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Managing a local government means managing many different working parts. One of the most important parts is your choice of local government banking partners. Through your banking partner, you apply for loans to fund projects, deposit revenue, manage your debt, and more. If your banking relationship isn’t a strong one, your entire government body may suffer as a result.
If you’re looking to improve your bank relationships in 2023, keep reading. We’re breaking down three things local governments should keep in mind in the new year.
1. Challenging Financial Times Call for Better Strategies
The past few years have presented one unique challenge after another for local governments across the U.S. and around the world. One of the newest challenges that came about in 2022 was skyrocketing inflation. For local governments, this issue was two-fold. The cost of everything from new buildings to office supplies rose sharply. At the same time, residents in your town or city likely struggled with paying bills or taxes, which had an impact on your local revenue.
Experts are predicting that inflation will slow in 2023. However, the issue isn’t going to resolve itself overnight. Interest rates will remain higher than they were pre-2022. For local governments, the best thing that you can do in the face of ongoing financial challenges is to make sure that your finances and management of your finances are in order. From implementing a deposit structure to making sure that you’re getting the best terms on any loans, optimizing your finances in other areas can help make up some of the difference in the face of inflation.
2. The Government Often Moves Slowly—But Your Finances Can’t
Many government processes move slowly at every level. Often, review and approval are needed at multiple levels from multiple departments or branches before a new project can get underway, a law can be passed, or a rule amended. But this doesn’t mean that your local government’s finances can move slowly as well.
When you need cash to get a new development rolling, the last thing you want to do is prolong the process even more as you wait for credit approval. Working with a bank that provides a streamlined credit approval process can make it easier to keep your projects moving forward and avoid unnecessary delays.
3. Now is the Time to Get Green
The green revolution is here. There is growing demand from the public for green energy solutions. This means that if your local government isn’t already, it’s time to make moves to implement green solutions in your own infrastructure. You can lead the charge for your city by investing in green energy, including implementing green power technologies like wind and solar power, geothermal energy, etc.
Implementing these and other green energy solutions isn’t an inexpensive endeavor. But Commercial Property Assessed Clean Energy Financing (C-PACE), like that from Western Alliance Bank, can help. The company’s C-PACE financing includes 100 percent upfront financing for qualified green updates, longer loan terms, and repayments made through an assessment on your property tax bill. This can make investing in green energy solutions even easier.
Managing Your Local Government Banking in 2023
As a local government official or staff member, you know how important your banking relationship can be. With the many challenges facing local governments in 2023, it’s more important than ever before to consider your banking partners and whether they’re offering the solutions you need.