Provide an analysis of how the town budget will be impacted by the townâ€s financial crisis.What are your initial thoughts on ways to minimize the impact of the financial crisis to critical town services?
Review Memo Two.
Access and review the Hadleyville Budget Briefing Books.
Discuss the following information.
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Complete the following in 250-500 words:
Provide an analysis of how the town budget will be impacted by the townâ€s financial crisis.
What are your initial thoughts on ways to minimize the impact of the financial crisis to critical town services?
Prepare this assignment according to the APA guidelines found in the APA Style Guide.
October 5, 2010
TO: Budget and Finance Teams
FROM: Jack Sprague, Town Manager
RE: Town Financial Crisis Update
The Water and Sewage Department and the Economic Security Department, who handle jobless benefits, are in desperate need of examination and adjustment. We have spent some considerable time with both of these departments, and would really like your analysis to help make some difficult decisions.
The Water and Sewage Department is somewhat unique in that it is supported entirely by user fees. We have provided you with some analysis and projections of user fee revenue for both drinking water production and water reclamation and treatment. Weâ€ve also provided some projected expenditures for the next 3 years, including a significant capital outlay project the town council has approved â€“ the construction of the Hadleyville Water Treatment Plant and Reservoir. This project is politically very sensitive, and Iâ€ll be honest with you, I donâ€t think taking it off the table is an option. However, what you may explore is a different timeline or different priorities in budgeting that can help make the project more successful given the budget constraints. We know that user fees will need increasing, but as you can imagine that isnâ€t the most popular route we can take. Weâ€d like to hear your recommendations for reigning in operating costs as much as possible.
The Economic Security Department handles quite a few federal programs for the town in addition to locally-funded programs. We have some initial projects for federal resources that we see increasing over time and perhaps some opportunities for new federal revenue in the very near future. Specifically, weâ€d like you to see if operating costs can be brought in line with revenues while maintaining a high level of service and providing as much service as possible through these additional federal resources. Be as specific as possible in your recommendations. Your Budget Briefing Book will have more detail on the current state of both of these departmentâ€s operating budgets and the key decision points that the council will need from your recommendations. As you develop the specific recommendations for these two departments, my hope is that it will help inform your larger decisions surrounding the townâ€s overall budget.
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