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VIDEO RECORDING With the influx of federal funding from multiple programs, pending new legislation that could affect existing American Rescue Plan requirements and the diverse needs of your constituents and communities, planning your resiliency effort is more important than ever. In discussions with community leaders, Baker Tilly has advocated for a purposeful and thoughtful strategic planning process that engages stakeholders, maximizes funding sources and coordinates efforts.  Much like a compass and a map, your community can move in several directions. No matter where you are now, the Baker Tilly COMPASS team of strategic planning and funding specialists will meet you there. Watch this on-demand webinar recording as we break down the issues to consider and provide a roadmap for you to assess, build and execute your community’s strategic plan. Key takeaways After viewing this webinar, you will be able to: Review the most current information on all major federal funding sources, including passed and pending legislation (American Rescue Plan, Infrastructure Investment and Jobs Act, Build Back Better Act, Flexibility Act, etc.) Discuss recommended approaches to conduct a community assessment and gather stakeholder input Identify and align available resources using Baker Tilly’s federal funding bill tracking tool Develop effective strategies to prioritize and map resources and funding Explore leading practices in strategic planning, documentation, compliance and risk management that support procurement, investment and spending of various funding Walk through examples of Baker Tilly COMPASS in action Presenters and subject matter specialists Amanda Blomberg, CPA, Firm Director, Public Sector Practice Kate Crowley, Principal, Public Sector Advisory Leader Dan Hedden, CPA, Partner, Public Sector Practice Eric Walsh, CPA, Partner, Baker Tilly Municipal Advisors 
For more information, or to learn about how Baker Tilly COMPASS can help your community, contact our team.

Review federal funding sources (ARP, Infrastructure, BBB) and gain insights into sound strategic planning practices for local governments.

Public Sector Advisory 

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Municipal Advisory Services for Local Governments

Municipal Advisory Services for Utilities

Slow down to speed up: building your strategic funding plan

Client background Fort Wayne City Utilities (FWCU or the Utility) is a regional utility owned and operated by the City of Fort Wayne, Indiana, providing water, sewer/wastewater and stormwater services to its customers. Fort Wayne is Indiana’s second-largest city and is the heart of the Northeast Indiana economic region. FWCU serves a population of approximately 270,000 within the Fort Wayne city limits and approximately 43,000 outside the city limits. In addition, the utility provides wholesale water and sewer treatment services to several surrounding communities. FWCU has 360 employees and a $150 million annual budget. Infrastructure assets include 1,429 miles of water mains, 1,416 miles of sewers and 697 miles of storm sewers. FWCU is governed by a strong mayor-council government and a Board of Public Works. A director, appointed by the mayor, oversees the Utility’s three water utilities and four business units – business services, engineering, operations and policy and planning. FWCU also seeks guidance from a local Utility Advisory Board comprised of local stakeholders, including neighborhood leaders and representatives from local organizations. FWCU developed and adopted its first strategic plan in 2005, in which it now updates and publishes on a five-year basis. The initial plan included a vision, mission statement, values, defined goals and objectives for FWCU and business strategies needed to be successful in the future. Further, the strategic plan documented and analyzed the issues FWCU needed to address in the coming years to achieve its goal of being the utility of choice for the Fort Wayne region, which included recognizing the competitive forces at play. After acquiring several private utilities in the region and expanding its footprint, the Utility realized its overarching goal was achieved, which prompted the development of a new long-term strategic plan. Organization challenge After successfully implementing the first strategic plan, as a next step, the Utility engaged with Baker Tilly Municipal Advisors (BTMA) to provide supplemental strategic planning and consulting services to FWCU’s executive leadership team by bringing a broad and experienced external perspective as well as financial and accounting expertise to the generation of an even more comprehensive strategic plan that would capture and monitor the Utility’s established goals, objectives and priorities for the next five years.  Baker Tilly’s collaborative approach The new strategic plan required recommendations to guide key policy, facility, personnel and training and resource allocation decisions during the five-year period. Further, FWCU reinforced the importance of following the 10 Attributes of Effective Utility Management to measure individual, departmental and utility-wide performance, which would also be reflected in the final strategic plan. The process to update and produce the FWCU strategic plan included the following: Meetings with FWCU leadership Meetings with FWCU stakeholders, including:
- City Department heads
- Current and former elected officials
- Representative of the development community
- Member of the Utility Advisory Board
- Employees in representative groups Online employee survey The meetings with all of the stakeholders focused on discussing the strengths, weaknesses, opportunities and threats (SWOT analysis) to FWCU – and its customers. What does FWCU do well and what areas need improvement? The collaborative efforts of FWCU and BTMA produced a strategic plan resulting from the above process, particularly identifying six strategic initiatives: Human capital development Community and employee engagement Customer service Technology Affordability and cost management Environmental stewardship and conservation  Each of the six strategic initiatives includes goals, actions and parameters to measure success detailed in the plan, which informs and guides the FWCU’s operations for the next five years. The significant stakeholder input sought and incorporated into the plan provides a broad base of support for the strategic initiatives and instills confidence in Utility leadership that its objectives align with community needs.  Results achieved Fast-forward to 2020. FWCU is in the middle of implementing its 2017-2022 strategic plan – and the COVID-19 pandemic happens. Many local governments and utilities are struggling, but FWCU is resilient through the national emergency thanks in large part to its strategic plan. The plan sets the tone of the Utility’s culture, in which its people and community are top priorities. Water utilities were essential to fighting the coronavirus, and FWCU’s essential workers were front and center during the pandemic to ensure safe, clean water for the region. Because human capital and community engagement are strategic initiatives, they are engrained in the Utility’s culture. FWCU’s emphasis and investments in technology significantly improved operations, including providing enhanced customer access. Just before COVID-19, Fort Wayne installed an outdoor payment kiosk at City Hall, achieving one of its strategic goals of providing 24/7 access to customers to pay their bills even as the building closed due to the pandemic. Additionally, improved bandwidth allowed employees to work from home and Utility leadership observed improved customer service and support while remote. Automated work orders helped ensure services were provided safely.  The financial component of strategic plan that BTMA helped develop to ensure affordability and cost management was critical to Fort Wayne in facing unforeseen disruption, including the pandemic. The Utility instituted a forward-looking financial strategy with multiyear rate plans and capital improvement plans that enabled them to be resilient during economic setbacks. Regionalization efforts has allowed FWCU to continue to diversify their rate base, so they are not overly dependent on certain industries or customer classifications. Diversifying rate structures and better aligning fixed and variable costs have also contributed to the Utility’s resiliency. Fort Wayne also established non-traditional revenue sources, including providing services to other utilities and on-call field operation services to surrounding jurisdictions as well as generating methane and leveraging their robust asset management plan. FWCU’s commitment to all six strategic initiatives positioned the Utility, a nationally recognized Utility of Excellence, and Fort Wayne City to keep operations going and ensure its communities have access to water during an unprecedented and challenging time.  The Utility has won several regional and national awards, most recently including the American Water Works Association (AWWA) and Environmental Protection Agency (EPA) Partnership in Safe Water Treatment and Partnership in Safe Water Distribution System Directors Awards and the Indiana Water Environment Association (IWEA) Excellence in Safety Award. For more information, or to learn how Baker Tilly's public sector team can collaborate to assist your utility, contact our team. 

