Developing Appropriate Financial Policies in San Clemente, California Pall Gudgeirsson, Assistant...
17
Developing Appropriate Financial Policies in San Clemente, California Pall Gudgeirsson, Assistant City Manager/City Treasurer Rising to New Heights in Finance CSMFO, Palm Springs, California, February 22, 2006
-
Upload
nancy-hamilton -
Category
Documents
-
view
218 -
download
3
Transcript of Developing Appropriate Financial Policies in San Clemente, California Pall Gudgeirsson, Assistant...
Developing Appropriate Financial
Policies in San Clemente, California
Pall Gudgeirsson, Assistant City Manager/City TreasurerRising to New Heights in Finance CSMFO, Palm Springs, California, February 22, 2006
Page 2
Introduction
• Why San Clemente Developed a Fiscal Policy?– City coffers virtually empty in 1992
– Reserves non-existent or unfunded
– Projected deficit balances
– Failing infrastructure– Declining revenues– Increasing expenditures
• Successful?
“Trouble In Paradise”
Page 3
• “About the time we can make the ends meet, somebody moves the
ends.”– Herbert Hoover
Fiscal Policies: Means To An End…
Page 4
Long-Term Financial Planning – A Definition
• Identifies fiscal issues and opportunities
• Establishes fiscal policies and goals
• Examines fiscal trends• Produces a financial forecast• Provides for feasible solutions
Page 5
Long Term Financial Plan – The Process
1. Build the Foundationa) Financial Policies
b) Financial Trendsc) Financial Forecast
2. Identify Critical Issues3. Develop the Plan4. Implement the Plan5. Monitor the Plan
Page 6
Random Thoughts on Fiscal Policies
• Tips, Traps & Other Observations From the Beach– “The closest thing we ever had to a Fiscal Policy was a two year budget”
– A San Clemente Council member
Page 7
10. Decide on detailed or general policies
9. Get ahead of the game!
8. Be realistic & objective
7. Brief the press6. Update annually
Top Ten Tips
Page 8
5. Be sure that stakeholders have input into establishing the policy
4. Tie development of policies to LTFP, Budget & CIP
3. Show progress in meeting policy requirements
2. The policy should be a “living will”
Top Ten Tips
Page 9
1. Policies should be “goals” or “challenges”
Bonus Tip: Develop a policy when you get home…
Top Tip!
Page 10
10. Not preparing because they are too much work
9. Using dollar amounts in policies
8. Copying other entity’s policies
7. Not informing your employee associations of reserve policies
6. Not providing enough information to legislators
Top Ten Traps
Page 11
5. Getting too detailed4. Allowing your policies
to get out of date3. Not following or
delaying implementation of policies
2. Building it if you can’t maintain it
"Build it and the money will follow“ (Beaches, Parks & Recreation Director)
Top Ten Traps
Page 12
1. Not including a policy specifying use of one time revenues
Bonus Trap – Developing in “crisis” mode
Trap #1 !
Page 13
Review Examples(See Handouts)
• City of San Clemente
• City of Sunnyvale
• City of Long Beach
Page 14
Questions & Answers
• “I didn’t really say everything I said.”
– Yogi Berra
Illustrations by Pablo BarguenoCity of San Clemente, GIS Mapping Specialist
Page 15
Page 16
Page 17
