The next topic in this discussion of building a healthy community lies with the financial planning and management.
It will focus on local government financing given that’s where we mostly identify. What also is important to understand is that any elected governance board or council is the strategic arm of the organization. They have the responsibility for establishing the vision and priorities of their community, including the financial requirements and impacts, along with building the community understanding.
A basic premise: This is not a simple discussion because there are many factors involved in public financing. The one thing from my perspective that is required is the need to have an active and engaged planning process in place that drives the financial planning and investments of the public entity. It also brings alignment to the work of the governing organization with the vision for the community.
The process: Although there are variations, the planning process needs to identify the vision for the future of the community. It often then will embrace a set of strategies that drive their thinking i.e., quality community services will be provided, a sense of community will be emphasized, their history and heritage will be valued, property taxes will be well managed, etc.
It can also identify a set of values that will serve as the basis for future community development and decision making. It will define a mission for the organization that will show what and how things will be accomplished and then priority goals will be identified that will align and support the vision of the community. To support that goal setting will be a capital improvement plan that will identify, often over a five-year term, the sizeable expenditures that will be required to support the vision of a community. This is where the governing body can begin to plan for the financial impacts of this planning result, including people resource requirements. Now the financial requirements and impacts can be identified.
Community communications: Now that the plan is in place for the governing body, it needs to be shared with the community again and again and again. All elements of the plan need to be shared to bring understanding of where the public entity is headed, and what it will take to get there. That includes financial impacts. This community understanding of their future is really important to build.
Measures and metrics: As with any strategic plan, a set of measures or metrics should be established to assess progress in relation to the established goals. Maybe it’s a dashboard that shows each goal and progress against that goal. Maybe one of those goals is financial related and how are we doing against the capital improvement plan or the budget. Maybe it’s related to the local city or county percent of the tax dollar. Maybe quarterly or biannual public council or board reviews would be beneficial to generate more community awareness. And, again, sharing this with the community is a tremendous community trust and confidence builder because it should avoid future financial, tax-related surprises.
Optimistic future: This entire discussion of public finance planning and management is about looking to the future. The communication and planning for that future should include the impact of new building and tax base growth that has been occurring or planned. The impact of that tax base growth may be out a couple years or more, but it will have a very positive impact on property taxes. That too needs to be understood by the community. That provides some hope for the future, as taxes increase today.
Other factors: Two things should also be pointed out. One is that the make-up and goals and strategies of a governing body’s strategic plan can differ from one city council or county board to the next council or board. That can have an impact on future investment decisions. That doesn’t make one right or wrong because influencing factors can change. This may be an opportune time, when such change is being made to a strategic plan or policy, to communicate to citizens the change and any impacts.
Another significant point to share, as public finance is discussed in terms of building healthy communities, is that the financial tools that were available to local units of government years ago, have changed significantly. This frankly has limited the possibilities available to local government today to finance large public projects.
Summary: There are many things to be proud of in our hometowns, but the ability to achieve quality results and manage property taxes is a valid citizen expectation.
Long-term thinking and planning and alignment of investment decisions and organizational effort, that support the outcomes of that planning, makes a lot of sense. It does require a priority commitment by the unit of government. This approach has been a key to private enterprise success and the same holds true on the public side.
What follows is measuring progress on those investments which in turn builds community understanding and hopefully support. That community understanding and alignment is absolutely enabling to local government. The focus on long-term thinking, planning, community communications and measures provides hope for the future of any community to achieve successful results and make progress in support of its vision.