Township Working on 3-Year Budget Forecasting

is working to implement a three-year operating budget forecasting tool that would help the township committee plan for the future.

The committee discussed the tool at the May 22 meeting after Committeeman Scott Gallopo introduced it as a way for the township to get "ahead of the curve." He gave an example that if six police officers were to retire and the township were responsible for paying out sick time and there were savings from the officers' salaries and benefits, the township would be able to better predict what money is left and how to be able to use money more efficiently based on forecasting analysis.

Township Administrator Victor Canning said his staff would begin working on the forecasting once the current municipal budget is adopted. Gallopo said he is hoping the tool could be implemented by November, when the township will begin working on the 2013 municipal budget.

"We will be facing some headwinds in certain categories and I don't like surprises and I know you guys dont like them either, but thats what this tool is designed for," Gallopo said.

Commiteeman Don Kostka agreed that the tool is necessary.

"I think this is something that we need to pursue," he said. "It's really important for us to see the information laid out not only for this year, 2012, but looking forward."

Gallopo recommended the township's Long Term Financial Planning Committee (LTFPC) work on the tool, but Committeeman Jim Sandham said the LTFPC had created a similar tool, a strategic plan, in the past which included summaries from department heads. Sandham said that plan was scheduled to be updated frequently, but that if it was not updated, perhaps the information could serve as a template for the new tool.

Gallopo said there are two components to the forecasting.

"There's two pieces to it: one is a forecast and the other is a tool where you can do scenario analysis for the forecast," he said.

Committeewoman Deb Nielson said she was in favor of the forecasting but that she did not want to push too much on the township staff, realizing that the committee has rolled over a number of goals, like the three-year strategic budget forecast, from 2011.

"We have limited staff, but we had a number of goals," she said. "This is a top priority, I don't know if it's the top priorty."

Still, Nielson said she was in favor of the LTFPC working on the forecasting.