Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 65
Strategic → CiTy of eusTis shorT - Term finanCial Plan
City of Eustis Short - Term Financial Plan
Short-term financial planning is a critical aspect of managing the finances of a City. It involves carefully analyzing and allocating resources over a relatively short time frame, typically covering one
to three years. Effective short-term financial planning helps ensure that a City can meet its immediate financial obligations, maintain essential services, and respond to unforeseen challenges or
opportunities.
Following are key elements and considerations in a City’s short-term financial planning:
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Budgeting: The cornerstone of short-term financial planning is the city budget. The budget
outlines the expected revenues and expenses for the upcoming fiscal year. This process
involves estimating tax revenue, grants, fees, and other income sources and projecting expenditures for various City departments and services. The budget is realistic and aligns with the
City’s strategic priorities.
Cash Flow Management: The City manages its cash flow effectively to cover day-to-day
expenses, such as payroll, utilities, and debt service. A cash flow analysis helps identify periods
of surplus and potential shortfalls, allowing the City to appropriately adjust its spending or
invest excess funds.
Emergency Funds: Short-term financial planning includes provisions for contingencies. These
funds are set aside to address unforeseen events, such as natural disasters, economic downturns, or public health crises. Having reserves can help the city respond promptly and maintain
critical services without resorting to drastic measures like layoffs or service cuts.
Revenue Diversification: Short-term planning involves diversifying revenue streams, such
as increasing fees for certain services, pursuing grants, or implementing new taxes or user
charges while considering the impact on residents and businesses.
Cost Control: Short-term planning involves identifying areas where cost savings can be realized
without sacrificing service quality. This can include renegotiating contracts, optimizing staffing
levels, and exploring opportunities for shared services with neighboring municipalities.
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City of Eustis, Florida
Adopted Budget
63
