Memo Presentation, Case Study Example

To: The City Administrator

From: City Finance Manager

Re: Proposed Recommendation of Solutions for the Current Economic Situation of Timber City

Background of Issue:

It has been an impending source of disappointment and economic worries that the financial status of the county in relation to the economic performance of Timber City does not look as promising as it should be in the face of worldwide existence of recession. In fact, it is not just the Timber City that basically experiences this particular matter. Nevertheless, this memo shall be focused upon the current situations that the city is facing and how specific measures of recommended solutions could help provide ease to the current hardships of the city, its government and its people.

TO note, there are several issues that ought to be given attention in relation to the economic status of the city that is to be handled in this memo [along with the discussion of the issues is the presentation of the possible solutions that could be taken into consideration to provide answer to the current dilemma of the community]:

• The lowered revenue from the operation of milling industry in the city resulting to unemployment: The fact that the industry is not performing well opens up to another aspect of the issue which is the impending rise of number of unemployed individuals who are likely to be laid off from work just to be able to support the need to retain mill-operations within the city.
• Shifting the city’s industrial operation from being focused on milling to other forms of job-producing operations: This means a shifting of workforce from one industry to another which could cause a sense of panic on some individuals who might not have the right capacity and ability to face the said challenge.

It should be noted though that in relation to the recommended solutions to be presented herein, it is the utmost concern of the financial manager and the city council to save what could still be saved and protect what could still be protected.

• Imposing tax adjustments to basic commodities to compensate for the losses: While it is seen that the laying off of workers might cause downfall on the capacity of the people to buy, increasing tax rate at a reasonable price that the people could still afford could help replenish what is lost and later on play a great role in returning the balance of the city’s economy.

In the face of economic down-trend, it could not be denied that there would be always a part of the solution that would not be compellingly acceptable to everyone in the society. Nevertheless such sacrifices need to be given attention to and should be accepted as a sense of sacrifice. The idea of conceding to these decisions at present is expected to create more refined conditions in the future.   It shall not be denied in this presentation then that the decisions taken into closer concern are needed and are not going to be as pleasant as desired for everyone else, however, taking them into consideration is essential for the community to survive the current economic challenge it is facing now.

Recommendations:

In consideration with what the city’s financial managers have advised, it has been noted that laying off some employees would be necessary especially in the desire of retaining the function of the city’s mill facilities. Relatively, this would mean at least 13% of the working labor being placed out from their regular functions in the mills. Nevertheless, it is planned that the individuals to be laid off be given specific compensation to give them a chance to start on their own financial resources for the family.

To support the lives of those who shall be laid off, a specific process is being examined at present which is related to creating new industries that the city could start with. It is not expected that the said new industries would create as high revenue as to what the mills are producing, nevertheless, the amount of income to be collected is expected to support the economic needs of the city at present.

Tax adjustments is also seen to have a great impact on the current situation that the city faces. This may not be as convenient as desired especially for those who are to undergo career shifts. Nevertheless, it is needed for the city to incur better position in gradually regaining revenue and having the monetary fund flowing into the system amidst the impact of international recession occurring at present. The need to save the city’s economic foundation is essential. To regain balance between revenue and expenses, the city’s financial aid and management authority should be able to set a standard revenue that shall compensate with what has been lost in the past.

In consideration with the range-estimate of the suggested solutions, it is very important that the city residents and the administrators face the hardships on a much cooperative manner. Relatively though, the risks of having people protest about the matters being proposed herein is not being denied. Nevertheless, having the people understand the necessity of these steps to secure the overall future of the city and its stand in the face of national economic challenges should be established in the hope of getting the community to agree with the solutions that are recommended herein.