One year. That’s about the extent most communities are planning ahead – or less if the budget year is partially over. We help remedy this situation by working with member communities like Eastpointe, Keego Harbor, Wayne, Waterford Twp., and Oak Park to develop long-range financial plans to help the community plan beyond the typical one-year budget cycle. The financial planning tool was developed by John Kaczor for the Michigan Treasurer, which we enhanced to include benchmark data and other improvements.
The tool is easy to use via an Excel spreadsheet and readily allows a community to assess various scenarios for balancing revenues and expenses. As indicated in the chart below, the first cut of the financial forecast always shows a seriously deteriorating fund balance as revenues drop and expenses rise. We help community officials vary the assumptions, analyze the results, and recommend actions to balance revenues and expenses allowing fund balance to be sustained.
Click here for a sample financial plan that can be readily applied to your local government. Also, no-cost help for SEMCOG member communities is available by contacting Dave Boerger.
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