Strategic Planning

We customize strategies that:

• Identify potential future fiscal problems (hidden problems)
• Formulate contingency plans
• Devise pre-emptive measures to mitigate tax spikes
• Enhance fiscal policies

Identify Future Fiscal Problems

No one likes surprises, least alone taxpayers. While most constituents accept that cost of living increases are often necessary, one-shot tax increases due to an unforeseen spike in operating costs are deemed unacceptable. We at Liberty recognize that it’s all about contingency planning. Even though the specific causes of a fiscal problem may vary, the potential impact on a municipality’s budget often remains the same: tax cap piercing tax increases.

Formulate Contingency Plans

The concept of gaming through alternatives is the instrumental follow-through after risks are identified. It does not take newly elected officials long to learn that having a Plan B or “back-pocket” alternative to a potential problem can be incredibly effective when, out of nowhere, problems can surface.

Devise Pre-Emptive Measures

Solutions for one specific challenge often translate into answers for another totally different challenge. Cost savings in one budget category can enable support for a program or service in another. For example, Liberty recently assisted a municipality in achieving savings of more than $600,000 in healthcare costs (1% of their total budget), savings that off-set increased structural costs for pension and debt service. Although preemptive measures do not guarantee similar savings for all municipalities, they tend to position municipalities for better fiscal health.

Enhance Fiscal Policies

We believe strategy driven fiscal policy is the most powerful way to demonstrate financial leadership. Properly formulated, it becomes a concise agenda for both constituents and management. For example, a school district engaged us to evaluate its bond refinancing opportunities.

Working with this client, we quickly became acutely aware of their constituents’ concerns over issuing debt for capital projects costing less than $100,000. Our solution was to devise a pay-as-you go capital program funded by the annual debt service savings resulting from refinancing one of its bonds. Liberty created a complete tax- neutral capital program that met constituent demands by eliminating unnecessary borrowing and provided management with a funding vehicle with which it completed necessary repairs to school district infrastructure. Although we cannot guarantee similar results for all municipalities, we work with you to formulate custom fiscal policies that serve your specific needs.