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ATTACHMENT 3 G F O A B e s t P r a c t i c e s o n B u d g e t i n g 4 : 3 0 - 5 : 2 5 P M N o v e m b e r 1 3 , 2 0 1 4 ( G F O A T ) J o h n F i s h b e i n , S e n i o r P r o g r a m M a n a g e r , T e c h n i c a l S e r v i c e s C e n t e r , G F O A G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N M a j o r C a t e g o r i e s • F i s c a l P o l i c y • L i n k i n g t h e B u d g e t t o O r g a n i z a t i o n G o a l s a n d P e r f o r m a n c e • T h e B u d g e t P r o c e s s a n d T e c h n i q u e s • E l e m e n t s o f t h e O p e r a t i n g B u d g e t D o c u m e n t 1 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N F i s c a l P o l i c y • A d o p t i n g F i n a n c i a l P o l i c i e s • D e t e r m i n i n g t h e A p p r o p r i a t e L e v e l o f U n r e s t r i c t e d F u n d B a l a n c e i n t h e G e n e r a l F u n d • R e p l e n i s h i n g G e n e r a l F u n d B a l a n c e • D e t e r m i n i n g t h e A p p r o p r i a t e L e v e l s o f W o r k i n g C a p i t a l i n E n t e r p r i s e F u n d s • E s t a b l i s h i n g G o v e r n m e n t C h a r g e s a n d F e e s • E s t a b l i s h i n g a n E f f e c t i v e G r a n t s P o l i c y • C r e a t i n g a C o m p r e h e n s i v e R i s k M a n a g e m e n t P r o g r a m • A c h i e v i n g a S t r u c t u r a l l y B a l a n c e d B u d g e t • B u s i n e s s P r e p a r e d n e s s a n d C o n t i n u i t y G u i d e l i n e s • T h e P u b l i c F i n a n c e O f f i c e r ’ s R o l e i n F i s c a l S u s t a i n a b i l i t y • K e y I s s u e s i n S u c c e s s i o n P l a n n i n g • E n s u r i n g O t h e r P o s t E m p l o y m e n t B e n e f i t s ( O P E B ) S u s t a i n a b i l i t y • C o n s i d e r a t i o n s f o r P r e f u n d i n g O P E B O b l i g a t i o n s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N A d o p t i n g F i n a n c i a l P o l i c i e s ( 2 0 0 1 ) • U s e f u l a s f r a m e w o r k f o r a d d r e s s i n g p o l i c y i s s u e s • R e c o m m e n d a t i o n • S t a f f d e v e l o p • G o v e r n i n g b o a r d f o r m a l l y a d o p t s • S u m m a r i z e d i n b u d g e t d o c u m e n t • R e v i e w e d f o r c o n t i n u e d r e l e v a n c e / g a p s 2 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E s s e n t i a l P o l i c i e s H i g h l y A d v i s a b l e P o l i c i e s F u n d B a l a n c e a n d R e s e r v e s A c c o u n t i n g & F i n a n c i a l R e p o r t i n g O p e r a t i n g B u d g e t R e v e n u e s C a p i t a l B u d g e t i n g a n d P l a n n i n g I n t e r n a l C o n t r o l s D e b t M a n a g e m e n t E x p e n d i t u r e s L o n g - R a n g e F i n a n c i a l P l a n n i n g P u r c h a s i n g I n v e s t m e n t R i s k M a n a g e m e n t E c o n o m i c D e v e l o p m e n t R e l a t i v e I m p o r t a n c e o f F i n a n c i a l P o l i c y T y p e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N D e t e r m i n i n g t h e A p p r o p r i a t e L e v e l o f F u n d B a l a n c e i n t h e G e n e r a l F u n d ( 2 0 0 2 , 2 0 0 9 ) z F o c u s ȱ o n ȱ u n r e s t r i c t e d ȱ f u n d ȱ b a l a n c e C o m m i t t e d ȱ f u n d ȱ b a l a n c e A s s i g n e d ȱ f u n d ȱ b a l a n c e U n a s s i g n e d ȱ f u n d ȱ b a l a n c e z M i n i m u m ȱ l e v e l ȱ o f ȱ u n r e s t r i c t e d ȱ f u n d ȱ b a l a n c e T w o ȱ m o n t h s ȱ o f ȱ r e g u l a r ȱ r e v e n u e s ȱ o r ȱ r e g u l a r ȱ e x p e n d i t u r e s z E n v i r o n m e n t a l ȱ f a c t o r s ȱ t o ȱ b e ȱ c o n s i d e r e d ȱ P r e d i c t a b i l i t y ȱ o f ȱ r e v e n u e s V o l a t i l i t y ȱ o f ȱ e x p e n d i t u r e s A v a i l a b i l i t y ȱ o f ȱ o t h e r ȱ r e s o u r c e s C o m m i t m e n t s 3 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f W h e a t R i d g e , C O . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N R e p l e n i s h i n g G e n e r a l F u n d B a l a n c e ( 2 0 1 1 ) z P o l i c y c o n s i d e r a t i o n s D e f i n e t h e t i m e p e r i o d w i t h i n w h i c h a n d c o n t i n g e n c i e s f o r w h i c h f u n d b a l a n c e s w i l l b e u s e d . D e s c r i b e h o w t h e g o v e r n m e n t ’ s e x p e n d i t u r e l e v e l s w i l l b e a d j u s t e d t o m a t c h a n y n e w e c o n o m i c r e a l i t i e s . D e s c r i b e t h e t i m e p e r i o d o v e r w h i c h t h e c o m p o n e n t s o f f u n d b a l a n c e w i l l b e r e p l e n i s h e d a n d t h e m e a n s b y w h i c h t h e y w i l l b e r e p l e n i s h e d . z F a c t o r s i n f l u e n c i n g t h e r e p l e n i s h m e n t t i m e h o r i z o n T h e b u d g e t a r y r e a s o n s b e h i n d t h e f u n d b a l a n c e t a r g e t s . R e c o v e r i n g f r o m a n e x t r e m e e v e n t . P o l i t i c a l c o n t i n u i t y . F i n a n c i a l p l a n n i n g t i m e h o r i z o n s . L o n g - t e r m f o r e c a s t s a n d e c o n o m i c c o n d i t i o n s . M i l e s t o n e s f o r g r a d u a l r e p l e n i s h m e n t . E x t e r n a l f i n a n c i n g e x p e c t a t i o n s . 4 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N V I I . M I N I M U M F U N D B A L A N C E R E S E R V E S T h e C i t y w i l l b u d g e t t a r g e t m i n i m u m c a s h f u n d b a l a n c e s f o r v a r i o u s o p e r a t i n g f u n d s t o p r o v i d e r e s e r v e s f o r u n f o r e s e e n e m e r g e n c i e s o r r e v e n u e s h o r t f a l l s a n d t o e l i m i n a t e t h e n e e d f o r s h o r t - t e r m b o r r o w i n g f o r c a s h f l o w n e e d s . C i t y o f S i d n e y , O H . I t i s t h e p o l i c y o f t h e C i t y o f S i d n e y t o m e e t o r e x c e e d t h e s e t a r g e t s i n e a c h b u d g e t a n d F i v e Y e a r F i n a n c i a l P l a n . T h e f o l l o w i n g t a r g e t c a s h f u n d b a l a n c e f o r t h e G e n e r a l F u n d i s 2 0 % o f a n n u a l e x p e n d i t u r e s . W e r e c o g n i z e t h a t u n f o r e s e e n e v e n t s m a y c a u s e s h o r t - t e r m b r e a c h e s o f t h e s e f u n d b a l a n c e r e s e r v e s . H o w e v e r , i f s u c h a b r e a c h o c c u r s , o r i s e x p e c t e d t o o c c u r w i t h i n t h e f i v e - y e a r p l a n n i n g c y c l e , t h e b u d g e t b a l a n c i n g s t r a t e g i e s w i l l b e i n v o k e d t o d e t e r m i n e c o r r e c t i v e a c t i o n s . W h e n n e c e s s a r y , t h e f o l l o w i n g b u d g e t - b a l a n c i n g s t r a t e g i e s w i l l b e u s e d i n o r d e r o f p r i o r i t y . 1 ) r e d u c e e x p e n d i t u r e s t h r o u g h i m p r o v e d p r o d u c t i v i t y ; 2 ) s h i f t e x p e n s e t o o t h e r p a r t i e s ; 3 ) c r e a t e n e w s e r v i c e f e e s o r i n c r e a s e e x i s t i n g f e e s ; 4 ) s e e k t a x r a t e i n c r e a s e s ; 5 ) r e d u c e o r e l i m i n a t e s e r v i c e s . