Curtis Coonrod: Tips for Local Government Budgeting Practices

Curtis Coonrod, an Indianapolis-based Certified Public Accountant, has spent more than four decades helping local governmental units across Indiana strengthen their financial management practices. As principal of Curtis L. Coonrod & Company, he works closely with towns, cities, counties, and townships to navigate complex regulatory requirements, prepare compliant financial statements, and avoid revenue losses linked to property tax shortfalls and annexation impacts. His expertise is rooted in a career that includes auditing and government-focused leadership roles at Ernst & Young, KPMG, and BKD, as well as serving as assistant national director of government at KPMG’s New York office. Through his firm, Curtis Coonrod supports local governments in interpreting Department of Local Government Finance and State Board of Accounts guidelines, helping them build more resilient budgeting systems. In this context, he highlights best practices that enable municipalities to create responsible, transparent, and community-centered budgets.

Tips for Local Government Budgeting Practices

When it comes to the success of a municipal government, especially smaller town governments with limited resources, few processes are as important and impactful as developing an adequate budget. A municipal budget reflects the government’s vision of the future while addressing the community’s most pressing needs. By adhering to a few best practices, local governments can improve their chances of maintaining a workable, successful budget.

To begin, municipal finance leaders must understand common challenges that impact a town’s budget. The volatility of economic cycles means that government officials must develop budgets that account for revenue streams that rise or fall in response to uncertain conditions. Limited citizen engagement and hostile relationships between the public and council members can result in a lack of support for local officials. Other common challenges include a lack of collaboration across departments, insufficient real-time budget tracking, and reduced productivity due to manual data entry errors.

Fortunately, many best practices can help municipal governments overcome these and other budgetary challenges. For example, towns should create and revise budgets each year using a clearly defined process. Town leaders should plan the upcoming year’s budget well in advance, follow well-defined steps when assessing and developing it, and engage in transparent approval processes. Municipal governments usually pass annual budgets, but should also evaluate budget performance monthly.

Visual representation can help solidify reliable, year-round budget processes. Popular examples include flowcharts, timelines, and budget calendars. Municipal leaders can enhance these visuals by highlighting key deadlines and milestones, integrating required action items, and clearly listing all involved personnel at each phase.

As mentioned, a budget represents the government’s vision, which leaders should develop in response to citizens’ needs. With this in mind, finance leaders should not approach a new budget purely from a fiscal perspective, but by defining the town’s most pressing needs and hopes for the future, then translating that vision into revenue and expenses.

This process can help alert government workers to conflicting, potentially costly goals. With this in mind, the best budgeting practices must enable government leaders and citizens to prioritize certain expenses over others. In some cases, budget leaders may need to delay a specific goal for a year or more to address more urgent needs, such as severe infrastructure issues.

The importance of engaging citizens in the budget-making process cannot be overstated. However, elected officials must meaningfully engage their constituents rather than hold token town meetings that lack transparency and productive dialogue. Communicating clearly with the community can help citizens understand budgetary trade-offs, thereby reducing the likelihood of fighting against and delaying potentially beneficial developments. On the other hand, town leaders may realize that citizens do not want a project or service that might entail considerable expense for the town.

Best practices can help government officials build trust with their supporters. In addition to transparency and simplicity, finance professionals should use infographics and interactive charts to explain complex financial information. While holding town meetings is important, governments must consistently and repeatedly share important budget information using various channels, from posters and signage to social media platforms.

Lastly, town leaders should never stop learning how to serve their town better and to develop budgets that meet citizens’ needs. Continuing education can help finance professionals hone their skills and stay up to date on the latest technologies.

About Curtis Coonrod

Curtis Coonrod is a Certified Public Accountant and principal of Curtis L. Coonrod & Company in Indianapolis. With extensive experience helping municipalities comply with State Board of Accounts and Department of Local Government Finance standards, he advises local governments on budgeting, financial reporting, and revenue preservation. His background includes auditing roles at Ernst & Young and KPMG, as well as specialized expertise in property tax revenue analysis.
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