (Budget), is the third of its kind; the innovative design, based on the 2007 original, has proven to be an enormous success. The Plan is designed to provide a balance between accountability and flexibility. Whereas the Plan outlines staff's goals and tools to measure performance to those goals, the Budget identifies the projected expenditures and revenues necessary to accomplish those goals. The development of the Budget is a comprehensive and thorough process. Departments must submit itemized budgets and justify all expenditures. Capital Equipment and Capital Improvement budgets must also be developed. All budgets are then combined and compared to projected revenue and reserve requirements. Many iterations occur and expenditures are cut or projects deferred in order to balance the budget. A rate increase is only justified after the Budget has been thoroughly vetted. Staff developed indicators to measure performance to the Plan's goals; performance to budget is reported to the Board monthly and performance indicators are published quarterly. Semi-annually, staff provides a comprehensive written report and presentation that details their efforts and highlights their accomplishments. Although staff is held accountable to perform and overall spending is limited, the Plan has flexible elements to ensure success. Funds may be moved between accounts and years if necessary and appropriate. Projects are continually reprioritized to ensure the most vital are achieved. Funds may be transferred between the operating, CIP and capital budget to accommodate justified, unanticipated needs if approved by the CFO. The Budget is refined annually to capture new information and react to previously unknown facts; it may also be adjusted if a significant event negatively impacts operations. However, overall spending is limited to the original approved Budget. Annually, the reforecasted Budget is presented to the Board for approval. Only in the event of an unforeseen, significant event would staff request a variance from the approved Budget.

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