Rotation #4: Finance

Today was a fun day, because I got to spend it working on public finance. :) While that may sound strange to some, my concentration in the masters program was in public and non-profit finance. The program covered public finance, taxes, investments, and debt management. Needless to say, I was excited to flip through the Marana Comprehensive Annual Financial Report and Annual Budget & Financial Plan.

The finance department is headed by Erik Montague, and I spent the day with Meghan Doherty, the finance manager.

Responsibilities of the Finance Department

The department is in charge of accounts payable, payroll, general ledger, maintenance, reconciliations, keeping records in compliance with GAAP standards, overseeing purchasing and procurement, business licensing, and filing local sales taxes. It is important to note that Marana does not collect local sales tax, the state does. The state then turns over the local sales tax revenue to Marana after processing it.

Budgeting is one of the biggest priorities of the finance department. There is a long process that begins with a Budget "Kickoff" meeting and followed by meetings with the council and the departments. The Council Special Session usually occurs in January, and the recommended operating budget is not put out until April. The final budget is expected to be adopted by mid-June.



Just when you think you're done, you're starting all over again.

 Marana Finances
You can tell a lot about a government entity by looking at their financial statements and budget plan. Certain questions can be answered such as; how much debt do they have? What is their greatest revenue source? What are the costs of their programs? How much funding goes toward major services? What kind of capital projects are being planned for the future, and how will that effect taxes?

In the wake of the recession, Marana has been very conservative with their finances, and currently holds an impressive reserve that has allowed them to continue operating without going into a deficit. The reserve also indicates that Marana is aware of the ebbs and falls of economic cycles, and will be prepared for future recessions.

TAPE Measure Project

I had the opportunity to start a TAPE measure project for the finance department, which involves looking at surrounding jurisdictions and comparing certain financial indicators. The name is an acronym that stands for Trend Analysis and Planning with Effective Measures, and it is an evaluative tool that started in Peoria, Arizona. The project requires calculating the sales tax revenue, expenditures, employees, and general obligation debt per capita in Marana, and comparing the numbers with Tucson, Sahuarita, and Oro Valley over the past five years.

The purpose of TAPE Measure is to evaluate and monitor Marana's financial performance. By looking at trends over time, financial analysts can identify potential problems as well as see how Marana measures up to comparable governmental jurisdictions.