The Daily Inter Lake

Flathead County Administrator Mike Pence is proposing a series of changes that could help the county operate more like a business and encourage elected officials and department heads to be more accountable for their performance.

The changes are outlined in the fiscal 2008 business plan, which was recently presented to the county commissioners in draft form.

"My feeling is, there will be some major improvement coming out of this effort," Pence said. "I think it will force us to be more focused. That's why I wrote it; it's as much for me as for the department heads."

The county currently employs more than 500 people in 29 departments. Its annual budget is about $61 million, of which $23.4 million comes from local property taxes.

Besides Pence and the commissioners, the management team includes eight other elected officials, five contract managers who report to independent boards, and another dozen contract managers who serve the commissioners.

In the past, tracking the performance of all these individuals has been difficult, both because their responsibilities and management styles are so diverse, and because there hasn't been a clear mechanism to monitor their accomplishments.

Pence hopes to change that with something he refers to as "performance budgeting."

The process requires every department to create its own business plan, complete with goals and objectives, as part of the annual budget process.

Department heads then would provide periodic reports to the commissioners throughout the year, indicating how they're doing with respect to their goals and objectives.

The idea, Pence said, it to set up a system that forces the management team to maintain a yearlong focus on goals, objectives and performance, so that it doesn't get distracted by day-to-day issues and emergencies.

"The reporting will be focused on the real purpose and performance of each department/office," he wrote in the 2008 plan. "Our management team must become solution-oriented. We all know the serious challenges [facing the county], and we need creative solutions that fit within our budgetary constraints."

In addition to the periodic reports, Pence wants each department head to submit an annual performance report, which the commissioners will use to evaluate the department and which will tie into the budget process for the next fiscal year.

It's unclear if department budgets will suffer if they don't meet their goals and objectives. However, given the level of independence some officials maintain, budget approval and oversight is the only sure authority the commissioners have to encourage everyone to pull in the same direction.

Other initiatives highlighted in the 2008 business plan include:

. The new capital improvement plan - The business plan indicates that "the commissioners and management team understand that capital expenditures are the first dollars funded with the annual budget. If there are difficulties balancing the budget, adjustments in [departmental operating budgets] will need to be made. Typically, the capital needs will be automatically budgeted, per the capital improvement plan."

. County Web site - Within the next year, the county expects to enhance its Web site to allow for online tax payments and vehicle license plate renewals, as well as other amenities.

. Cell phones - At least two different cell phone companies provide service to various county departments and individual employees. Pence wants to examine this practice and determine if it's possible to consolidate service with one company.

. Annual operations report - Public corporations typically provide an annual report to their stockholders, letting them know how the company did in the previous year. Pence wants the county to initiate a similar policy, so taxpayers have a better idea of where their money is going and what they're getting in return.

After reviewing the draft 2008 business plan, the commissioners on Thursday unanimously approved a new, three-year contract for Pence, with a base salary of $100,743.

"I think Flathead County is fortunate to have the caliber of administrator that we have," said Commissioner Gary Hall. "I think he's doing an outstanding job for the county and the community."

Reporter Bill Spence may be reached at 758-4459 or by e-mail at bspence@dailyinterlake.com