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N D e t e r m i n i n g t h e A p p r o p r i a t e L e v e l s o f W o r k i n g C a p i t a l i n E n t e r p r i s e F u n d s ( 2 0 1 1 ) z G o v e r n m e n t s s h o u l d u s e w o r k i n g c a p i t a l a s t h e m e a s u r e o f a v a i l a b l e m a r g i n o r b u f f e r i n e n t e r p r i s e f u n d s . W o r k i n g c a p i t a l i s d e f i n e d a s c u r r e n t a s s e t s m i n u s c u r r e n t l i a b i l i t i e s . A n a p p r o p r i a t e a l l o w a n c e f o r u n c o l l e c t i b l e s s h o u l d b e e s t a b l i s h e d . T h e a m o u n t o f i n v e n t o r i e s a n d p r e p a i d s i n c l u d e d i n c u r r e n t a s s e t s s h o u l d b e a r e a l i s t i c e s t i m a t e o f t h e a m o u n t t h a t w i l l b e c o n s u m e d i n o n e y e a r . T a r g e t f o r w o r k i n g c a p i t a l s h o u l d b e n o b e l e s s t h a n f o r t y - f i v e ( 4 5 ) d a y s w o r t h o f a n n u a l o p e r a t i n g e x p e n s e s . z C o n s i d e r a t i o n s o r f a c t o r s i n s e t t i n g a w o r k i n g c a p i t a l t a r g e t S u p p o r t f r o m g e n e r a l g o v e r n m e n t . T r a n s f e r s o u t . C u s t o m e r c o n c e n t r a t i o n . D e m a n d f o r s e r v i c e s . C o n t r o l o v e r r a t e s a n d r e v e n u e s . A s s e t a g e a n d c o n d i t i o n . V o l a t i l i t y o f e x p e n s e s . 5 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E s t a b l i s h i n g G o v e r n m e n t C h a r g e s a n d F e e s ( 1 9 9 6 ) z A d o p t f o r m a l p o l i c y ( p u b l i c ) F a c t o r s t o b e t a k e n i n t o a c c o u n t i n p r i c i n g I n t e n t t o r e c o v e r f u l l c o s t ? C i r c u m s t a n c e s w h e r e m o r e o r l e s s t h a n 1 0 0 % r e c o v e r y p e r m i t t e d R a t i o n a l e f o r n o t r e c o v e r i n g f u l l c o s t T r y a n d k e e p u p w i t h i n f l a t i o n z F u l l c o s t s h o u l d b e c a l c u l a t e d t o p r o v i d e a b a s i s f o r s e t t i n g f e e s o r c h a r g e s z R e v i e w a n d u p d a t e r e g u l a r l y G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P i n e l l a s C o u n t y , F L . 6 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E s t a b l i s h i n g a n E f f e c t i v e G r a n t s P o l i c y ( 2 0 1 3 ) • G r a n t s a r e a n a t t r a c t i v e f o r m o f f u n d i n g f o r g o v e r n m e n t s a n d f r e q u e n t l y c o m e w i t h s p e c i a l r e q u i r e m e n t s t h a t t h e r e c i p i e n t m u s t f o l l o w . A n e f f e c t i v e g r a n t s p o l i c y p r o v i d e s g u i d a n c e t o s t a f f a s i t r e l a t e s t o a s s o c i a t e d p r o c e s s e s a n d p r o c e d u r e s i n o r d e r t o m a x i m i z e t h e b e n e f i t s a n d m i n i m i z e t h e r i s k s . • G o v e r n m e n t s n e e d t o d e v e l o p a f o r m a l g r a n t s p o l i c y t h a t a d d r e s s s t e p s t o t a k e p r i o r t o a p p l y i n g f o r o r a c c e p t i n g g r a n t s , a n d t h a t t h e p o l i c y a t m i n i m u m c o n t a i n t h e f o l l o w i n g c o m p o n e n t s : • G r a n t s i d e n t i f i c a t i o n a n d a p p l i c a t i o n . • S t r a t e g i c a l i g n m e n t . • F u n d i n g a n a l y s i s . • E v a l u a t i o n p r i o r t o r e n e w a l o r g r a n t c o n t i n u a t i o n . • A d m i n i s t r a t i v e a n d o p e r a t i o n a l s u p p o r t . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C h a r l e s C o u n t y , M D . C o u n t y G r a n t P o l i c y I t i s t h e p u r p o s e o f t h i s p o l i c y t o s u p p o r t c r e a t i v i t y a n d i n n o v a t i o n i n i d e n t i f y i n g a n d a d d r e s s i n g p r o b l e m s t h a t c a n n o t b e r e s o l v e d w i t h e x i s t i n g r e s o u r c e s , b u t m i g h t b e s u i t a b l e a r e a s f o r s e e k i n g g r a n t f u n d s . I t i s i m p o r t a n t t o e m p h a s i z e t h e n e e d f o r a d e q u a t e p l a n n i n g a n d q u a l i t y c o n t r o l i n a l l a c t i v i t i e s r e l a t e d t o t h e a d m i n i s t r a t i o n o f g r a n t s t h a t i n v o l v e r e s o u r c e s a n d p e r s o n n e l o f C h a r l e s C o u n t y G o v e r n m e n t ( C o u n t y ) P r o j e c t s f u n d e d i n w h o l e o r i n p a r t w i t h g r a n t m o n e y a r e n o t i n d e p e n d e n t o f C o u n t y o p e r a t i o n s a n d s h o u l d n o t b e c r e a t e d s i m p l y i n r e a c t i o n t o a n o t i c e o f a v a i l a b i l i t y o f f u n d s , w h a t e v e r t h e s o u r c e . I t i s t h e p r a c t i c e o f t h e C o u n t y t o b e p r o a c t i v e i n i t s p u r s u i t o f s u p p l e m e n t a l f u n d i n g s o u r c e s . C o u n t y p e r s o n n e l s h o u l d i d e n t i f y p r o b l e m s t h a t c a n n o t b e s o l v e d w i t h c u r r e n t r e s o u r c e s , e n g a g e i n b r o a d - b a s e d p l a n n i n g t o a d d r e s s t h o s e p r o b l e m s , a n d c a r e f u l l y c o n s i d e r w h e t h e r g r a n t s a r e a n a p p r o p r i a t e r e s o u r c e t o p u r s u e , g i v e n t h e i r t e m p o r a r y n a t u r e . F o r t h e p u r p o s e o f t h e p o l i c y , a g r a n t i s a n a w a r d o f f i n a n c i a l a s s i s t a n c e f o r w h i c h t h e C o u n t y , o r a d e p a r t m e n t t h e r e o f , h a s m a d e a p p l i c a t i o n t o a p u b l i c o r p r i v a t e e n t i t y a n d i s s u b j e c t t o r e q u i r e m e n t s i m p o s e d b y t h e a w a r d i n g a g e n c y . T h e F i s c a l a n d A d m i n i s t r a t i v e S e r v i c e s D e p a r t m e n t w i l l b e t h e f i s c a l a g e n t t h r o u g h w h i c h a l l a c c o u n t s m u s t b e e s t a b l i s h e d a n d a l l t r a n s a c t i o n s p r o c e s s e d f o r a l l g r a n t s w h e r e a C o u n t y D e p a r t m e n t i s t h e a p p l i c a n t a n d C o u n t y p e r s o n n e l a r e t h e p r i m a r y p a r t i c i p a n t s i n t h e p l a n n e d p r o j e c t . 7 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C r e a t i n g a C o m p r e h e n s i v e R i s k M a n a g e m e n t P r o g r a m ( 2 0 0 9 ) z F o l l o w i n g s t e p s s h o u l d b e i n c l u d e d i n a n e f f e c t i v e r i s k m a n a g e m e n t p r o g r a m : R i s k i d e n t i f i c a t i o n R i s k e v a l u a t i o n R i s k t r e a t m e n t R i s k m a n a g e m e n t i m p l e m e n t a t i o n R i s k p r o g r a m r e v i e w z R i s k i d e n t i f i c a t i o n P h y s i c a l e n v i r o n m e n t ( n a t u r a l o r m a n - m a d e d i s a s t e r s a n d i n f r a s t r u c t u r e ) L e g a l e n v i r o n m e n t ( l a w s a n d l e g a l p r e c e d e n t s ) O p e r a t i o n a l e n v i r o n m e n t ( d a y - t o - d a y a c t i v i t i e s a n d a c t i o n s w i t h i n t h e l o c a l g o v e r n m e n t , i n c l u d i n g s e r v i c e s p r o v i d e d a n d w o r k f o r c e d e m o g r a p h i c s ) P o l i t i c a l e n v i r o n m e n t ( l e g i s l a t i v e a c t i v i t y , e l e c t i o n s ) z R i s k e v a l u a t i o n z R i s k t r e a t m e n t z R i s k m a n a g e m e n t i m p l e m e n t a t i o n a n d r e v i e w G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f B l o o m i n g t o n , M N . 