The utility's commitment to its strategic plan positioned FWCU as a nationally recognized Utility of Excellence.

Public Sector Advisory

Strategic Growth Planning & Execution

Long-term strategic planning: Fort Wayne City Utilities’ story of resilience

The American Society of Civil Engineers, in partnership with the Value of Water Campaign of the US Water Alliance, has estimated that the annual costs of the continuing pattern of underinvestment in the drinking water and wastewater systems in the United States will rise from an estimated $2 billion in 2019 to $14 billion by the year 2039. That is a seven-fold increase over 20 years[1]. The same report concluded that lagging federal investment in the nation’s water infrastructure is placing added pressure on state and local governments to act and that a failure to act could lead to a cumulative gross domestic product decline of $2.9 trillion by 2039 and a $7.7 billion rise in cumulative healthcare costs over the same period.  For virtually all local governments, the costs of replacing and upgrading utility assets demands a significant and continuing investment, often resulting in higher user fees and charges. Historically, many of these essential projects have been financed with long-term debt funding as federal and state grants to help offset the local share of these projects have been limited. Well before the COVID-19 pandemic, water and sewer utilities were facing a number of challenges, including aging infrastructure creating a need for asset renewal and replacement, increased regulatory requirements, the impacts of climate change, a growing emphasis on protecting our environment, limited water supply and others. Interwoven in all of these challenges has been the impact on affordability of utility services resulting from them. Fortunately, some help may be on the way. Local governments have been allocated $130.2 billion under the provisions of the American Rescue Plan Act (ARP). Eligible uses of these funds include water, sewer and broadband infrastructure, among others. Due to the overall impact on local communities and the myriad economic, health and other quality of life benefits infrastructure improvements can produce, such projects will likely become top contenders as local governments develop their plans for the use of ARP funds.  Municipal leaders should consider the adoption of an inclusive and analytical process for setting infrastructure spending priorities and in determining whether to spend their ARP funds on utility infrastructure or other eligible local needs or opportunities to maximize grant funding. One such technique could be the development of a “heat map” of various evaluative criteria, customized to the policy priorities of each community, as illustrated below. Using a weighted scoring model with defined evaluative criteria and a facilitated ranking process, decision makers can efficiently evaluate the strengths and weaknesses of each infrastructure project under consideration. The heat map reveals the relative strengths and weaknesses of each project, leading to more reliable, repeatable and equitable priority-setting.  The evaluation criteria included in the above example include: ARP eligibility – the degree to which the specific project conforms to the federal eligibility guidelines for infrastructure projects Environmental impact – the relative positive benefits on the natural environment that the project will produce Regulatory compliance – the extent to which the project addresses regulatory imperatives, consent decree requirements, etc. Improved access – the degree to which the project improves citizen access to utility services in terms of both availability and cost Customer impact – the number of utility customers who will realize a direct and/or indirect benefit from the project Economic impact – the significance of the project’s expected impact on the community’s ability to attract, retain and expand its economic base through new businesses Green infrastructure – the level of overall contribution of the project to the community’s “green” programs and initiatives Climate impact – the relative level of positive contribution to the mitigation of the effects of climate change Public health benefit – the degree of public health benefits or the mitigation of public health risks Cybersecurity enhancement – the comparative reduction in the risk of security breaches to the utility’s technology systems Financial sustainability – the degree to which the project enhances the long-term financial stability of the utility Community support – the degree of public support for the project A well-designed, analytically-supported decision process and strategic plan can help utilities determine how to best apply their ARP funding to help offset the local costs for critical infrastructure investments and help to minimize utility rate increases. Contact Baker Tilly’s public sector specialists to further explore how your utility can maximize the benefits you realize from the ARP relief funding.

