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Are you ready for budget season? Has the city council defined and cemented its priorities? Has city staff started framing the limitations and priorities necessary to fit within the budget? Are you wishing you could go the route of the federal government and just print some money?
One of our “isms” at Tripepi Smith is “Excel Can’t Lie.” While artful language can help clarify a philosophy or frame a challenge, one plus one still equals two in Excel. You can’t escape math. You can’t escape the pragmatic reality that only so much revenue will enter an agency, and that creates limits on what can be done.
The complexities of finance and the Government Accounting Standards Board rules only add to the difficulties of the budget season. Truly understanding the budget and all its nuances is demanding work, and even for the most engaged council member or seasoned director, it can be confusing. Now imagine how the average resident feels.
Because budgets fund programs and facilities, big decisions are wrapped into the budget process. Is that dog park going to happen in 2025 or not? Will the pickleball players be happy that we are only building two courts and not six? Do we need to increase police officer compensation by $15,000 per officer to successfully recruit for the open positions? How will we budget around the fire contract increasing by 13% in the next fiscal year? How will we staff our community development operation to meet new state housing mandates? And, if we do these things, what will not get funded?
So many questions. So many priorities. So much opportunity for public confusion and disappointment.
Bringing your residents along on the budget journey is an important aspect of the budget process. Explaining complexities, showing the math and being transparent are all healthy steps for support of the communities we serve. Some of our clients have found two key documents to be helpful: budget-at-a-glance (BAAG) summaries and financial primers. The BAAG is an effective tool to remind everyone where the money goes and what priorities are being funded. They are often published in September after the dust has settled on the budget. The financial primer, on the other hand, typically is published in the early spring (about now), and it provides forward-looking statements and offers high-level information on revenue sources, projects and major cost centers. The financial primer is designed to show the public what the city is contemplating as it enters the budget season and is intended to train residents to evaluate their requests in the context of the city budget. Both documents increase transparency and build trust.
Make sure you are telling your financial story this budget season. Doing so can yield dividends when future budget cuts happen or when revenue measures are being considered.
Enjoy the Math,
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