The Integrated Planning and Performance Framework

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1 The Integrated Planning and Performance Framework Issue This briefing note provides an overview of the City's Integrated Planning Multi-Year Budgeting and Performance Framework and addresses four major components of the Framework: strategic planning; service planning; multiyear budgeting; and performance monitoring and reporting. Background The City of Toronto is committed to demonstrating accountability, and has recognized the importance of long-term planning and priority-setting. In an effort to provide a strategic approach that supports sound decision-making with meaningful information to assess policy impacts and service performance, and to demonstrate value in how monies have been spent, the City employs an integrated planning and performance framework that incorporates leading practices. The framework is built upon an integrated multiyear approach designed on the principles of continuous improvement, priority setting, performance monitoring, evaluation and reporting. The Integrated Planning and Performance Framework connect Council's goals to service objectives and multi-year budgeting priorities. TRANSITION TO TERM PAGE 1 COUNCIL BRIEFING VOL.1

2 The Integrated Planning and Performance Framework enables the City to: Take a multi-year view to guide service planning, budgeting and the allocation of resources. Set performance measures and targets to ensure that multi-year budgets meet the goals and directions set by Council. Provide increased transparency and accountability regarding the services it delivers to the public. Ensure resources are efficiently allocated to services to achieve longterm strategic outcomes. Monitor results and impact of services; thus providing staff and Council with the added capacity to re-allocate resources based on short and long-term goals. The Integrated Planning and Performance Framework incorporates best practices and proven methodologies in implementing its major components: strategic planning, service planning, multi-year budgeting, and performance monitoring and reporting. Strategic Planning In 2002, City Council approved its Strategic Plan, which sets out the longterm vision and strategic goals for the City. Since then, the City has made great strides in accomplishing most of those goals, which have set a strong foundation for the future. At its meeting of October 8-11, 2013, City Council affirmed 26 new strategic actions to guide the City's service planning, multiyear budgeting and performance measurement initiatives for 2013 to Service Planning Service planning is a key pillar of the Integrated Planning and Performance Framework as it provides the link between strategies and budgets. It seeks to translate high-level strategies into service objectives that are linked to Council's strategic actions and priorities, and to guide the allocation of resources during the budgeting phase of the process. Planning is essential for effective service delivery and good financial management. A common service planning process: Provides clear accountability for achieving Councils goals and strategic actions; Provides Committees and Council with the ability to establish relative service priorities and establish objectives, targets and outcomes; and TRANSITION TO TERM PAGE 2 COUNCIL BRIEFING VOL.1

3 Guides and informs the budget process by establishing service levels and multi-year estimates of resources required to achieve service objectives and outcomes. Multi-Year Budgeting In 2006, City Council approved a new budget process that was further refined and reaffirmed by City Council in 2011 (see Appendix 1) based on generally accepted principles: 1. Establish Broad Goals to Guide Decision Making a government should have broad goals that provide direction and serve as a basis for decision making; 2. Develop Approaches to Achieve Goals a government should have specific policies, plans, programs and management strategies to define how it will achieve its long-term goals; 3. Develop a Budget Consistent with Approaches to Achieve Goals a financial plan and budget that moves toward achievement of goals, within the constraints of available resources, should be prepared and adopted; and 4. Evaluate Performance and Make Adjustment program and financial performance should be continually evaluated and adjustments made to encourage progress toward achieving goals. The key elements of the City's Multi-year Financial Planning and Budgeting Process: Engages stakeholders in priority-setting through upfront public consultation, Has a long-term perspective for planning and budgeting that promotes service and fiscal sustainability, Introduces a structured service planning process that links resource allocations to service objectives and targets driven by Council priorities, Is service-based and performance-focused: it focuses budget decisions on service objectives, service levels, results and outcomes using performance targets and metrics, Emphasizes the evaluation of service performance so that planned results are achieved, Establishes roles and responsibilities for Standing Committees, the Budget Committee and Executive Committee. TRANSITION TO TERM PAGE 3 COUNCIL BRIEFING VOL.1

