Do you have legislation I could introduce to help the city's accounting be more transparent? (Video)

This question was submitted to our helpdesk and we took some time during Members' Office Hours to offer some thoughts that would be helpful. 

I am about to be sworn in as a city councilman in Annapolis, MD and would like to champion some policy in line with the Strong Towns movement. To start, I'm especially interested in the Transparent Local Accounting. I read through some of the case studies. But do you have suggestions of legislation I could introduce to help the city's accounting be more transparent?

We encourage you to add your own thoughts in the comments below!

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Edward Erfurt also offered the following comments: 

Evaluating municipal finances from a Strong Towns perspective

Evaluating municipal finances from a Strong Towns perspective involves looking at the long-term sustainability of a city's financial practices.

Look at your city's balance sheet. The balance sheet or an audited financial statement will be in your annual budget document.

1. Is your community taking on a lot of debt? Is this debt intended to finance new infrastructure projects? If so, are these projects likely to generate enough wealth to pay off that debt, or are they just creating future liabilities?
2. Consider your community’s land use patterns. Is your community encouraging productive, mixed-use development, or are they subsidizing unproductive, single-use sprawl? The former can generate a lot of wealth for a city, while the latter can be a financial drain in the long run.
3. What is your community’s approach to maintenance. Are they setting aside enough money to maintain their existing infrastructure and buildings, or are they neglecting or deferring these obligations in favor of new projects? Deferred maintenance can be a ticking time bomb for a city's finances.
4. What is your community’s approach to growth. Are they pursuing a strategy of incremental development, gradually adding value to their existing assets, or are they chasing after big, transformative projects? The former is generally more financially sustainable than the latter.

Remember, a Strong Towns perspective is all about long-term financial sustainability. It's not about quick fixes or flashy projects, but about building a solid financial foundation for the future.

Greg Sund of Trinidad, CO offered additional thoughts that are worth reflection:  

Capital project accounting is different from the annual budget because when bids are let, it establishes the budget and the budget period is controlled by how long it takes to complete the project.  Hence if a project takes three years to complete, the capital project has a three year budget.  Capital Project funding typically requires the establishment of a separate fund for the project.  Capital Project Funding is not used for waters and sewer projects in most cases because these a usually considered utilities which are accounted for through enterprise funds, which are managed as businesses within the City.

And finally, two recommended articles on the topic: 

From Boring to Brilliant: Making Municipal Finance Fun with Michel Durand-Wood (podcast)

Talk is Cheap: How One City Hid its Intentions in the Fine Print

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