HomeMy WebLinkAboutFinancial Sustainability Tool Kit presentationFinancial Sustainability Tool Kit
Town of Westlake May 24, 2010
Understanding Financial Sustainability
Asking the right Questions:
Spending within our means?
On-going and one (1) time revenues differentiation?
Understand resource allocation decisions: are they tied to revenues?
Defined revenues (manual)?
Maintaining adequate reserves?
Budget vs. actual?
Compensation system?
Infrastructure maintenance?
New infrastructure?
Background & Context
Strategic Plan
First steps
The “rear view mirror”
Achieving Financial Sustainability
Financially Unhealthy
Financially Unhealthy
Financially Unhealthy
Financially Unhealthy
PDB
PDB
PDB
Priority Driven Budgeting
Aligning resources with desired and prioritized outcomes
Section 2 Financial Forecast
By Fiscal Year 2012 – 2013:
General Fund depleted
Visitors Fund depleted
Section 3 Our Revenues
Understanding them
Revenue Manual
Poor diversity/stability
Forecasting
Sales tax analysis
Town Services/Expenditures
Section 4
Section 5 PDB
Using Program Budgeting?
Program?
Activity?
Measures
Towards A New Model
Deciding what we want Westlake to be
Service Mix to attain Visitor Fund and Values to guide that mix
Determine the “Price of Government” for Nos. 1 & 2
Square up financial policies with Nos. 1 & 2
Citizen Engagement/Information
Govern & Manage to the new model
Efficiency
Representation
Social equity
Individual rights
Effectiveness
Equality
Financial Sustainability Wrapping Up
VVM “lock in on it” by consensus
Apply values (equity, individual rights, etc)
Prioritize programs by guiding principles
Adjust revenues to fit the new model (note: This can include new revenues)
Adjust financial policies to support the new model
Policy Decision
Multi-year approach
Determine “true annual operating budget: based on Fiscal Year 2009-2010 actual expenditures
Self-fund all direct and indirect municipal cost
Capital expenses covered by WAF/HOC
Adjusting WA for the New Model