4 The City's multi-year, service-based budgeting process is intended to establish a longer-term focus regarding the allocation of resources required to deliver the programs and services needed by the community, and to accomplish Council's goals and priorities for its term of office. Multi-year budgeting enables City Programs and Agencies to set achievable targets within realistic timeframes, and provides a more efficient, systematic and consistent approach to prioritize and allocate resources across all services. Performance Monitoring and Reporting The City is also implementing a performance measurement and reporting process to support the integrated framework. Program maps have identified all services, thus providing a functional model of government services provided by the City. This service inventory will form the basis of reporting to the public on service performance, and will establish linkages between service planning, multi-year budgeting and reporting. The Financial Planning Analysis Reporting System Project The Financial Planning Analysis Reporting System (FPARS) project was established to: Strengthen the foundational elements of sound financial planning, budgeting and performance management; Establish principles and best practices that will support the City's transition towards a service-based and performance focused organization; and Implement Strategic Action #24: Improve Service and Financial Planning. The FPARS Project was approved to deliver: Service inventory for City Programs and Agencies. Service planning as a formal process. Multi-year service-based planning and budgeting. Processes to organize financial, complement, payroll and performance data in service view. Performance inventory for City Programs and Agencies. Processes and tools to analyze and report on service performance and results. Organizational change management strategy and plan to support business transformation. Implications TRANSITION TO TERM PAGE 4 COUNCIL BRIEFING VOL.1

5 The implementation of the key components and processes of the Integrated Planning and Performance Framework will result in a more unified approach that aligns the various planning efforts across the organization and links strategy to budget with approved performance measures. Current Status and Next Steps The current status and next steps of the key components of the Integrated Planning and Performance Framework are set out below: Strategic Planning In March 2014, Council reaffirmed its Strategic Plan and approved 26 new Strategic Actions to advance its vision, mission and goals for the City. The Strategic Actions guide the City's service planning, multi-year budgeting, and performance planning processes and complement current initiatives and Council priorities. Performance planners have also been restructured to align strategic themes and actions to work plans. City Council requested the City Manager to bring forward a process in 2015 to update Council s 2002 Strategic Plan including public and stakeholder consultation. Service Planning Building on current divisional, sectoral, business and service plans, the City will establish a common, multi-year, service-based planning approach to: Establish 5-year Service Plans that link to the City's Strategic Plan and Actions to Service Based Budgeting. Set service objectives, measures and targets for both service and organizational drivers. Set priorities for Committee and Council to guide the budget process. Multi-Year Service Based Budgeting The City of Toronto has established a multi-year service-based budgeting process and tools for the operating budget. Business processes have been re-engineered to organize financial, complement and payroll data according to the services the City provides. The Public Budget Formulation (PBF) tool, which went live in May 2013, has been designed as a single point-of-entry for all budget information and is now used by City Programs and Agencies to prepare multi-year service-based operating budgets. Specifically: TRANSITION TO TERM PAGE 5 COUNCIL BRIEFING VOL.1

6 Program Maps, Service Inventory and Service Profiles (including service levels) have been established for all City Programs and Agencies. Multi-year, service based budgets were developed and approvedby Council for 155 services beginning in Tracking of actual expenditures and staff complement based on services began in The next steps for City Divisions and Agencies is to monitor financial performance within the new service structure and take any necessary actions to manage their operations. Performance Measurement A database of 900 performance measures have been established to monitor and report service performance. The performance measures are being analyzed and refined to ensure that they are suitable for monitoring and reporting key aspects of service performance. Staff are currently developing the (technical) capacity and processes for reporting on service results. Contact Josie La Vita Director, Financial Planning Financial Planning , jlavita@toronto.ca Lynda Taschereau Executive Director, Strategic & Corporate Policy City Manager's Office , ltascher@toronto.ca TRANSITION TO TERM PAGE 6 COUNCIL BRIEFING VOL.1

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