Linking Performance Measurement to Budgeting.

This article provides performance measurement examples from the City of Fort Lauderdale, Florida, including the application of performance data in key decision making processes.

Measurement is intrinsic to daily modern life. Watches and clocks keep track of rime. Scoreboards tally the progress of sporting events. Students are evaluated on the basis of test scores. In the workplace, the science of measuring work has been around as long as its pioneer, Frederick Taylor. More recently, there has been an emphasis upon measuring performance. In the public sector, several public interest groups have contributed to the creation and use of performance measurement. The International City/County Management Association, the Urban Institute, and the Governmental Accounting Standards Board have all endorsed the use of performance measures as an integral part of public administration and financial accountability.

GFOA has been at the forefront of advocating the use of performance measurement. With the publication of its recommended budgeting practices, GFOA forever linked performance measurement to the budget process. The purpose of this article is to review the linkage between performance measures and resource allocation in the City of Fort Lauderdale, Florida.

Background

The City of Fort Lauderdale has a current operating budget of $337 million. The city has a year-round residential population of 150,000 people, with an additional six million tourists visiting each year. Fort Lauderdale serves as the county seat for a population of 1.5 million. It is a full-service city with police services that include the only municipal jail in Florida, fire-rescue, two water treatment plants, a regional wastewater treatment facility, a spring-training baseball stadium, an auditorium, a public beach, a swimming complex, and a general aviation airport. The elected officials rely on the advice from 28 advisory boards, including a budget advisory board. In addition, there are 76 neighborhood associations who participate in public dialogue through a council of civic associations.

Creating Performance Measures

GFOA has defined performance measures as data used to assess how efficiently and effectively functions, programs, and activities are provided and determine whether goals are met. Exhibit 1 illustrates the steps in creating a performance measurement system.