Ante Up: Rational Budget Reductions

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Ante UpRational Budget Reductions

• GFOAT Spring Conference
• April 21, 2009
• Matthew B. Garrett
• Director of Finance

Prosper is a place where everyone matters.
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Where is Prosper?
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Town of Prosper Population
Source Population estimates to date are from
North Central Texas Council of Governments
Future estimates are from Town of Prosper Staff
(as in business plan)
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Property Valuation History
Source Collin County Certified Tax Rolls
2002-2008
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Sales Tax History
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Budget Cutting Technique

• My simple solutionnot quite a silver bullet.

• Its all in the wrist.

FY 2009-10 Budget Cutting Board
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Ask the People Who Do It!

• Whatever level people serve, staff with direct
  involvement know operations better than us.
• Its OK to admit it.
• Explain the need for cuts and ask departments to
  dig deep.
• Many will step up and surprise you.
• Others may throw tantrums.
• Still others may absolutely need their current
  funding.

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Be Candid About Service Levels Priorities

• Its tough times, so ask tough questions.
• Review the standard staffing ratios
• How many __ staff does it take to do __?
• Review best practices or guidelines cited as
  mandates
• Question any grey area purchases
• Just knowing someone is checking the details
  periodically encourages self-policing
  expenditures
• Take the opportunity to probe

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Keep Cut Discussions in Context

• Frame each conversation within the organizational
  objectives and citizen priorities
• Bring disputes before the City Manager in an
  organized meeting
• Give dissenting departments air time during
  budget workshops with Council
• Hard feelings happen, but they can be mitigated
  if given a chance to speak

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Pinch Pennies Again

• Being penny-wise isnt always pound-foolish
• Dig into invoices and pull anything with obvious
  alternatives
• Example

Xerox Costs per Page
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Pinch Pennies Again (Contd)

• Why Bother? Heres why.

Please be cognizant of your need for color
printouts prior to submitting any print/copy
jobs.
Your Friendly Bean Counter
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Look Up Occasionally and Review

• Its easy to keep your nose to the grindstone too
  long.
• Especially wearing several hats.
• Check your wake after tackling multiple projects
  simultaneously.
• Example of two software modules we didnt know we
  had.

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Maximize Use of Technology

• Look to IT staff for solutions
• Outsourced in Prosper
• Maximize Use of Technology
• Fixed base meter reading

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Step Up Lead

• "If you don't choose to do it in leadership time
  up front, you do it in crisis management time
  down the road. -Stephen Covey
• Our organizations can either be led down a safe
  path into and out of this recession or be cast
  over the cliff and hopefully limp out.
• Good luck leading yours!