Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Leveraging Financial Resources
Long Range Financial Planning Update
PRESENTED TO MECKLENBURG BOARD OF COUNTY COMMISSIONERS
JANUARY 27, 2016
◦Linkage to County Strategic Plan
◦Long Range Financial Planning Tool
Leveraging Financial ResourcesLeveraging Financial Resources
76-1
Leveraging Financial ResourcesLeveraging Financial Resources
Linkage to County Strategic Plan
Agreement on Mission & Goals
Linked to Objectives and Outcomes
(annual / 3 Yr. / beyond)
Prioritized for Impact (unconstrained)
Balanced to fit Fiscal Reality (constrained)
Annual Budget / Work Plans aligned to
Strategic Plan Timeline
Leveraging Financial ResourcesLeveraging Financial Resources
76-2
Sounds Simple, but in Reality it is Complex
Leveraging Financial ResourcesLeveraging Financial Resources
A Building Block to Success
Leveraging Financial ResourcesLeveraging Financial Resources
76-3
A Balancing Act of $ and Time
Leveraging Financial ResourcesLeveraging Financial Resources
Leveraging Financial Resources
CountyServices
Education
Capital/ Maintenance
Economy/ Fiscal Policy
Legislative Mandates
Leveraging Financial Resources
Priorities and Constraints Inclusive of
76-4
Competition for Resources
Leveraging Financial ResourcesLeveraging Financial Resources
Necessary Tool – Long Range Planning Model
Leveraging Financial ResourcesLeveraging Financial Resources
76-5
Why Long Range Financial Planning (“LRFP”) Model
◦ Fiscal roadmap for where the County wants to go
◦ Integrated with Strategic Plan
◦ Includes operating budgets, capital, debt, other resources
◦ Designed to identify options and avoid problems
Leveraging Financial ResourcesLeveraging Financial Resources
LRFP Application for the County – Benefits
◦ Clarifies financial impact of strategic intent
◦ Imposes fiscal discipline (short‐term and long‐term)
◦ Speeds answers to “what if” questions
◦ Communication aid to citizens, BOCC, staff, and Rating Agencies
Leveraging Financial ResourcesLeveraging Financial Resources
76-6
LRFP – Uses (examples)
◦ Updates to annual forecast (revenues, expenditures, fund balances)
◦ Current year
◦ Impact on future years
◦ Budget / Actual reporting
◦ Financial Statistics and Metrics (financial, debt, capital plan performance)
◦ Property Revaluation planning (assessed value / tax rates)
Leveraging Financial ResourcesLeveraging Financial Resources
LRFP – Uses (examples)
◦ Current and future CIP capacity
◦ Balance of PayGo and Debt Financing
◦ Balance of “fixed” commitments and “discretionary spendingopportunities”
◦ Economic impact of future legislation (example – Sales Taxredistribution)
Leveraging Financial ResourcesLeveraging Financial Resources
76-7
County is currently building a LRFP Model – Anticipate a May 2016 implementation
◦ Quantrix model which will integrate with budget, accounting, debt, andcapital systems◦ Independent revenue forecasting model (led by UNCC economist, John
Connaughton)
◦ Six year outlook (current budget year + 5 future years) plus 3 years of history
◦Managed by Finance but allows for multiple users to view outputs andperform sensitivities
Leveraging Financial ResourcesLeveraging Financial Resources
While the real model is under construction, we have built a simple prototype which I will now highlight and demonstrate
◦ Impact of Sales Tax Redistribution Legislation
◦ Property Revaluations
◦ CIP Capacity and Funding
Leveraging Financial ResourcesLeveraging Financial Resources
76-8
Leveraging Financial ResourcesLeveraging Financial Resources
Leveraging Financial ResourcesLeveraging Financial Resources
76-9
Leveraging Financial ResourcesLeveraging Financial Resources
Questions?
Leveraging Financial ResourcesLeveraging Financial Resources
76-10
Leveraging Financial Resources
Long Range Financial Planning Update
PRESENTED TO MECKLENBURG BOARD OF COUNTY COMMISSIONERS
JANUARY 27, 2016
76-11