8 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N S t r u c t u r a l l y B a l a n c e d B u d g e t P o l i c y ( 2 0 1 3 ) • M o s t s t a t e a n d l o c a l g o v e r n m e n t s a r e s u b j e c t t o a r e q u i r e m e n t t o p a s s a b a l a n c e d b u d g e t . H o w e v e r , a b u d g e t t h a t m a y f i t t h e s t a t u t o r y d e f i n i t i o n o f a “ b a l a n c e d b u d g e t ” m a y n o t , i n f a c t , b e f i n a n c i a l l y s u s t a i n a b l e . A g o v e r n m e n t n e e d s t o m a k e s u r e t h a t i t i s a w a r e o f t h e d i s t i n c t i o n b e t w e e n s a t i s f y i n g t h e s t a t u t o r y d e f i n i t i o n a n d a c h i e v i n g a t r u e s t r u c t u r a l l y b a l a n c e d b u d g e t . • T h e p o l i c y s h o u l d i n c l u d e p a r a m e t e r s f o r a c h i e v i n g a n d m a i n t a i n i n g s t r u c t u r a l b a l a n c e w h e r e r e c u r r i n g r e v e n u e s a r e e q u a l t o r e c u r r i n g e x p e n d i t u r e s i n t h e a d o p t e d b u d g e t . • T h e g o v e r n m e n t s h o u l d i d e n t i f y k e y i t e m s r e l a t e d t o s t r u c t u r a l b a l a n c e . T h e s e i n c l u d e : r e c u r r i n g a n d n o n - r e c u r r i n g r e v e n u e s , r e c u r r i n g a n d n o n - r e c u r r i n g e x p e n d i t u r e s , a n d r e s e r v e s . • W i t h t h e f o r g o i n g t e r m s d e f i n e d , a g o v e r n m e n t s h o u l d a d o p t a f o r m a l p o l i c y c a l l i n g f o r s t r u c t u r a l b a l a n c e o f t h e b u d g e t . T h e p o l i c y s h o u l d c a l l f o r t h e b u d g e t t o b e s t r u c t u r a l l y b a l a n c e d , w h e r e r e c u r r i n g r e v e n u e s e q u a l o r e x c e e d r e c u r r i n g e x p e n d i t u r e s . T h e p o l i c y s h o u l d a l s o c a l l f o r t h e b u d g e t p r e s e n t a t i o n t o i d e n t i f y h o w r e c u r r i n g r e v e n u e s a r e a l i g n e d w i t h o r n o t a l i g n e d w i t h r e c u r r i n g e x p e n d i t u r e s . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N B u s i n e s s P r e p a r e d n e s s a n d C o n t i n u i t y G u i d e l i n e s ( 2 0 0 5 ) z D e v e l o p , t e s t , a n d m a i n t a i n a p l a n t o c o n t i n u e b a s i c b u s i n e s s o p e r a t i o n s z A s s e s s o w n u n i q u e r i s k s z S t r a t e g y t o m i t i g a t e r i s k s a n d c o n t r o l c o s t s E x t e r n a l p l a n n i n g r e s o u r c e s • D i s a s t e r a n d e m e r g e n c y r e c o v e r y p l a n a s s e s s m e n t • D i s a s t e r a n d e m e r g e n c y r e c o v e r y p l a n t e s t i n g • F E M A g u i d e l i n e s O t h e r p l a n n i n g c o n s i d e r a t i o n s • E m e r g e n c y r e s p o n s e p l a n c o m p l i a n c e ( O S H A , E P A ) • R i s k m a n a g e m e n t ( i n s u r a n c e c o v e r a g e ) • A d m i n i s t r a t i v e s u p p o r t f u n c t i o n s ( c o n t a c t i n f o r m a t i o n f o r a l l m e m b e r s o f t h e f i n a n c e t e a m ) • O u t s o u r c e d / r e c o v e r y s e r v i c e s ( a b i l i t y t o o v e r c o m e d i s r u p t i o n t h e m s e l v e s ) 9 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N T h e P u b l i c F i n a n c e O f f i c e r s R o l e i n F i s c a l S u s t a i n a b i l i t y ( 2 0 0 2 , 2 0 1 2 ) z B a l a n c e n e e d e d ( “ t r i p l e b o t t o m l i n e ” ) E c o n o m y E n v i r o n m e n t S o c i a l E q u i t y z C a t e g o r i e s o f s p e c i f i c r e p r e s e n t a t i o n s D e f i n e s u s t a i n a b i l i t y R e p o r t i n g A n a l y z e r e t u r n o n i n v e s t m e n t I n t e g r a t e s u s t a i n a b i l i t y g o a l s i n t o p l a n n i n g a n d b u d g e t i n g G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f E l m h u r s t , I L . 1 0 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N K e y I s s u e s i n S u c c e s s i o n P l a n n i n g ( 2 0 1 1 ) • D e v e l o p a n i n t e g r a t e d a p p r o a c h t o s u c c e s s i o n m a n a g e m e n t . • C o n t i n u a l l y a s s e s s p o t e n t i a l e m p l o y e e t u r n o v e r . • P r o v i d e a f o r m a l , w r i t t e n s u c c e s s i o n p l a n a s a f r a m e w o r k f o r s u c c e s s i o n i n i t i a t i v e s . • D e v e l o p w r i t t e n p o l i c i e s a n d p r o c e d u r e s t o f a c i l i t a t e k n o w l e d g e t r a n s f e r . • D e v e l o p m e n t o f l e a d e r s h i p s k i l l s s h o u l d b e a k e y c o m p o n e n t o f a n y s u c c e s s i o n p l a n n i n g i n i t i a t i v e . • E n c o u r a g e m e n t o f p e r s o n a l p r o f e s s i o n a l d e v e l o p m e n t a c t i v i t i e s s h o u l d b e a k e y p a r t o f t h e s u c c e s s i o n p l a n n i n g e f f o r t . • D e s i g n o f b e t t e r r e c r u i t m e n t a n d r e t e n t i o n p r a c t i c e s m a y a i d i n t h e s u c c e s s i o n p r o c e s s . • C o n s i d e r a t i o n m u s t b e g i v e n t o c o l l e c t i v e b a r g a i n i n g a g r e e m e n t s a n d h o w t h o s e a g r e e m e n t s f i t i n w i t h t h e o v e r a l l s u c c e s s i o n p l a n . • C o n s i d e r n o n - t r a d i t i o n a l h i r i n g s t r a t e g i e s . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E n s u r i n g O t h e r P o s t e m p l o y m e n t B e n e f i t s ( O P E B ) S u s t a i n a b i l i t y ( 2 0 0 7 , 2 0 1 2 ) » E m p l o y e e c o m p e n s a t i o n p a c k a g e s f o r a c t i v e w o r k e r s o f t e n i n c l u d e h e a l t h c a r e a n d s i m i l a r b e n e f i t s f o l l o w i n g t h e c o m p l e t i o n o f a c t i v e s e r v i c e . » S u c h b e n e f i t s a r e d e s c r i b e d a s o t h e r p o s t e m p l o y m e n t b e n e f i t s ( O P E B ) t o d i s t i n g u i s h t h e m f r o m p e n s i o n s . » F o r m a n y y e a r s , e m p l o y e r s h a v e b e e n r e q u i r e d t o r e c o g n i z e e x p e n s e s f o r t h e c o s t o f p e n s i o n b e n e f i t s a s t h o s e b e n e f i t s a r e e a r n e d b y e m p l o y e e s d u r i n g t h e i r a c t i v e s e r v i c e l i f e . T h e G o v e r n m e n t a l A c c o u n t i n g S t a n d a r d s B o a r d ( G A S B ) h a s e x t e n d e d t h i s s a m e r e q u i r e m e n t t o O P E B . » T h e r e a l i s s u e i s m e e t i n g t h e b u d g e t a r y a n d f u n d i n g c h a l l e n g e t h a t t h o s e a c c o u n t i n g s t a n d a r d s h i g h l i g h t . » G o v e r n m e n t s s h o u l d d e v e l o p a d e l i b e r a t i v e p r o c e s s t o e n s u r e t h e s u s t a i n a b i l i t y ( i . e . , b e n e f i t s a r e , a n d r e a s o n a b l y m a y b e e x p e c t e d t o r e m a i n , a f f o r d a b l e t o t h e g o v e r n m e n t , c o m p e t i t i v e a n d s u f f i c i e n t t o m e e t e m p l o y e e n e e d s ) o f a n y O P E B t h e y o f f e r t o t h e i r e m p l o y e e s . » E v a l u a t e a n d d e s i g n b e n e f i t s t o e n s u r e t h e y a r e s u s t a i n a b l e . 