Establish control systems to manage resources
As the situation begins to stabilize, make sure that revenues and expenditures are on track. Variance analysis is part of this control but you may also want to conduct regular reviews on headcount, purchases, capital projects, and performance. Institutionalizing regular monitoring systems in these areas is key to ensuring that the city is managing its resources adequately.
ASSESSMENT
Some questions to guide your thinking
- Does your city have data that enables management to control expenditures?
- Does your city conduct regular reviews on staff headcount, purchases, capital projects, and performance?
- What does this information tell you about your city’s management of resources and how it can improve?
Reading
Creating a rainy-day fund
Pew Charitable Trust 5 minutes
Among city governments in the 30 largest US metropolitan areas, only sixteen have funds codified by ordinance or statute. This reading discusses some of the benefits of establishing a rainy-day fund using a basic three-pronged design framework.
- Set fund size targets that match the city’s experience with volatility.
- Tie rainy day fund deposits to observed volatility.
- Establish clear withdrawal conditions and criteria.
Reading
Monitoring and forecasting cash flows
Government Finance Officers Association (GFOA) 5 minutes
Learn what systems and principles can be established to secure your city's financial position and pinpoint financial issues that might need immediate attention.
- Relevant information is on pages 6-7
Reading
Using long-term treatments for balancing budgets
Government Finance Officers Association (GFOA) 10 minutes
This article recommends several long-term ideas for transforming local finances. The first section includes tips on leadership strategies and institutional design.
- Near-term treatments may avert a crisis but long-term strategies will help transform local finances.
- Long-term treatments can be categorized under controlling benefits, better budgeting practices, transforming services, and financially savvy community development.
Reading
Creating a rainy-day fund
Among city governments in the 30 largest US metropolitan areas, only sixteen have …
Reading
Monitoring and forecasting cash flows
Learn what systems and principles can be established to secure your city's financial…
Reading
Using long-term treatments for balancing budgets
This article recommends several long-term ideas for transforming local finances. The…