Planning Beyond Your Next Budget to Assure Long Term Viability  & Avoid Deficit Spending
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Planning Beyond Your Next Budget to Assure Long Term Viability & Avoid Deficit Spending Webinar Presentation by : Dave Boerger – SEMCOG Rob Maleszyk – Warren Gerry McCallum – Orchard Lake Buzz Brown – SEMCOG/Munetrix March 12, 2013. Agenda.

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Planning Beyond Your Next Budget to Assure Long Term Viability & Avoid Deficit Spending

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Planning beyond your next budget to assure long term viability avoid deficit spending

Planning Beyond Your Next Budget to Assure Long Term Viability & Avoid Deficit Spending

Webinar Presentation by:

Dave Boerger – SEMCOG

Rob Maleszyk – Warren

Gerry McCallum – Orchard Lake

Buzz Brown – SEMCOG/Munetrix

March 12, 2013


Agenda

Agenda

  • Introductions & Overview – Dave Boerger, SEMCOG

  • Long Term Planning/Multi-year Budgeting - Dave Boerger

  • Best Practices & Case Studies:

    • Rob Malesczk –

      Controller – Warren

    • Gerry McCallum

      Director of City Services – Orchard Lake

  • Tools and Techniques – Buzz Brown – SEMCOG/Munetrix

  • Q&A/Wrap-up - Dave Boerger


Webinar logistics

Webinar Logistics

  • To ensure an audio connection to the Webinar, registrants should call-in using the phone number and access code below.

    • Call-in number: 1-408-600-3600

    • Access code: 664 035 638

  • For questions, type into the text or chat boxes on the lower right hand side of your screen. Each will be answered at the end of the webinar

  • For technical help, call Buzz Brown at 248-217-7979


Webinar logistics cont d

Webinar Logistics(cont’d)

Copies of this presentation will be emailed after the Webinar

Use the embedded hyperlinks to access on-line information

Please compete a webinar evaluation that will be emailed with the presentation

The webinar will be archived on the SEMCOG website at this link, which will be emailed with the evaluation.


Who is semcog 160 member local governments 7 counties 50 of michigan s population

Who Is SEMCOG? 160 Member Local Governments7 Counties = 50% of Michigan’s Population

Assist local governments deal with issues

Plan for common needs

Recognize regional opportunities.

Facilitate cooperation among local governments for mutual benefit.

Advocate for changes in public policy


Programs and services

Programs and Services


Local government revenues are dropping faster than costs

Local Government Revenues are dropping faster than costs


Fiscal best practices

Fiscal Best Practices

  • Lead, engage & communicate openly with stakeholders

  • Consent on fiscal & operational assumptions & targets

  • Have a long range financial plan/multi-year budget

  • Measure performance, compare to others and set goals

  • Publish/update your fiscal data on-line


Fiscal best practices cont d

Fiscal Best Practices (cont’d)

  • Reduce expenses and address unfunded legacy costs

  • Collaborate with neighboring communities

  • Develop contingency plans & alternative scenarios

  • Regularly report fiscal results/keep stakeholders updated

  • Recognize successes and address issues in a timely manner


Taxable value trends and forecast

Taxable Value Trends and Forecast

  • The average local government in

  • SE Michigan will experience a 26% drop

  • in Taxable Values from the peak before bottoming out in 2014 with a

  • small increase projected for 2015


Tax revenue decline of communities by region

Tax Revenue Decline- % of Communities by Region


Metro area home price indices

Metro-Area Home Price Indices

Source: S&P Case-Shiller


Costar commercial repeat sales indices q4 2012

CoStar Commercial Repeat-Sales Indices Q4 2012

Source: CoStar Group


Planning beyond your next budget to assure long term viability avoid deficit spending

Yearly Percent Change in SEV and Taxable Value; with Preliminary Forecasts, 2013-2015Southeast Michigan

Source: SEMCOG


Fiscal distress recovery

Fiscal Distress Recovery


Creating a long range financial plan multi year budget

Creating a Long Range Financial Plan/Multi-Year Budget

  • Engage & communicate openly with stakeholders

  • Consent on assumptions & targets, esp. revenues

  • Variance against current budget & YTD actuals

  • Perform a comparable community gap analysis

  • Include a long range capital improvement plan


Creating a long range financial plan multi year budget cont d

Creating a Long Range Financial Plan/Multi-Year Budget (cont’d)

  • Integrate performance goals & metrics

  • Ideally integrate into a multi-year budget

  • Link plan to Dashboard/Citizens Guide

  • Establish targeted action plans w/ dates & resp.