1 1 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C o n s i d e r a t i o n s f o r P r e f u n d i n g O P E B O b l i g a t i o n s ( 2 0 0 8 ) » T h e f i n a n c i n g o f p o s t e m p l o y m e n t b e n e f i t s a s t h e y a r e e a r n e d ( i . e . , p r e f u n d i n g v . p a y - a s - y o u - g o f u n d i n g ) o f f e r s s i g n i f i c a n t a d v a n t a g e s f r o m t h e v a n t a g e p o i n t o f e q u i t y a n d s u s t a i n a b i l i t y . T h e e a r n i n g s o n t h e r e s o u r c e s t h u s a c c u m u l a t e d w i l l l o w e r t h e a m o u n t t h a t u l t i m a t e l y m u s t b e b u d g e t e d b y t h e e m p l o y e r . » G F O A r e c o m m e n d s t h a t O P E B i n v o l v i n g e x p l i c i t b e n e f i t p a y m e n t s b e p r e f u n d e d o n a n a c t u a r i a l b a s i s . » T h e p r e f u n d i n g o f O P E B r e s u l t i n g f r o m a n i m p l i c i t r a t e s u b s i d y a l s o i s d e s i r a b l e . P r e f u n d i n g p r o v i d e s e q u i t y a m o n g g e n e r a t i o n s o f t a x p a y e r s , l e v e l s a n n u a l r e t i r e e h e a l t h c a r e c o s t s a n d h e l p s e n s u r e s u s t a i n a b i l i t y o f t h e b e n e f i t . » I f a g o v e r n m e n t d o e s d e c i d e t o p r e f u n d l e s s t h a n t h e A R C e a c h y e a r , t h e l e v e l o f f u n d i n g s e l e c t e d s h o u l d b e e x p l a i n e d a n d d o c u m e n t e d f o l l o w i n g a p p r o p r i a t e c o n s u l t a t i o n w i t h l e g a l c o u n s e l a n d a c t u a r i e s . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f G r a n t s P a s s , O R . 1 2 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N L i n k i n g t h e B u d g e t t o O r g a n i z a t i o n a l G o a l s a n d P e r f o r m a n c e • E s t a b l i s h m e n t o f S t r a t e g i c P l a n s • L o n g - T e r m F i n a n c i a l P l a n n i n g • B u d g e t i n g f o r R e s u l t s a n d O u t c o m e s • A S y s t e m a t i c A p p r o a c h t o M a n a g i n g P e r f o r m a n c e • P e r f o r m a n c e M a n a g e m e n t f o r D e c i s i o n M a k i n g • A l t e r n a t i v e S e r v i c e D e l i v e r y : S h a r e d S e r v i c e s • E x a m i n i n g t h e B e n e f i t s o f M a n a g e d C o m p e t i t i o n • P u b l i c P a r t i c i p a t i o n i n P l a n n i n g , B u d g e t i n g , a n d P e r f o r m a n c e M a n a g e m e n t G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E s t a b l i s h m e n t o f S t r a t e g i c P l a n s ( 2 0 0 5 ) z E s s e n t i a l s t e p s o f a s o u n d p r o c e s s I n i t i a t e t h e p r o c e s s P r e p a r e a m i s s i o n s t a t e m e n t A s s e s s e n v i r o n m e n t a l f a c t o r s I d e n t i f y c r i t i c a l i s s u e s A g r e e o n a s m a l l n u m b e r o f b r o a d g o a l s z D e v e l o p s t r a t e g i e s t o a c h i e v e b r o a d g o a l s z C r e a t e a n a c t i o n p l a n z D e v e l o p m e a s u r a b l e o b j e c t i v e s z I n c o r p o r a t e p e r f o r m a n c e m e a s u r e s z R e v i e w o r a d o p t t h e p l a n z I m p l e m e n t t h e p l a n z M o n i t o r p r o g r e s s z R e a s s e s s t h e p l a n 1 3 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f D u r h a m N C . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N L o n g - T e r m F i n a n c i a l P l a n n i n g ( 2 0 0 8 ) z T i m e h o r i z o n F i v e t o 1 0 y e a r s i n t o t h e f u t u r e z S c o p e C o n s i d e r a l l a p p r o p r i a t e d f u n d s , b u t e s p e c i a l l y t h o s e t h a t a c c o u n t f o r i s s u e s o f t o p c o n c e r n D o n ’ t j u s t f o c u s o n t h e G e n e r a l F u n d z F r e q u e n c y U p d a t e l o n g - t e r m p l a n n i n g a c t i v i t i e s a s n e e d e d z C o n t e n t F i n a n c i a l e n v i r o n m e n t R e v e n u e a n d e x p e n d i t u r e f o r e c a s t s D e b t p o s i t i o n a n d a f f o r d a b i l i t y a n a l y s i s S t r a t e g i e s f o r a c h i e v i n g f i n a n c i a l b a l a n c e P l a n m o n i t o r i n g m e c h a n i s m s z V i s i b i l i t y E f f e c t i v e m e a n s t o c o m m u n i c a t e i n f o r m a t i o n 1 4 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N S t . J o h n s C o u n t y , F L . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N ( 1 ) D e t e r m i n e h o w m u c h m o n e y i s a v a i l a b l e . ( 2 ) P r i o r i t i z e r e s u l t s . ( 3 ) A l l o c a t e r e s o u r c e s a m o n g h i g h p r i o r i t y r e s u l t s . ( 4 ) C o n d u c t a n a l y s i s t o d e t e r m i n e w h a t s t r a t e g i e s , p r o g r a m s , a n d a c t i v i t i e s w i l l b e s t a c h i e v e d e s i r e d r e s u l t s . ( 5 ) B u d g e t a v a i l a b l e d o l l a r s t o t h e m o s t s i g n i f i c a n t p r o g r a m s a n d a c t i v i t i e s . ( 6 ) S e t m e a s u r e s o f a n n u a l p r o g r e s s , m o n i t o r , a n d c l o s e t h e f e e d b a c k l o o p . ( 7 ) C h e c k w h a t a c t u a l l y h a p p e n e d . ( 8 ) C o m m u n i c a t e p e r f o r m a n c e r e s u l t s . B u d g e t i n g f o r R e s u l t s a n d O u t c o m e s ( 2 0 0 7 ) 1 5 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f R e d m o n d , W A . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N A S y s t e m a t i c A p p r o a c h t o M a n a g i n g P e r f o r m a n c e ( 2 0 1 1 ) z T h e N a t i o n a l P e r f o r m a n c e M a n a g e m e n t C o m m i s s i o n , r e p r e s e n t i n g e l e v e n n a t i o n a l p u b l i c i n t e r e s t o r g a n i z a t i o n s o f e l e c t e d a n d a p p o i n t e d s t a t e a n d l o c a l g o v e r n m e n t o f f i c i a l s ( i n c l u d i n g t h e G F O A ) , i s s u e d a r e p o r t i n 2 0 1 0 , A P e r f o r m a n c e M a n a g e m e n t F r a m e w o r k f o r S t a t e a n d L o c a l G o v e r n m e n t : F r o m M e a s u r e m e n t a n d R e p o r t i n g t o M a n a g e m e n t a n d I m p r o v i n g . I n f o r m a t i o n , m e a s u r e s , g o a l s , p r i o r i t i e s , a n d a c t i v i t i e s a r e r e l e v a n t t o t h e p r i o r i t i e s a n d w e l l b e i n g o f t h e g o v e r n m e n t a n d t h e c o m m u n i t y . I n f o r m a t i o n r e l a t e d t o p e r f o r m a n c e , d e c i s i o n s , r e g u l a t i o n s , a n d p r o c e s s e s i s t r a n s p a r e n t — e a s y t o a c c e s s , u s e , a n d u n d e r s t a n d . G o a l s , p r o g r a m s , a c t i v i t i e s , a n d r e s o u r c e s a r e a l i g n e d w i t h p r i o r i t i e s a n d d e s i r e d r e s u l t s . D e c i s i o n s a n d p r o c e s s e s a r e d r i v e n b y t i m e l y , a c c u r a t e , a n d m e a n i n g f u l d a t a . P r a c t i c e s a r e s u s t a i n a b l e o v e r t i m e a n d a c r o s s o r g a n i z a t i o n a l c h a n g e s . P e r f o r m a n c e m a n a g e m e n t h e l p s t o t r a n s f o r m t h e o r g a n i z a t i o n , i t s m a n a g e m e n t , a n d t h e p o l i c y m a k i n g p r o c e s s . 