Elected Officials Guide to Government Finance · Government Finance Officers Association ... •...
Transcript of Elected Officials Guide to Government Finance · Government Finance Officers Association ... •...
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Elected Officials Guide toGovernment Finance
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Presenter, Mike BaileyFinance Director
City of Redmond, WA
In Partnership with the Government Finance Officers Association
of the United States and Canada
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www.gfoa.org
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Goals for the Session• Review “Planning and Budgeting” section of the Elected Officials Guide
• Strategic planning / Long‐term financial planning• Financial sustainability• Budget as a key policy tool
• Public involvement / transparent decision making• Revenues – policy and implications• Monitoring / financial reporting• Fund balances
• Performance Reporting
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Strategic Plans• Take many forms
• Land use plans • “Comprehensive Plan” in Washington• “General Plan” in California
• Mission, Vision and Values• Broad Goals• Areas of Emphasis• Results or Outcomes based• And – Strategic Plans
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Value of Strategic Plan in Budget• Washington’s “Growth Management Act”
• Land use must be supported by needed services• Infrastructure plans should be in place
• To provide services at established service levels• Therefore, as you designate permissible land uses:
• Establish service level goals and thresholds• Use in capital budget planning
• Understand existing inventory and service levels• Be intentional about connecting investments to your plans
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Value of the Plan• Create a purpose and targets for the county• Align finances with purpose and targets• Have policy discussions and then provide policy guidance on priorities
• A standard to measure against• Are we spending our money on our priorities?• Can we tell? (do we know what our priorities are,can we see how spending aligns – or doesn’t)
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Value of the Plan• Can you see a connection betweenwhat you spend and your goals?
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Approaches to Create a Plan• Should represent the organization as a whole
• If not, should be clear about scope and authority
• Should be policy level • The “what”, not the “how”
• Not your normal, day‐to‐day business• Unique setting, facilitator, pre‐work, inclusive
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Examples
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County of Bath, VA
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Examples
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Chester County, PA
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Examples
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Examples
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Jackson County, Michigan
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Examples
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Polk County Florida
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Examples
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Chester County, PA
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Examples
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Arapahoe County, Colorado
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Examples
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Kent County, Michigan
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Examples
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Sauk County, Wisconsin
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Long‐term Financial Planning• Financial Policy basis
• On‐going resources pay for on‐going costs• Investments in capital plant / long‐term liabilities• Fund balance targets• Uses of fund balance
• Trend / forecast analysis• Can be effective at high level
• Greatest risk to success is too much detail
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Financial Sustainability• Difficult in most environments
• If you’re healthy now, just wait (economic cycles)
• Budget process forces decisions to balance• Resets for future sustainability• Decisions should be based on priorities
• Long‐term impact of current decisions• Model for it• Operating impacts of capital investments
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Examples
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www.redmond.gov/budget
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Jackson County, Michigan
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Budget as a Policy Document• Roles of your budget:
• Legal compliance• Policy (financial policies, goals, revenues)• Operations (staffing levels, departments, activities)• Financial (revenues, expenditures, fund balance)• Communications (told in a story – to you)
• Summarized in a budget message• The above topics make a great message outline
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GFOA Effective Budget Presentation
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Encourage Citizen Participation• Required public hearings• Other opportunities:
• Surveys (formal / structure, surveymonkey)• Community meetings• Existing venues / forums• On‐line / social media approaches
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Examples