FY 2025 BUDGET BOOK - Flipbook - Page 58
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City of Eustis Short-Term and Long-Term Financial Plans
City of Eustis Short-Term Financial Plan
Short-term financial planning is a critical aspect of managing the finances of the City. It involves
carefully analyzing and allocating resources over a relatively short time frame, typically one to
three years. Effective short-term financial planning helps ensure that the City can meet its
immediate financial obligations, maintain essential services, and respond to unforeseen
challenges or opportunities.
Following are key elements of the City’s short-term financial planning:
➢ 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. Setting these funds aside can help the City respond
promptly to emergencies 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
cities.
➢ Reserve Policies: The City has policies that dictate the amount and use of reserves. Shortterm financial planning incorporates this policy to maintain fiscal responsibility and
accountability.
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