Many governmental units, both large and small, are facing financial challenges due to rising costs, declining revenues, lack of economic growth and more recently, the uncertainty of the COVID-19 impacts. All of these factors are changing the way we budget. Taking a short-term “fill-in-the-forms” approach to budgeting is no longer sufficient to the need. There is a greater urgency to extend planning horizons beyond one year and develop long-term cash flow projections to identify potential budget deficits and cash flow shortages before they occur.
Developing a three-to-five year comprehensive financial plan can provide your community with a financial road map to the future. The plan can be used as a tool to map out priorities and estimate the impact of increasing costs, changing revenue streams and legislative mandates. It can define your government’s financial position, predict receipts and disbursements and identify potential funding gaps or investment opportunities. A comprehensive financial plan can provide the framework for developing financing plans for capital projects and better manage debt obligations.
For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team.
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and wholly-owned subsidiary of Baker Tilly Virchow Krause, LLP, an accounting firm.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax advice, if any, contained in this communication was not intended or written to be used by any taxpayer for the purpose of avoiding penalties.