Neither of these processes is Zero Based Budgeting. As noted, true ZBB requires that each service’s budget be built from scratch each year based on the desired service level for the forthcoming year. City of Windsor Councils over the past 10 to 15 years, have in fact achieved budgets in multiple years with no total tax levy increases (and actual decreases in some years). However, it is noted that none of these notable accomplishments, which are largely unprecedented in the municipal sector, were achieved using a true ZBB.
In many cases, program reviews were completed outside of the budget process to find lower cost alternatives to providing similar services. These business cases notably included the outsourcing of garbage and recycling collection, parking enforcement, the provision of childcare, review of caretaking services, and a variety of cost saving measures brought forth by the various departments. More recently, our internal auditors completed a value for money audit on winter control, and a study on emergency shelter services was just completed by an independent consultant. These are just a few examples of the types of reviews that are completed on a regular basis. Each of these reviews represents a detailed business case analysis of a particular service and/or program provided by the City in order to inform City Council relative to its budgetary decisions for the provision of that service and/or program.
Additionally broader reviews like the Sewer Master Plan, Recreation Master Plan, Transit Master Plan and the Stormwater Financing Study also represent detailed reviews of services provided. These reviews all ultimately feed in to the annual budgeting process and provide Administration the necessary information to formulate recommendations to Council for the annual budget. Council could at any time direct administration to review specific programs or services that it would like reviewed in the future. To do so for all services for a specific budget year, as would be required in order to build the whole budget based on the ZBB model would NOT be achievable at current staffing levels even without the challenges currently faced due to the ongoing pandemic.
If the primary intent of the ZBB directive is related to a wish to achieve a 0% property tax levy increase in fiscal 2021 as was achieved for a number of years, such guidance can be provided to Administration relative to preparation of the 2021 budget. Administration would then bring forth a recommended budget following the fiscal guidance targets directed by City Council. It is noted that in recent budgets as directed by City Council, Administration has consistently brought forward options which could be considered to bring the recommended tax levy increase to zero.
Alternatively, if the intent of the ZBB directive is related more to a desire for a greater or earlier involvement of council in the budget preparation process, that intent can be facilitated by the process described in the next section on the Participatory Budget process.
Participatory Budget Process
The Participatory Component of the requested Participatory Zero Based Budget Process can refer to participation by City Council, the Public or both groups. Depending on the desired aspect of this component, Administration would structure the budget process and timelines differently.