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Review Memo Two.

Access and review the Hadleyville Budget Briefing Books.


Discuss the following information.

Complete the following in 250-500 words:

  1. Provide an analysis of how the town budget will be impacted by the town’s financial crisis.
  2. What are your initial thoughts on ways to minimize the impact of the financial crisis to critical town services?


Prepare this assignment according to the APA guidelines found in the APA Style Guide.






October 5, 2010

TO:Budget and Finance Teams

FROM:Jack Sprague, Town Manager

RE:Town Financial Crisis Update

The Water and Sewage Department and the Economic Security Department, who handle jobless benefits, are in desperate need of examination and adjustment. We have spent some considerable time with both of these departments, and would really like your analysis to help make some difficult decisions.

The Water and Sewage Department is somewhat unique in that it is supported entirely by user fees. We have provided you with some analysis and projections of user fee revenue for both drinking water production and water reclamation and treatment. We’ve also provided some projected expenditures for the next 3 years, including a significant capital outlay project the town council has approved – the construction of the Hadleyville Water Treatment Plant and Reservoir. This project is politically very sensitive, and I’ll be honest with you, I don’t think taking it off the table is an option. However, what you may explore is a different timeline or different priorities in budgeting that can help make the project more successful given the budget constraints. We know that user fees will need increasing, but as you can imagine that isn’t the most popular route we can take. We’d like to hear your recommendations for reigning in operating costs as much as possible.

The Economic Security Department handles quite a few federal programs for the town in aIDition to locally-funded programs. We have some initial projects for federal resources that we see increasing over time and perhaps some opportunities for new federal revenue in the very near future. Specifically, we’d like you to see if operating costs can be brought in line with revenues while maintaining a high level of service and providing as much service as possible through these aIDitional federal resources. Be as specific as possible in your recommendations. Your Budget Briefing Book will have more detail on the current state of both of these department’s operating budgets and the key decision points that the council will need from your recommendations. As you develop the specific recommendations for these two departments, my hope is that it will help inform your larger decisions surrounding the town’s overall budget.


1)    Summary Analysis of Financial Statements

a)     Summarizes all relevant information.

b)    Evaluates town’s financial position.

2)    Analysis of Impact of Financial Crisis on Town Budget

a)     Identifies stated effects of financial crisis on town budget.

b)    Identifies implied effects of financial crisis on town budget.

3)    Recommendations

a)     Makes suggestions for lessening impact of financial crisis on town budget.

b)    Rationale for suggestions is well supported through application of course concepts.

4)    Mechanics of Writing

a)     Student is clearly in control of standard, written academic English.

b)    All work includes correct spelling, punctuation, and grammar.




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