A well-designed decision process and strategic plan can help utilities determine how to best apply ARP funding to support infrastructure needs.

Public Sector Performance Optimization

Prioritizing utility infrastructure spending: an analytical approach

Baker Tilly recently presented a virtual roundtable series with Accelerate Indiana Municipalities (Aim) about CARES Act funding for local governments in Indiana and the importance of long-term financial and capital planning in the face of COVID-19. View the recording below. Video CARES Act funding, financial plans and what to expect in 2021 and beyond The session focused on the financial impacts local governments in Indiana are facing as a result of the COVID-19 pandemic. Specifically, we discussed:  Coronavirus Aid, Relief, and Economic Security (CARES) Act funding 
- Updates on requesting and receiving funds
- Accounting for CARES Act dollars Options for utilizing CARES Act money
- Today’s wants and needs vs. tomorrow’s cash flow and reserves Financial obstacles on the horizon
- 2022 local income tax (LIT) impacts 
- Potential impact to other revenue sources 
- COVID-19 economic impacts in 2021 and beyond
- Tax base/circuit breaker/economic development considerations How the various impacts fit together into your community’s long-term financial and capital plan
- Financial plans are evergreen, especially in today’s environment
- Accurate financial planning and future scenario considerations have never been more important Presenters and subject matter specialists Paige E. Sansone, CPA, Partner Eric J. Walsh, CPA, Partner Brian Colton, Principal Susan Cowen, Manager

Learn how to access and leverage CARES Act funding and prepare for future financial and capital planning. 

Tribes

State & Local Government Coronavirus Resources

CARES Act funding, financial plans and what to expect in 2021 and beyond

Welcome to CommuniTIES, the Baker Tilly podcast series where we speak with public sector leaders from across the firm about practical guidance to help governmental entities protect and enhance their value.  In this episode, we sit down virtually with CFO of Fort Wayne City Utilities, Justin Brugger, to discuss how the city’s successful approach to strategic planning and financial management has allowed the utility to remain resilient amid the COVID-19 pandemic.  A focus on human capital, technology, affordability and cost management, budgeting, rate planning and economic development has helped Fort Wayne continue to operative effectively during the pandemic and achieve the utility’s mission. Listen to our podcast to gain insight into Fort Wayne’s leading practices that have contributed to the city’s success. 
Meet this episode's guest speaker Justin Brugger, CFO, Fort Wayne City Utilities
Resource center Baker Tilly understands public sector organizations and how an unplanned event such as the COVID-19 outbreak can affect your entity and community. Visit our  Coronavirus Resource Center for additional tools and advice.
For more information on this topic, or to learn how Baker Tilly public sector specialists can help,  contact our team.

Fort Wayne City Utilities joins our CommuniTIES podcast to discuss their successful approach to remaining resilient during the COVID-19 pandemic. 

