PLAN103 Lecture Notes - Lecture 5: Operating Expense, Public Participation, Cash Flow
23 Mar 2016
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Plan 103 tuesday february 5, 2012 municipalities have a structural funding problem. Helps anticipate what costs will be incurred and what revenue is available. Strategy to identify what services can be provided over the long run, Understand what trade-offs are necessary, process where politics plays out, Who gets what: every decision is political, there are limited resources with many stakeholders and every decision has an opportunity cost. Public participation component, need to understand what people want, allocating public funds they get input on what their own money is spent on. Monitor cash flow and costs, must keep updated to adjustment in costs. Types: line item (incremental) cost related to commodities (cost control) Inflexible, not incentivized to spend less: program(performance based approach) cost related to workload (are we meeting our goals?) Builds in cost control at how successful program is at meeting objectives and is cut if they don"t, but can be inequitable despite efficiency, must look at non-financial, welfare side.
