Transcend Finance LLC

𝗠𝘂𝗻𝗶𝗰𝗶𝗽𝗮𝗹 𝗕𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝗦𝗲𝗮𝘀𝗼𝗻 𝗶𝘀 𝘂𝗽𝗼𝗻 𝘂𝘀! Over the course of the next few weeks, I'll be outlining some helpful strategies for municipalities to achieve an excellent budget outcome. 𝗧𝗜𝗣 𝟭: 𝗖𝗼𝗺𝗺𝗶𝘁 𝘁𝗼 𝗮𝗱𝗼𝗽𝘁𝗶𝗻𝗴 𝗮 𝗯𝘂𝗱𝗴𝗲𝘁 𝗽𝗼𝗹𝗶𝗰𝘆 𝘁𝗵𝗮𝘁 𝗲𝗻𝘀𝘂𝗿𝗲𝘀 𝗮 𝗯𝗮𝗹𝗮𝗻𝗰𝗲𝗱 𝗯𝘂𝗱𝗴𝗲𝘁 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲. It’s essential for recurring revenues, such as property taxes and water/sewer fees, to meet or exceed recurring expenditures. However, many municipalities opt not to raise taxes or rates to cover operational costs, instead relying on nonrecurring sources like reserves to fill budget gaps. While this might appease voters and get officials re-elected, it is not a sustainable financial strategy. Inevitably, this approach leads to a crisis, where taxes or rates must be dramatically increased, often causing public outrage and shock. Alternatively, municipalities might be forced to reduce service levels to manage deficits. A sound budget policy focused on fiscal responsibility can significantly improve the dialogue around necessary tax adjustments and rate increases, helping to ensure long-term financial stability.

Excited to be attending the Pennsylvania Municipal Authorities Association Annual Conference in a few weeks. We are looking forward to getting to know fellow members, learn more about the intricacies of Authorities in PA, and show how we can empower municipalities through financial excellence!