1 6 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P e r f o r m a n c e M a n a g e m e n t f o r D e c i s i o n M a k i n g ( 2 0 0 2 , 2 0 0 7 ) • I m p o r t a n t c o m p o n e n t o f l o n g - t e r m s t r a t e g i c p l a n n i n g a n d d e c i s i o n m a k i n g • L i n k e d t o t h e b u d g e t • B a s e d o n p r o g r a m g o a l s a n d o b j e c t i v e s t i e d t o p r o g r a m m i s s i o n o r p u r p o s e • F o c u s o n o u t c o m e s • C o m p a r i s o n s o v e r t i m e • V e r i f i a b l e , u n d e r s t a n d a b l e , a n d t i m e l y • C o n s i s t e n t t h r o u g h o u t t h e s t r a t e g i c p l a n , b u d g e t , a c c o u n t i n g a n d r e p o r t i n g s y s t e m s a n d t o t h e e x t e n t p r a c t i c a l , b e c o n s i s t e n t o v e r t i m e • R e p o r t e d i n t e r n a l l y a n d e x t e r n a l l y • M o n i t o r e d a n d u s e d i n m a n a g e r i a l d e c i s i o n - m a k i n g p r o c e s s e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f C o r v a l l i s , O R . 1 7 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N A l t e r n a t i v e S e r v i c e D e l i v e r y : S h a r e d S e r v i c e s ( 2 0 0 7 ) • G e t t i n g S t a r t e d • F e a s i b i l i t y S t u d y • C o m i n g t o A g r e e m e n t • I m p l e m e n t a t i o n • O n g o i n g M o n i t o r i n g • L o n g - t e r m R e v i e w / A g r e e m e n t R e a s s e s s m e n t G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E x a m i n i n g t h e B e n e f i t s o f M a n a g e d C o m p e t i t i o n ( 2 0 0 6 ) • E x e c u t i v e d i r e c t i o n • E n v i r o n m e n t a l c o n s i d e r a t i o n • S t a k e h o l d e r s u p p o r t • L e g a l r a m i f i c a t i o n s • S e r v i c e a v a i l a b i l i t y • C o s t • T r a n s i t i o n p r o c e s s • P e r f o r m a n c e m e t r i c s 1 8 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P u b l i c P a r t i c i p a t i o n i n P l a n n i n g , B u d g e t i n g , a n d P e r f o r m a n c e M a n a g e m e n t ( 2 0 0 9 ) • G o o d p u b l i c p a r t i c i p a t i o n p r a c t i c e s c a n h e l p g o v e r n m e n t s b e m o r e a c c o u n t a b l e a n d r e s p o n s i v e . • T r a d i t i o n a l l y , p u b l i c p a r t i c i p a t i o n m e a n t v o t i n g , r u n n i n g f o r o f f i c e , a t t e n d i n g p u b l i c h e a r i n g s , a n d k e e p i n g i n f o r m e d o n i m p o r t a n t i s s u e s o f t h e d a y b y t h e l o c a l n e w s p a p e r . • M o r e r e c e n t l y , g o v e r n m e n t s h a v e u s e d n e w f o r m s o f p u b l i c i n v o l v e m e n t – s u r v e y s , f o c u s g r o u p s , n e i g h b o r h o o d c o u n c i l s , a n d C i t i z e n R e l a t i o n s h i p M a n a g e m e n t s y s t e m s , a s i n p u t s t o d e c i s i o n s a b o u t s e r v i c e l e v e l s a n d p r e f e r e n c e s , c o m m u n i t y p r i o r i t i e s , a n d o r g a n i z a t i o n a l p e r f o r m a n c e . • I d e n t i f y i n g t h e P u b l i c ’ s P e r s p e c t i v e - T h e b e s t w a y t o a s s u r e a b r o a d p e r s p e c t i v e i s t o c o l l e c t i n f o r m a t i o n i n a v a r i e t y o f w a y s a n d f r o m a v a r i e t y o f s o u r c e s . • I d e n t i f y i n g c i t i z e n p r e f e r e n c e s a n d s a t i s f a c t i o n l e v e l s s h o u l d o c c u r b e f o r e a d e c i s i o n h a s b e e n m a d e . • P u b l i c i n v o l v e m e n t a p p r o a c h e s s h o u l d e n c o u r a g e a l l c i t i z e n s t o p a r t i c i p a t e . • G o v e r n m e n t s s h o u l d e x p l a i n h o w p u b l i c i n v o l v e m e n t h a s m a d e a d i f f e r e n c e i n p l a n s , b u d g e t s , a n d p e r f o r m a n c e , a n d g a t h e r p u b l i c f e e d b a c k o n h o w s u c c e s s f u l t h e p r o c e s s h a s b e e n t h r o u g h t h e p u b l i c ’ s e y e s . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f C o r v a l l i s , O R . 1 9 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N • R e c o m m e n d e d B u d g e t P r a c t i c e s f r o m t h e N a t i o n a l A d v i s o r y C o u n c i l o n S t a t e a n d L o c a l B u d g e t i n g • F i n a n c i a l F o r e c a s t i n g i n t h e B u d g e t P r e p a r a t i o n P r o c e s s • E f f e c t i v e B u d g e t i n g o f S a l a r y a n d W a g e s • I n f l a t i o n a r y I n d i c e s i n B u d g e t i n g • S t r a t e g i e s f o r M a n a g i n g H e a l t h - C a r e C o s t s • M e a s u r i n g t h e F u l l C o s t s o f G o v e r n m e n t S e r v i c e • P r i c i n g I n t e r n a l S e r v i c e s • I n c o r p o r a t i n g a C a p i t a l P r o j e c t B u d g e t i n t h e B u d g e t P r o c e s s T h e B u d g e t P r o c e s s a n d T e c h n i q u e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N N a t i o n a l A d v i s o r y C o u n c i l o n S t a t e a n d L o c a l B u d g e t i n g ( 1 9 9 8 ) z N A C S L B ( 1 9 9 5 - 1 9 9 7 ) G F O A a n d 7 o t h e r S L G a s s o c i a t i o n s G o a l = s e t o f r e c o m m e n d e d b u d g e t p r a c t i c e s z R e c o m m e n d a t i o n : A d o p t N A C S L B F r a m e w o r k a n d p r a c t i c e s t a t e m e n t s B l u e p r i n t r a t h e r t h a n m a n d a t o r y p r e s c r i p t i o n s I n c r e m e n t a l i m p l e m e n t a t i o n f o r e s e e n 2 0 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N F i n a n c i a l F o r e c a s t i n g i n t h e B u d g e t P r e p a r a t i o n P r o c e s s ( 2 0 1 4 ) z D e f i n e A s s u m p t i o n s z G a t h e r I n f o r m a t i o n z P r e l i m i n a r y / E x p l o r a t o r y A n a l y s i s z S e l e c t M e t h o d s z I m p l e m e n t M e t h o d s z U s e t h e F o r e c a s t G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N L a k e s h o r e T e c h n i c a l C o l l e g e , W I . 2 1 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E f f e c t i v e B u d g e t i n g o f S a l a r y a n d W a g e s ( 2 0 1 0 ) • P e r s o n n e l T r a c k i n g S y s t e m • V a c a n c y A d j u s t m e n t s – S t a r t D a t e s , T r e n d s , A t t r i t i o n , F r o z e n P o s i t i o n s • C o l l e c t i v e B a r g a i n i n g A g r e e m e n t s • I m p a c t o f I n f l a t i o n • O p t i m a l S t a f f i n g L e v e l – C o m p a r i s o n t o o t h e r G o v e r n m e n t s – S t a f f i n g G u i d e l i n e s – C l a s s i f y i n g P o s i t i o n b y G o a l – U s e o f V o l u n t e e r s / T e m p o r a r y P o s i t i o n s • C o m p e n s a t i o n A p p r o a c h e s • P e r s o n n e l C a t e g o r i z a t i o n – C a p i t a l v e r s u s O p e r a t i n g , S h a r e d S e r v i c e s , F u n d i n g S o u r c e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f W h i t e P l a i n s , N . Y . 