Effective communication among committee members, as well as with town department heads and voters, can help improve the local budget process.

This and other strategies to improve the effectiveness of finance committees were discussed at the Annual Meeting of the Association of Town Finance Committees in Franklin on Oct. 20.

ATFC President Joanne Marden, a finance committee member in Andover, suggests that finance committee members ask two questions when considering their recommendations:

1. “What’s our definition of success?”

2. “Are we providing the desired public services?”

It’s important to know your goals, she said, but it’s also vital to examine if the goals are meeting the town’s needs.

After all, she said, “providing desired services is the real purpose of town government.”

The budget process can be complicated, Marden said, but taking the time to make sure every member understands it pays off in the long run. Every member should know how the tax rate is set and understand who makes financial and managerial decisions.

Written financial policies and short- and long-term goals should be understood by everyone on the committee and frequently updated throughout the year, she said.

Andrea Llamas, a finance committee member in Conway and town administrator in Buckland, also stressed the committee’s role to educate each other, especially for new members.

“It’s critical that finance committees understand their limits and how to deal within their limits,” she said.

Knowing your town’s history can also help you understand your role and the committee’s relationships with other departments, Llamas said. This will help new members easily transition into their roles.

Developing strong relationships with department heads is another strategy that finance committee members can use to smooth the budget process. Sensitivity should be used when sitting down with department heads and discussing numbers, said Marden.

“Numbers are numbers, but there’s a lot of emotion behind them for some people,” she said.

Llamas recommends having liaisons in each department who can foster a relationship and communicate their needs back to the finance committee. Each liaison should attend his or her assigned department’s important meetings and join other committees in the town as well.

A good working relationship with town departments gives the finance committee valuable insight when it comes to preparing the budget and saving for the future.

Communicating outside of town hall is just as important when it comes to getting people on your side, which, Marden stresses, should not wait until town meeting.

Written reports, broadcasts of meetings, press releases, speaking engagements, and the town website are just a few ways committee members can reach out to voters, who, for the most part, don’t know much about the role of a finance committee.

A strong presence in town is important, Llamas said. The more involved you are, the more trust the community will have in you at town meeting when your recommendations are up for approval.

The ATFC Annual Meeting also featured a discussion of consolidating and regionalizing services as well as workshops on the basics of municipal budgeting, building and facilities maintenance consolidation, town credit and bond ratings, revenue analysis and forecasting, and energy cost saving opportunities and best practices.

Download materials from ATFC Annual Meeting sessions

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