Understanding Financial Health: A Key Tool for Cities and Towns

This article emphasizes the importance of utilizing the "Financial Indicators Dashboard" developed by the Financial Management Resource Bureau to analyze past trends, track key financial and demographic indicators, and make data-driven decisions for long-term financial stability and strategic planning in municipalities.

Author: Zack Blake - Financial Management Resource Bureau Chief

Cities and towns often face the challenge of planning for the future amid financial uncertainties. To effectively prepare budgets and ensure long-term financial stability, it’s critical to understand how past trends have shaped the current financial landscape. The "Financial Indicators Dashboard" developed by the Financial Management Resource Bureau offers a powerful solution, providing a comprehensive business intelligence tool that allows local officials, residents and other stakeholders to visualize, track, and report on key financial and demographic trends.

This resource compiles data from various sources, including the annual Tax Recapitulation report and Schedule A submitted to the Division of Local Services, along with other state and federal databases, offering a holistic view of a community’s finances and demographics. Key features include tracking property tax revenues, operating expenses, state aid, local receipts, and other critical indicators such as debt service and enterprise funds.

The dashboard is essential for local officials and residents alike, enabling them to:

• Analyze Financial Performance: It provides a clear understanding of income sources and expenditure patterns, empowering decision-makers to identify potential areas of fiscal stress or growth.
• Inform Policy Decisions: By examining trends in population demographics and school enrollment, municipalities can make informed decisions about resource allocation, ensuring services are aligned with community needs.
• Plan for the Future: The tool helps local officials set realistic financial goals and allocate resources effectively, based on past performance and current trends.

Ultimately, this dashboard equips cities and towns with the knowledge to make data-driven decisions, enhancing their ability to plan strategically and maintain fiscal health.
 
If you are interested in having the Financial Management Resource Bureau build a Financial Indicators Dashboard for your community, please reach out to Zack Blake at [e-mail].

Helpful Resources

Municipal Finance Training and Resource Center  City & Town Data Visualizations & Reports  Subscribe to DLS Alerts 

City & Town is brought to you by:

Editor: Dan Bertrand

Editorial Board: Marcia Bohinc, Linda Bradley, Tracy Callahan, Sean Cronin, Emily Izzo, and Tony Rassias

Date published:	September 19, 2024