Putting Together & Utilizing a Forecasting Budget 2015 Ohio Township Association Winter Conference

Transcription

1 Putting Together & Utilizing a Forecasting Budget 2015 Ohio Township Association Winter Conference

2 Putting Together & Utilizing a Forecasting Budget Liberty Township, Butler County Located in northern Cincinnati Approximately 37,000+ residents and 250 businesses Comprised of (6) different departments Administration Finance Planning & Zoning Services -includes Parks & Cemetery Fire & EMS Police- contracted thru the Butler County Sheriff s Office Liberty Township s Budget 2014 Budget = $21.3M 2015 Budget= $23.9M

3 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Tools: Capital Improvement Plan (CIP) Includes: Capital Equipment, Vehicles and Projects Data provided by each department manager Completed by our Finance Department Updated annually at the beginning of the year 7 Year Forecast Incorporates the CIP data Makes general assumptions for future year revenue/expenses beyond CIP Completed by our Finance Department with input from department managers Updated annually after the CIP, and before the annual budget process Shared with our Finance Committee for input

4 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Tools: Annual Budget Incorporates data from the CIP and 7 year forecast Detail out by line item to understand expenditures and revenues included Meet several times with each department manager, Finance Department and Township Administrator prior to submitting to the Board of Trustees Review with the Board of Trustees in a Budget Work Session Final Budget approved at year end

5 Putting Together & Utilizing a Forecasting Budget Why Implement a Forecasting Budget? Plan for purchases Create a rotation to avoid replacing all at once Understand the needs for future years to accommodate purchases Look for ways to collaborate with other entities on timing of purchases Proactively address potential changes to revenue streams Determine levy needs and timing Address future funding cuts/reductions Research other revenue options to cover costs tools in the toolbox Understand future needs of the Township Address the big picture Township as a whole Assess needs of each department Realize areas of concern that need prompt attention Mitigate potential shortfalls and reductions in services

6 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: Capital Improvement Plan (CIP) Step 1- Commences at the beginning of the year Focus is on capital items only Utilize Excel spreadsheets that include: Capital Equipment, Vehicles and Projects Department managers are responsible for updating their CIP information Information is updated and analyzed by the Finance Department

7 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: Capital Improvement Plan (CIP) Takes into account potential needs for the future Equipment & vehicles considered based on year/status/needs Any upcoming projects that may be necessary Data from the CIP is then entered into our long term forecasting plan for further evaluation Items may shift from year-to-year based on budget approval and need Keeps items on the radar for the future

8 Capital Improvement/Projects Summary: Putting Together & Utilizing a Forecasting Budget

9 Capital Vehicles Summary: Putting Together & Utilizing a Forecasting Budget

10 Capital Equipment Summary: Putting Together & Utilizing a Forecasting Budget

11 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: 7 year forecast Step 2- Follows the completion of the CIP Utilizes the CIP data from each department Completed by the Finance Department with input from the department managers Reviewed by the Finance Committee for further input Annually updated to reflect changes in data and prior year information Completed in addition to the annual budget Aids in preparing annual budget

12 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: 7 year forecast Provides a snapshot of what might come based on estimated data Allows for the adjustment of expenditures based on net cash flow predicted Expenditures typically calculated based on 3% annual increase Utilities typically calculated at 5-8% Information is further compared against prior year and future known data and adjusted accordingly Revenues calculated based on prior year data and upcoming anticipated legislative changes Conservatively budget revenues, with caution not to over or under estimate

13 7 year forecast- Expense Example Putting Together & Utilizing a Forecasting Budget

14 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: 7 year forecast- Revenue Example

15 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: 7 year forecast- Summary Example

16 Putting Together & Utilizing a Forecasting Budget Liberty Township s Forecasting Process: Annual Budget Step 3- Final step in forecasting process Take the information/data collected from CIP & 7 year forecast Meet several times with department managers and Finance department Provide thorough detail for various line items This is helpful throughout the year if department managers need to know where to charge an item Shared with the Finance Committee for review and input Draft budget presented to the Board of Trustees in a Special Meeting as a work session Based on discussion from the Board of Trustees data is updated Final budget is approved during the last week of the year

17 Putting Together & Utilizing a Forecasting Budget Questions? Kristen Bitonte Township Administrator kbitonte@liberty-township.com

18 Putting Together & Utilizing a Forecasting Budget OTA Winter Conference January 28 & 30 Bob Maurer, Fiscal Officer Dublin Township, Mercer County

19 Is there an advantage to preparing a five year forecast?

20 What information do I need to have? You will need a list of your levies and the year the levy expires. - You may want to investigate placing the renewal of a levy on the ballot in the year prior to the year of expiration. Do you have employees that accumulate sick leave, vacation, and comp time. Is it possible any of those employees might retire, resign in the coming years. - You might ask why do I need to consider this. You might want to increase salary expenditures. Ask the trustees what plans they have for capital expenditures, not only for the current year but for the next five years.

21 What kind of spread sheet will I have to prepare? How many of you in the audience are current UAN users? For those UAN users, you already have the information in the budget section of UAN Lets take a look at some of the worksheets

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