  • Develop contingency plans & alternative scenarios


Creating a long range financial plan multi year budget cont d1

Creating a Long Range Financial Plan/Multi-Year Budget (cont’d)

  • Implement stringent cost control measures

  • Regularly report results to plan/budget

  • Amend plan/budget as needed

  • Recognize accomplishments/address issues

  • Involve stakeholders continuously

  • Establish targeted action plans w/ dates & resp.


Best practices case studies rob maleszyk controller warren

Best Practices & Case Studies:Rob MaleszykController - Warren


Budget planning goals

Budget Planning Goals

  • Model known scenarios into Munetrix – 3 years

  • Verify how current assumptions impacted Fiscal Health using state indicator factors & KPIs

  • Conduct “what-if” budget assumptions into the system to see what impacts they had

  • Engage City Council to clearly show the impact their decisions or “no-decisions” would have.


Warren s budget history forecast

Warren’s Budget History & Forecast


Budget planning outcomes

Budget Planning Outcomes

  • Clearly showed that expense reductions alone would not get us to where we needed.

  • 2 Millage increases were needed and City Council was armed with the data to show the need

  • City council voted to pursue the millage initiatives

  • The Public supported the increases since they desired the levels of service and had the data necessary to make an informed decision.


Budget planning next steps

Budget Planning Next Steps

  • No time to rest – now the new PPT impacts need to be modeled into the system to update City Council and our Customers (residents) what will happen when we lose those tax revenues.

  • This changes the complexity of what we, “Thought we knew” from last year’s workshops.

  • We will have the necessary data to “Tell or sell our story” to residents, employees, labor unions, investors or state legislators.


Live demo modeling ppt impacts

Live DEMOModeling PPT Impacts


Best practices case studies gerry mccallum director of city services orchard lake

Best Practices & Case Studies:Gerry McCallumDirector of City Services – Orchard Lake


Multi year budgeting

Multi-Year Budgeting

http://www.gfoa.org/index.php?option=com_content&task=view&id=1279&Itemid=566


Orchard lake multi year budget process

Orchard Lake Multi-Year Budget Process

  • Finance Committee develops assumptions

  • Council approves assumptions

  • Assumptions used to generate multi-year budget

  • Public hearing on proposed budget

  • Council approves multi-year budget

  • Staff reports on progress to budget quarterly

  • Staff recommends and Council approves amendments as needed


Assumption setting

Assumption Setting


Auto generation of various scenarios alt plans

Auto-generation of Various Scenarios/Alt. Plans


Auto generation of multi year budget

Auto-generation of Multi-Year Budget


Auto generation of f65 data munetrix upload

Auto-generation of F65 Data & Munetrix Upload


Planning beyond your next budget to assure long term viability avoid deficit spending

Live DEMO

Modeling Orchard Lake Assumptions


Wrap up final thoughts dave boerger

Wrap-up & Final ThoughtsDave Boerger

  • Communities can be proactive in avoiding deficit spending by planning ahead with long range financial plans or multi-year budgets

  • Use your Citizen’s Guide and Dashboard to promote Economic Development by showcasing a vibrant, fiscally responsible organization to potential investors. Leverage your schools as well.

  • Leverage SEMCOG & Munetrix on-line resources or Solicit Help from SEMCOG’s consulting team at no cost to member local governments


Sampling of our services

Sampling of Our Services

  • Shared service assistance

  • Privatization help

  • Court consolidation

  • Department consolidation

  • Munetrix fiscal information

  • AgileGov searchable database

  • Millage vote readiness assessment

  • Webinar training on timely topics

  • Citizen Guide/Dashboard development

  • Citizen surveys w/ Cobalt

  • Comparable benchmark analysis

  • Budget assistance

  • Performance measurement

  • Fiscal assessment process

  • Energy efficiencies

  • Presentation to elected officials/staff

  • Taxable value forecasts

  • Financial plan development


Q a webinar evaluation

Q&AWebinar Evaluation

  • Type your questions into the text box on the right hand side of your screen

  • Complete and return a webinar evaluation that will be emailed along with this presentation shortly after the webinar

  • The webinar will be archived on the SEMCOG website at this link within the week


Planning beyond your next budget to assure long term viability avoid deficit spending

For additional information or assistance, contact:

Dave Boerger, SEMCOG

248-875-7120

[email protected]

www.semcog.org

Buzz Brown, Munetrix

248-217-7979

[email protected]

www.munetrix.com


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