leveraging financial resources · 2017-05-22 · quantrix model which will integrate with budget,...

Leveraging Financial Resources

Long Range Financial Planning Update

PRESENTED  TO  MECKLENBURG  BOARD  OF  COUNTY  COMMISSIONERS

JANUARY  27,  2016

◦Linkage to County Strategic Plan

◦Long Range Financial Planning Tool

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Linkage to County Strategic Plan

Agreement on Mission & Goals

Linked to Objectives and Outcomes

(annual / 3 Yr. / beyond)

Prioritized for Impact (unconstrained)

Balanced to fit Fiscal Reality (constrained)

Annual Budget / Work Plans aligned to

Strategic Plan Timeline

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Sounds Simple, but in Reality it is Complex

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A Building Block to Success

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A Balancing Act of $ and Time

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Leveraging Financial Resources

CountyServices

Education

Capital/ Maintenance

Economy/ Fiscal Policy

Legislative Mandates

Leveraging Financial Resources

Priorities and Constraints Inclusive of

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Competition for Resources

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Necessary Tool – Long Range Planning Model

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Why Long Range Financial Planning (“LRFP”) Model

◦ Fiscal roadmap for where the County wants to go

◦ Integrated with Strategic Plan

◦ Includes operating budgets, capital, debt, other resources

◦ Designed to identify options and avoid problems

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LRFP Application for the County – Benefits

◦ Clarifies financial impact of strategic intent

◦ Imposes fiscal discipline (short‐term and long‐term)

◦ Speeds answers to “what if” questions

◦ Communication aid to citizens, BOCC, staff, and Rating Agencies

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LRFP – Uses (examples)

◦ Updates to annual forecast (revenues, expenditures, fund balances)

◦ Current year

◦ Impact on future years

◦ Budget / Actual reporting

◦ Financial Statistics and Metrics (financial, debt, capital plan performance)

◦ Property Revaluation planning (assessed value / tax rates)

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LRFP – Uses (examples)

◦ Current and future CIP capacity

◦ Balance of PayGo and Debt Financing

◦ Balance of “fixed” commitments and “discretionary spendingopportunities”

◦ Economic impact of future legislation (example – Sales Taxredistribution)

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County is currently building a LRFP Model – Anticipate a May 2016 implementation

◦ Quantrix model which will integrate with budget, accounting, debt, andcapital systems◦ Independent revenue forecasting model (led by UNCC economist, John

Connaughton)

◦ Six year outlook (current budget year + 5 future years) plus 3 years of history

◦Managed by Finance but allows for multiple users to view outputs andperform sensitivities

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While the real model is under construction, we have built a simple prototype which I will now highlight and demonstrate

◦ Impact of Sales Tax Redistribution Legislation

◦ Property Revaluations

◦ CIP Capacity and Funding

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Questions?

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Leveraging Financial Resources

Long Range Financial Planning Update

PRESENTED  TO  MECKLENBURG  BOARD  OF  COUNTY  COMMISSIONERS

JANUARY  27,  2016

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