2 2 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N I n f l a t i o n a r y ȱ I n d i c e s ȱ i n ȱ B u d g e t i n g ȱ ( 2 0 1 0 ) • I n f l a t i o n I n d i c e s • C P I • G D P D e f l a t o r • C o n s t r u c t i o n P r i c e I n d e x • E m p l o y m e n t C o s t I n d e x • M u n i c i p a l C o s t I n d e x • A l t e r n a t i v e s t o U s i n g I n d i c e s • E c o n o m i c C o n s u l t a n t s • L o c a l U n i v e r s i t i e s • P e e r G o v e r n m e n t s • V e n d o r C o n t a c t s • I n d u s t r y S p e c i f i c J o u r n a l s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N V i l l a g e o f W e s t m o n t , I l l i n o i s 2 3 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N S t r a t e g i e s f o r M a n a g i n g H e a l t h - C a r e C o s t s ( 2 0 1 4 ) z M o n i t o r M e d i c a l P l a n N e t w o r k a n d P r e s c r i p t i o n D r u g D i s c o u n t s z S e t a n A p p r o p r i a t e L e v e l o f C o s t S h a r i n g w i t h E m p l o y e e s z E n c o u r a g i n g G o o d C o n s u m e r B e h a v i o r s z A n a l y z e R i s k s i n S e l f - I n s u r a n c e P r e m i u m s A d m i n i s t r a t i v e F e e s H i g h - c o s t C l a i m s z M e a s u r e m e n t s t o A s s e s s P l a n P e r f o r m a n c e M e d i c a l L o s s R a t i o M e d i c a l C l a i m T r e n d s N e t w o r k D i s c o u n t s P r e s c r i p t i o n D r u g C o s t T r e n d / G e n e r i c D r u g S u b s t i t u t i o n R a t e z A d d i t i o n a l S t r a t e g i e s E d u c a t e E m p l o y e e s A u d i t P l a n R e c o r d s R e b i d P e r i o d i c a l l y G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f G r a n t s P a s s , O R . 2 4 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N M e a s u r i n g t h e F u l l C o s t s o f G o v e r n m e n t S e r v i c e ( 2 0 0 2 ) z C a l c u l a t e t h e f u l l c o s t o f a l l s e r v i c e s U s e f u l w h e n c o n s i d e r i n g a l t e r n a t i v e s e r v i c e - d e l i v e r y o p t i o n s • D i s t i n g u i s h a v o i d a b l e c o s t s f r o m u n a v o i d a b l e c o s t s • C o n s i d e r c o s t o f t r a n s i t i o n • C o n s i d e r o f f s e t t i n g r e v e n u e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P r i c i n g I n t e r n a l S e r v i c e s ( 2 0 1 3 ) z I d e n t i f y G o a l s G o v e r n D e m a n d f o r a S e r v i c e D e v e l o p E n t e r p r i s e R a t e M o d e l s C a l c u l a t e I n d i r e c t C o s t s P r o v i d e I n p u t f o r F u l l C o s t i n g D i s c u s s V a l u e o f S e r v i c e P r o m o t e C o m p e t i t i o n i n S e r v i c e D e l i v e r y C u s t o m i z e S e r v i c e L e v e l s f o r D i f f e r e n t C u s t o m e r s z D e c i d e B a s i s o f A l l o c a t i o n C a u s e a n d E f f e c t R e l a t i o n s h i p B e n e f i t R e c e i v e d F a i r n e s s L e g a l C o n s t r a i n t s 2 5 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N I n t e r n a l S e r v i c e A l l o c a t i o n B a s i s P a y r o l l p r o c e s s i n g N u m b e r o f e m p l o y e e s , n u m b e r o f c h e c k s B u d g e t i n g L a b o r h o u r s , s i z e o f b u d g e t I n s u r a n c e N u m b e r o f e m p l o y e e s , e x p e r i e n c e L e g a l s e r v i c e s D i r e c t l a b o r h o u r s O f f i c e s p a c e / r e n t S q u a r e f e e t o f s p a c e o c c u p i e d P r o c u r e m e n t s e r v i c e s N u m b e r o f P . O . s , d o l l a r v o l u m e s , d i r e c t l a b o r V e h i c l e c o s t s M i l e s d r i v e n , h o u r s u s e d I n f o r m a t i o n t e c h n o l o g y N u m b e r o f d e v i c e s , s e r v e r t i m e , n u m b e r o f c a l l s t o h e l p d e s k , d i r e c t l a b o r h o u r s E x a m p l e s o f I n t e r n a l S e r v i c e s C o s t A l l o c a t i o n B a s e s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N I n c o r p o r a t i n g a C a p i t a l P r o j e c t B u d g e t i n t h e B u d g e t P r o c e s s ( 2 0 0 7 ) • T h e c a p i t a l b u d g e t s h o u l d b e d i r e c t l y l i n k e d t o , a n d f l o w f r o m , t h e m u l t i - y e a r c a p i t a l i m p r o v e m e n t p l a n . • O r g a n i z a t i o n s s h o u l d e s t a b l i s h s p e c i f i c c r i t e r i a e a r l y i n t h e p r o c e s s t o h e l p p r i o r i t i z e c a p i t a l s u b m i t t a l s . • T h e c a p i t a l b u d g e t s h o u l d b e a d o p t e d b y f o r m a l a c t i o n o f t h e l e g i s l a t i v e b o d y , e i t h e r a s a c o m p o n e n t o f t h e o p e r a t i n g b u d g e t o r a s a s e p a r a t e c a p i t a l b u d g e t . • S h o u l d c o m p l y w i t h a l l s t a t e a n d l o c a l l e g a l r e q u i r e m e n t s . • S h o w a s c h e d u l e f o r c o m p l e t i o n o f t h e p r o j e c t , i n c l u d i n g s p e c i f i c p h a s e s o f a p r o j e c t , e s t i m a t e d f u n d i n g r e q u i r e m e n t s f o r t h e u p c o m i n g y e a r ( s ) , a n d p l a n n e d t i m i n g f o r a c q u i s i t i o n , d e s i g n , a n d c o n s t r u c t i o n a c t i v i t i e s . • A n y a n a l y t i c a l i n f o r m a t i o n d e e m e d h e l p f u l f o r s e t t i n g c a p i t a l p r i o r i t i e s . • P e r i o d i c r e p o r t s s h o u l d b e i s s u e d r o u t i n e l y o n a l l o n g o i n g c a p i t a l p r o j e c t s . c o m p a r i n g a c t u a l e x p e n d i t u r e s t o t h e o r i g i n a l b u d g e t , i d e n t i f y l e v e l o f c o m p l e t i o n o f t h e p r o j e c t , a n d e n u m e r a t e a n y c h a n g e s i n t h e s c o p e o f t h e p r o j e c t , a n d a l e r t m a n a g e m e n t t o a n y c o n c e r n s w i t h c o m p l e t i o n o f t h e p r o j e c t o n t i m e o r o n s c h e d u l e . 2 6 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f H a n o v e r P a r k , I L . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N E l e m e n t s o f T h e O p e r a t i n g B u d g e t D o c u m e n t • P r e s e n t i n g O f f i c i a l F i n a n c i a l D o c u m e n t s o n Y o u r G o v e r n m e n t ’ s W e b s i t e • M a k i n g t h e B u d g e t D o c u m e n t E a s i e r t o U n d e r s t a n d • D e p a r t m e n t a l P r e s e n t a t i o n i n t h e O p e r a t i n g B u d g e t D o c u m e n t • P r e s e n t i n g t h e C a p i t a l B u d g e t i n t h e O p e r a t i n g B u d g e t D o c u m e n t • T h e S t a t i s t i c a l / S u p p l e m e n t a l S e c t i o n o f t h e B u d g e t D o c u m e n t • B a s i s o f A c c o u n t i n g v e r s u s t h e B u d g e t a r y B a s i s 2 7 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P r e s e n t i n g O f f i c i a l F i n a n c i a l D o c u m e n t s o n Y o u r G o v e r n m e n t ’ s W e b s i t e ( 2 0 0 9 ) z B e n e f i t s H e i g h t e n e d a w a r e n e s s U n i v e r s a l a c c e s s i b i l i t y ( w i d e r a n g e o f p o t e n t i a l u s e r s ) P o t e n t i a l f o r i n t e r a c t i o n w i t h u s e r s E n h a n c e d d i v e r s i t y ( u s e o f d i f f e r e n t l a n g u a g e s ) L o w e r c o s t s ( n o h a n d l i n g a n d m a i l i n g , l i k e w i t h h a r d c o p y ) C o n t r i b u t i o n t o s u s t a i n a b i l i t y ( r e d u c e p a p e r c o n s u m p t i o n ) B r o a d e n e d p o t e n t i a l s c o p e ( u s e o f h y p e r l i n k s ) z S p e c i f i c g u i d e l i n e s : C o n s i s t e n c y w i t h h a r d c o p y v e r s i o n ( i f a n y ) L e g i b i l i t y ( f o n t s i z e a n d p a g e l a y o u t / d i r e c t i o n ) s h o u l d b e c o n s i s t e n t P a g i n a t i o n ( n u m b e r s p a g e s s e q u e n t i a l l y ) F i l e s i z e • U s e s i n g l e e l e c t r o n i c f i l e • I n d i v i d u a l f i l e s f o r v a r i o u s c o m p o n e n t s o f r e p o r t s m a y b e u s e d a s w e l l P l a c e m e n t ( p r e d o m i n a t e l y o n h o m e p a g e ) G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f C o r i n t h , T X . 