Bottom-Line Budget Gets the Job Done The balanced budget passed with a unanimous vote Tuesday, March 25th by the Redford Township Board of Trustees. The 2014/2015 budget is $28,638,499. It is $4,158,232 less than requested from the departments and is also less than the 2013/2014 fiscal year budget. These adjustments will stave off a budget deficit. We did what was necessary: we tightened our belts. The best part is that we will avoid a budget deficit without increasing the burden on our residents – that’s what really matters for our community. As you are aware, I adopted an innovative strategy to reach a balanced budget. Rather than going line-by-line for each department, I presented them with the bottom-line number they needed to work toward in order to avoid going into the red. We couldn’t continue with business as usual, so I adopted this unusual strategy. It was uncomfortable for some departments and for some of the other elected officials. Even so, I believe it really helped put the Township’s potential financial problems in perspective, and in the end it got the job done. When developing the budget for 14/15 I looked at several variables, including comparisons to other communities, recommendations from the October 2013 financial visioning sessions, and past decisions by the Board of Trustees to arrive at each department’s bottom-line budget. I credit those visioning sessions for bringing to light the impending $10 million deficit over five years. We had the opportunity to receive expert interpretation and information from our auditors, validate our financial position, all the while working with community members, business leaders, employees, labor groups and elected officials to identify key problems and brainstorm solutions related to the deficit. Those sessions were eye-opening, and because we more clearly identified the challenges and had the opportunity to turn things around. The goals that emerged from the October financial visioning sessions were to increase revenue, improve services and show a 9% reduction in spending across all departments. While we were not able to meet the 9% reduction, we did make reductions which put us on the right track toward fiscal sustainability. Part of the bottom-line budget tactic was to get the Trustees to actively engage in policy decisions and think outside the box. We needed to confront the problem and work collaboratively toward solutions. In a time when many municipalities are experiencing financial trouble, including consent agreements and Emergency Financial Managers Redford Township was able to identify their problem early and take some necessary measures to fend off our own financial crisis. And what’s next for the Township? This year was step one. Now we hold the line with the established budget, monitor the expenditures and move forward while we continue to implement innovative strategies that allow us to move from simply having a balanced budget sheet to reducing the unfunded liabilities and eventually to creating a rainy day fund. For the next few days, I will relax and sleep easier knowing that the Department Directors, Chiefs and elected people in Redford Township got the job done this year.
Posted on: Thu, 27 Mar 2014 14:30:09 +0000
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