In mid-August, we spent two fantastic days with 75 city leaders from across the state learning about key fiscal management and budget issues. After a few years of holding the ever-popular workshop virtually, we were pleased to spend time in beautiful
Leavenworth hearing from city, state, and community leaders from all across the country.
Read these top 10 things we learned during the Municipal Budgeting & Fiscal Management workshop:
- Budgeting is a team sport
You don’t have to go through the budgeting process alone. City leaders should engage with department heads to help balance the proposed budget to ensure ownership of the outcome – it’s
a team sport!
- Find the right communication style
Everyone approaches a budget in different ways. Instead of expecting staff and elected officials to wade through hundreds of pages of documents, provide them with charts, graphs, summaries,
or even pre-recorded messages from department heads.
Making your budget more approachable can increase buy-in and support from
the community and city leaders.
- Engage with your community and incorporate an equity lens
Speaking about the community—Reach out to community and business leaders for their insights into the local economy. Their perspectives into the day-to-day economics
of your city can help as your city sets goals and objectives for the upcoming budget. Cities should also look for ways to engage with the community as a whole during the budget process. Incorporate an equity lens in your community engagement by encouraging dialogue between your city and residents to address historical and existing practices, improving communication among departments, and fostering more collaboration. Consider using your city’s communication
channels to share some of the charts or graphs you created earlier in the process.
- Keep a long-term, holistic view of your budget
Booms and busts are a consistent part of the economic cycle. As you plan your budget, take time to review past performance as you make decisions for the future. Nobody wants to be the one to budget for a boom year, only to see city revenues fall short. Temper your budgeting process by including data from the last several
years. This will ensure that your city is ready to weather potential upcoming storms.
- Inflation will have lingering impacts
2022 has seen record levels of inflation. Even as the rate of inflation begins to wane, it’s important to remember that new price floors have been set. If you have a department head
who submits the same budget year in and year out, you may want to ask them to reconsider their requests to account for higher costs moving forward.
- Compliance is key
No one wants to be on the receiving end of a financial finding from the State Auditor’s Office. City leaders and staff should take steps to ensure compliance with state laws and regulations around developing and adopting a city budget. December 31 is fast approaching, have you started your budgeting process?
- Finance and budgeting tools are available
Have you heard of interfund loans? Or TUFS? What about a biennial budget?
There are numerous finance and budgeting tools from AWC and MRSC that city leaders can consider as they go through the budgeting
process. These tools can help cities make smart financial decisions and ensure a balanced budget.
- Don’t forget about state tools and resources
While the SAO will go through your books, they also provide a plethora of resources and tools to help get your budget into shape. The recently revamped SAO website includes resources for internal controls, compliance, federal reporting, comparing your city's financial indicators,
and more. Want to learn more about piggybacking? They have a 14-page guide available for your
reading pleasure!
- Small cities are facing big challenges
We held a great roundtable discussion with dozens of city leaders from small and very-small cities around Washington. During the roundtable, we heard how these leaders are working to address
staffing issues, technology upgrades, improving community relations, and ongoing economic development. While their populations may be small, they face the same challenges and opportunities as larger cities across the state.
- Federal funds can play a pivotal role
The next several years will bring unprecedented levels of federal funding to cities across the country. ARPA funds are now fully in the hands of Washington cities big and small and city leaders have already begun planning and spending those
funds in their communities. The Bipartisan Infrastructure Law (BIL) presents an opportunity for cities to access federal funds for critical infrastructure projects in their jurisdictions. As cities consider their budgets, they should also consider what projects could benefit from these funds.
If you couldn’t join us this year, be sure to put a hold on your calendar for August 2023. This annual event is not one to miss!