Coronavirus Recovery & Growth Resources

CommuniTIES: remaining resilient amid the pandemic: a utility’s successful approach to strategic and financial planning

Little did anyone know while crafting our budgets last summer and fall what the first quarter of 2020 would bring.  Our new reality consists of questions and uncertainty that can turn well-laid plans upside down.  The common question many are asking is “How should we proceed with planned spending this year and what should we consider for next year’s budget?” It’s safe to say that school and business closures will result in revenue shortfalls.  Although the extent and timing of the shortfalls are unknown, we need to develop a plan to absorb revenue loss.  Declining revenue combined with public expectations is a difficult challenge to face. Avoid an initial knee-jerk reaction to cut broadly across departments or deplete fund reserves. The fluidity of the current situation and the unknown fall-out in the coming months or years begs a more managerial approach to financial decision making.   First, consider the short-term.  The suspension of late payment penalties for May tax bills will likely result in a June property tax settlement significantly lower than anticipated prior to the pandemic.  Monthly cash flows will help you determine if temporary loans are necessary to bridge funding gaps.  Borrowing externally can take 30 days or more, so determine sooner rather than later if cash flow deficits are eminent.   Next, focus on the long-term with an analysis of existing strategic or capital spending plans.  Include departments and stakeholders in the process and reevaluate and refine what is most important to your community.  Rank priorities and examine the trade-offs, both positive and negative, of delaying action.  Look not only at the near-term implications of delaying a priority, but also the long-term effects.  For example, deferring critical maintenance projects may result in higher costs in the long run.  Or, choosing to deplete reserves or rainy day funds this year could leave nothing for next year to cover continued revenue shortfalls.   When developing a budget strategy consider constraints, context and consequences (the three c’s): Constraints – Are budgeted disbursements equal to receipts to avoid deficit spending?  Are there legal requirements or restrictions on uses for certain funds? Do you have policies or ordinances that require certain reserve levels?   Context – What is the historical level of importance of a project? Why is it still important?  What are the ramifications to the community if a project is suspended?  What relevant information is available to make decisions such as revised revenue estimates or guidance from State agencies? Consequences – What will happen if an issue is not addressed or a position is not funded? Will it cost more to fix in the future and will a cascade effect bring about other future spending in related areas?              The average length of a recession is ten to fifteen months.  Be proactive to get ahead of revenue shortfalls.  Avoid drastic changes in the short-term, identify potential cash flow deficits over the upcoming months,  and develop a long-term financial plan.  Strive to make decisions to create a softer landing with a focus on future sustainability. If you need assistance with cash flows analysis or long-term financial planning, please contact our team.

Budgeting during uncertain times

When state and local governments need guidance, they rely on Baker Tilly for financial, budget and capital improvement planning and analysis. We provide proactive, forward-looking financial management solutions to the public sector.

Count on Baker Tilly to help you plan and manage your government’s financial future

Public sector entities face unique challenges, whether it’s economic distress, budgetary restrictions, financial hardships or shifting market conditions. When planned strategically, these challenges can be opportunities. 

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Stay up to date on American Rescue Plan (ARP) news and guidance for state and local governments.

American Rescue Plan resources for public sector

The common question many are asking is “How should we proceed with planned spending this year and what should we consider for next year’s budget?”

Fort Wayne City Utilities joins our CommuniTIES podcast to discuss their successful approach to remaining resilient during the COVID-19 pandemic.

CommuniTIES: remaining resilient amid the pandemic: a utility’s successful approach to strategic and financial planning 

Helping public leaders succeed is not just our livelihood, it is our passion.

Baker Tilly’s public sector specialists provide comprehensive financial management solutions to governments, utilities and schools.

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Baker Tilly’s state and local government practice serves a wide variety of governmental entities on their accounting, assurance and advisory needs.

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Baker Tilly’s utilities team works with clients to confront complex challenges that collide with demands to provide quality constituent services and increase efficiency and effectiveness.

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Jodi Dobson is the firm's public sector technical leader and a partner on the energy and utilities team.

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Public Sector Financial Management Advisory

Slow down to speed up: building your strategic funding plan

Long-term strategic planning: Fort Wayne City Utilities’ story of resilience

Prioritizing utility infrastructure spending: an analytical approach

CARES Act funding, financial plans and what to expect in 2021 and beyond

CommuniTIES: remaining resilient amid the pandemic: a utility’s successful approach to strategic and financial planning

Budgeting during uncertain times

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Jodi Dobson

Paige E. Sansone

When state and local governments need guidance, they rely on Baker Tilly for financial, budget and capital improvement planning and analysis. We provide proactive, forward-looking financial management solutions to the public sector.

Financial management solutions

Count on Baker Tilly to help you plan and manage your government’s financial future

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American Rescue Plan resources for public sector

Budgeting during uncertain times

CARES Act funding, financial plans and what to expect in 2021 and beyond

CommuniTIES: remaining resilient amid the pandemic: a utility’s successful approach to strategic and financial planning

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