2 8 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N M a k i n g t h e B u d g e t D o c u m e n t E a s i e r t o U n d e r s t a n d ( 2 0 1 4 ) z S p e c i f i c r e c o m m e n d a t i o n s : B e O r g a n i z e d • C o n s i d e r s e q u e n c e s i m i l a r t o B u d g e t A w a r d s c r i t e r i a A v o i d E x c e s s D e t a i l A t t r a c t i v e D e s i g n • S i m p l e a n d e a s y t o u s e C o n s i s t e n c y • L i k e d e p a r t m e n t a l p r e s e n t a t i o n s H i g h l i g h t s • C o n s i d e r a b u d g e t – i n - b r i e f • E f f e c t i v e t a b l e s , c h a r t s , e t c . F o r m a t • P D F n u m b e r i n g m a t c h e s d o c u m e n t p a g e n u m b e r i n g • L i n k t a b l e o f c o n t e n t s t o s p e c i f i c p a g e s b y a c l i c k o f t h e m o u s e • H a v e p a g e s g o i n t h e s a m e d i r e c t i o n G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f N o r f o l k , V A . 2 9 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N D e p a r t m e n t P r e s e n t a t i o n i n t h e O p e r a t i n g B u d g e t D o c u m e n t ( 2 0 1 2 ) 1 . D e s i g n . T h e f o r m a t t i n g c a n b e e n h a n c e d a s f o l l o w s . 2 . B r e v i t y . A v o i d i n g e x c e s s i v e d e t a i l i s i m p o r t a n t , e s p e c i a l l y i n f i n a n c i a l s c h e d u l e s a n d t e x t . 3 . S e r v i c e s . A d e s c r i p t i o n o f s e r v i c e s o r f u n c t i o n a l r e s p o n s i b i l i t i e s m u s t b e i n c l u d e d . 4 . I s s u e s . D i s c u s s c h a l l e n g e s , i s s u e s , a n d o p p o r t u n i t i e s . 5 . R e v e n u e s . R e v e n u e s m a y i n c l u d e a n y f e e s o r c h a r g e s t h a t t h e d e p a r t m e n t g e n e r a t e s . 6 . E x p e n d i t u r e s . T h e a n a l y s i s o f e x p e n d i t u r e s s h o u l d b e d o n e i n a b r o a d m a n n e r . 7 . S t a f f i n g . S t a f f i n g i n f o r m a t i o n i s u s u a l l y p r e s e n t e d i n o n e o f t w o m a n n e r s . A d e p a r t m e n t a l o r g a n i z a t i o n c h a r t m a y b e p r o v i d e d t o s u p p l e m e n t t h e m a i n o r g a n i z a t i o n c h a r t o f t h e g o v e r n m e n t . A b r i e f s c h e d u l e m a y s u m m a r i z e t h e d e p a r t m e n t a l h e a d c o u n t o v e r a p e r i o d o f t i m e ( i n c l u d i n g t h e u p c o m i n g b u d g e t y e a r ) , w h i c h w o u l d h a v e t h e a d v a n t a g e o f i d e n t i f y i n g t r e n d s . 8 . P r i o r i t i z a t i o n / G o a l s a n d O b j e c t i v e s . I t h a s b e c o m i n g i n c r e a s i n g l y c o m m o n t o e x p l a i n h o w s e r v i c e s a r e p r i o r i t i z e d . 9 . M e a s u r e s . P e r f o r m a n c e m e a s u r e s t y p i c a l l y a r e i n c l u d e d i n t h e r e s p e c t i v e d e p a r t m e n t a l s e c t i o n o f t h e b u d g e t d o c u m e n t . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f B l o o m i n g t o n , M N . 3 0 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N P r e s e n t i n g t h e C a p i t a l B u d g e t i n t h e O p e r a t i n g D o c u m e n t ( 2 0 0 8 ) • T h e c a p i t a l b u d g e t s h o u l d b e i n a d i s t i n c t s e c t i o n o f t h e b u d g e t d o c u m e n t . • A d e f i n i t i o n o f c a p i t a l e x p e n d i t u r e s s h o u l d b e i n c l u d e d i n t h e b u d g e t d o c u m e n t . T h e p r e s e n t a t i o n s h o u l d f o c u s o n b o t h s o u r c e s a n d u s e s . I n d i c a t e t h e t o t a l d o l l a r a m o u n t o f e x p e n d i t u r e s f o r t h e b u d g e t y e a r a n d f o r t h e m u l t i - y e a r p l a n . T h e s o u r c e s a n d u s e s s u m m a r y s h o u l d i n c l u d e a l l p r o j e c t s ( r e g a r d l e s s o f f u n d ) t h a t f i t w i t h i n t h e g o v e r n m e n t ’ s d e f i n i t i o n o f c a p i t a l e x p e n d i t u r e s . T h i s c a n b e p r e s e n t e d b y f u n d , c a t e g o r y , p r i o r i t y , s t r a t e g i c g o a l , o r g e o g r a p h i c l o c a t i o n . • L e g i b l e g r a p h i c i l l u s t r a t i o n s ( p i c t u r e s o r m a p s ) c a n a d d v a l u e t o a c a p i t a l p r o j e c t p r e s e n t a t i o n . • G o v e r n m e n t s m a y c o n s i d e r i n d i c a t i n g o n i n d i v i d u a l c a p i t a l p r o j e c t s h e e t s w h a t s p e c i f i c g o a l s t h a t t h e c a p i t a l p r o j e c t i s f u l f i l l i n g . G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N C i t y o f C e n t r a l i a , I L . 3 1 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N T h e S t a t i s t i c a l / S u p p l e m e n t a l S e c t i o n o f B u d g e t D o c u m e n t ( 2 0 0 5 ) • E n s u r e r e l e v a n c e o f d a t a • R e l a t e t o r e s t o f d o c u m e n t • F i t t o t h e s p e c i f i c t y p e o f g o v e r n m e n t • A v o i d e x c e s s i v e d e t a i l • O r g a n i z e i n f o r m a t i o n b y m a j o r c a t e g o r y • F o r m o f g o v e r n m e n t • G e o g r a p h y • C o m m u n i t y p r o f i l e • D e m o g r a p h i c s a n d e c o n o m i c s • P r o v i d e e x p l a n a t i o n s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N I l l i n o i s S t a t e T o l l H i g h w a y A u t h o r i t y . I L . 3 2 G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N B a s i s o f A c c o u n t i n g v e r s u s t h e B u d g e t a r y B a s i s ( 1 9 9 9 ) • C l e a r l y d e f i n e t h e b a s i s o f b u d g e t i n g • S t a t e i f t h e b a s i s o f b u d g e t i n g a n d t h e b a s i s o f a c c o u n t i n g a r e t h e s a m e • I f n o t , n o t e m a j o r d i f f e r e n c e s a n d s i m i l a r i t i e s • A v o i d t e c h n i c a l t e r m i n o l o g y • I f u s e o f t e c h n i c a l t e r m i n o l o g y u n a v o i d a b l e , d e f i n e a n d e x p l a i n t e r m s G O V E R N M E N T F I N A N C E O F F I C E R S A S S O C I A T I O N F a i r f a x C o u n t y , V A . 3 3 U.S. PUBLIC FINANCE ISSUER COMMENT 3 November 2017 RATING General Obligation (or GO Related) 1 Aaa No Outlook Contacts Nathan Carley 312-706-9958 Associate Analyst nathan.carley@moodys.com Eric Hoffmann 415-274-1702 Senior Vice President/ Manager eric.hoffmann@moodys.com CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 Town of Los Gatos, CA Annual Comment on Los Gatos Issuer Profile The Town of Los Gatos is located in Santa Clara County in west central California, approximately 10 miles southwest of San Jose. The county has a population of 1,868,149 and a high population density of 1,469 people per square mile. The county's median family income is $108,637 (1st quartile) and the August 2017 unemployment rate was 3.8% (2nd quartile) 2 . The largest industry sectors that drive the local economy are professional/ scientific/technical services, manufacturing, and health services. Credit Overview The credit position for Los Gatos is extremely strong. Its Aaa rating is well above the median rating of Aa3 for US cities. The notable credit factors include a robust financial position, a considerable tax base with affluent income and wealth