Leveraging Financial Resources
Long Range Financial Planning Update
PRESENTED TO MECKLENBURG BOARD OF COUNTY COMMISSIONERS
JANUARY 27, 2016
Leveraging Financial Resources
◦Linkage to County Strategic Plan
◦Long Range Financial Planning Tool
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Leveraging Financial Resources
Leveraging Financial Resources
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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Leveraging Financial Resources
Sounds Simple, but in Reality it is Complex
Leveraging Financial Resources
A Building Block to Success
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Leveraging Financial Resources
A Balancing Act of $ and Time
Leveraging Financial Resources
Leveraging Financial Resources
Priorities and Constraints Inclusive of
Legislative Mandates
Capital/ Maintenance
Economy/ Fiscal Policy
County
Services
Education
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Leveraging Financial Resources
Competition for Resources
Leveraging Financial Resources
Necessary Tool – Long Range Planning Model
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Leveraging Financial Resources
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
Leveraging Financial Resources
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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Leveraging Financial Resources
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)
Leveraging Financial Resources
LRFP – Uses (examples)
◦ Current and future CIP capacity
◦ Balance of PayGo and Debt Financing
◦ Balance of “fixed” commitments and “discretionary spending
opportunities”
◦ Economic impact of future legislation (example – Sales Tax
redistribution)
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Leveraging Financial Resources
County is currently building a LRFP Model – Anticipate a May 2016 implementation
◦ Quantrix model which will integrate with budget, accounting, debt, and
capital 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 and
perform sensitivities
Leveraging Financial Resources
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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Leveraging Financial Resources
Leveraging Financial Resources
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Leveraging Financial Resources
Leveraging Financial Resources
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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