levels, a manageable debt burden and a significant pension liability. Finances: The town has a very healthy financial position, which is in line with the assigned rating of Aaa. Los Gatos' fund balance as a percent of operating revenues (71.1%) far surpasses the US median. However, this metric declined slightly from 2012 to 2016. In addition, the cash balance as a percent of operating revenues (91.7%) is far superior to other Moody's-rated cities nationwide. Economy and Tax Base: The economy and tax base of the town are exceptionally healthy and are consistent with its Aaa rating. The median family income equals a robust 238.9% of the US level. Moreover, the full value per capita ($338,948) is materially above the US median, and saw an impressive increase between 2012 and 2016. Lastly, Los Gatos' total full value ($10.6 billion) is much larger than other Moody's-rated cities nationwide. Debt and Pensions: The debt and pension liabilities of the town are mid-ranged overall, yet they are weak relative to the assigned rating of Aaa. Favorably, the net direct debt to full value (0.2%) is materially lower than the US median, and remained the same from 2012 to 2016. On the other hand, the Moody's-adjusted net pension liability to operating revenues (2.7x) is materially above the US median. Management and Governance: California cities have an Institutional Framework score 3 of A, which is moderate compared to the nation. Institutional Framework scores measure a sector's legal ability to increase revenues and decrease expenditures. California cities' major revenue sources can only be raised with voter approval, or, in the case of ad valorem property taxes, cannot be raised except to meet GO bond payments. Ad valorem property tax rates cannot be increased above 1% except to meet GO bond payments, and assessed valuation growth is also generally limited to 2% annually unless a property changes ownership. MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Unpredictable revenue fluctuations tend to be moderate, or between 5-10% annually. Across the sector, fixed and mandated costs are generally less than 25% of expenditures. However, California has strong public sector unions, which can limit the ability to cut expenditures. Unpredictable expenditure fluctuations tend to be moderate, between 5-10% annually. Sector Trends - California Cities California cities will continue to benefit from a strong and improving state economy. Growing assessed value trends and resulting property taxes, as well as robust statewide sales tax growth, will continue to raise city property tax and sales tax revenues. Housing values statewide continue to increase and provide long-term strength to the state's cities. Employment trends are positive and will continue to boost the statewide economy, particularly in the high tech sector. California cities, however, remain exposed to growing long term pension and OPEB liabilities. EXHIBIT 1 Key Indicators 4 5 Los Gatos Source: Moody's Investors Service This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. 2 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE EXHIBIT 2 Available fund balance as a percent of operating revenues decreased from 2012 to 2016 Source: Issuer financial statements; Moody's Investors Service EXHIBIT 3 Full value of the property tax base increased from 2012 to 2016 Source: Issuer financial statements; Government data sources; Offering statements; Moody's Investors Service EXHIBIT 4 Moody's-adjusted net pension liability to operating revenues decreased from 2012 to 2016 Source: Issuer financial statements; Government data sources; Offering statements; Moody's Investors Service 3 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Endnotes 1 The rating referenced in this report is the issuer’s General Obligation (GO) rating or its highest public rating that is GO-related. A GO bond is generally backed by the full faith and credit pledge and total taxing power of the issuer. GO-related securities include general obligation limited tax, annual appropriation, lease revenue, non-ad valorem, and moral obligation debt. The referenced ratings reflect the government’s underlying credit quality without regard to state guarantees, enhancement programs or bond insurance. 2 The demographic data presented, including population, population density, per capita personal income and unemployment rate are derived from the most recently available US government databases. Population, population density and per capita personal income come from the American Community Survey while the unemployment rate comes from the Bureau of Labor Statistics. The largest industry sectors are derived from the Bureau of Economic Analysis. Moody’s allocated the per capita personal income data and unemployment data for all counties in the US census into quartiles. The quartiles are ordered from strongest-to-weakest from a credit perspective: the highest per capita personal income quartile is first quartile, and the lowest unemployment rate is first quartile. 3 The institutional framework score assesses a municipality’s legal ability to match revenues with expenditures based on its constitutionally and legislatively conferred powers and responsibilities. See US Local Government General Obligation Debt (December 2016) methodology report for more details. 4 For definitions of the metrics in the Key Indicators Table, US Local Government General Obligation Methodology and Scorecard User Guide (July 2014) . Metrics represented as N/A indicate the data were not available at the time of publication. 5 The medians come from our most recently published local government medians report, Medians – Growing Tax Bases and Stable Fund Balances Support Sector’s Stability (March 2016) which is available on Moodys.com. 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REPORT NUMBER 1084386 5 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 6 3 November 2017 Town of Los Gatos, CA: Annual Comment on Los Gatos FY 2017 Los Gatos Campbell Cupertino Gilroy Los Altos Morgan Hill Palo Alto Saratoga average US CAFR excld Los Gatos Median Cash Balance 36,038,845 27,651,308 62,119,171 23,250,994 42,686,617 12,919,349 47,779,000 13,576,828 32,854,752 7,221 Operating Revenues 38,746,123 48,011,214 92,812,954 49,801,339 39,109,065 35,364,556 164,400,000 21,112,412 64,373,077 21,262 Available General Fund Balance 29,180,624 28,924,105 51,695,980 24,354,609 43,778,103 14,379,374 55,398,000 10,721,129 32,750,186 7,221 Net Pension Liability 47,271,733 50,745,930 36,739,962 74,972,158 31,428,897 40,055,704 377,319,000 6,335,606 88,228,180 N/A Available Fund Balance/Oper Revenue 75.3%60.2%55.7%48.9%111.9%40.7%33.7%50.8%50.9%32.5% Net cash/Oper Revenue 93.0%57.6%66.9%46.7%109.1%36.5%29.1%64.3%51.0%35.4% Net Pension Liability/Oper Revenue 122.0%105.7%39.6%150.5%80.4%113.3%229.5%30.0%137.1%N/A Stabilization/catastrophe arrangement 25% of GF $6,000,000 $19,000,000 40% of GF 20% of GF no policy 18.5% of GF $2,500,000 GFOA recom - 16.7% of GF oper revenues expenditures plus 10% of GF expenditures expenditures oper expend revenues Amount - 2017 CAFR 9,939,694 10,941,078 19,000,000 19,103,878 6,905,000 0 29,232,775 2,500,000 Stab/catastrophe as a % of oper revenues 25.7%22.8%20.5%38.4%17.7%0.0%17.8%11.8%