CC 2020-02-25_11a Ten Year Fiscal Forecast_PP Presentation
General Fund 10-Year Fiscal Forecast
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Budget Goals
Prepare for the City’s 2021 Budget planning process with the 10-Year Fiscal Forecast.
Discuss the Economic Outlook.
Explain the Budget process.
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Overview of Presentation
1. Assumptions
2. Revenue
3. Expenditures
4. Discussion and validation of forecast
5. Review next budget steps
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CITY PRIORITIES
Maintaining Infrastructure
Paying off CalPERS Unfunded Liability
Controlling costs
Sensitive Revenue Estimates
Unpredictable Economic Impacts
Remaining competitive as an Employer to attract a talented workforce
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Notable Expenses
Monthly
Yearly
$20,000 street lights and stop lights
$9,000 - PG&E bill for Soto Field Lights
Gas / Oil – $102,200
Software Licenses - $80,000
Public Noticing - $12,000
$500,000 annually for liability insurance
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Sales Tax Distribution
Sales Tax 7.75% on taxable goods only
Total Sales Tax $6.14
State $3.12
County $1.83
City $1.19
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Property Tax Distribution
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What You Pay For
24/7 Police Services
24/7 Fire Services
Parks and Open Spaces
Well maintained roads
Street lights
Neighborhood Services
Infrastructure
Accessible and transparent government
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What Does It Indicate?
Surplus in all years of the 10-year Forecast
Surplus realized with positive ranges from $80,000 to $532,000
Reserves remain positive and reach 20 percent target level in FY 2022:
Continue to control expenditures
Continue to monitor economic changes
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What’s Driving Expenditure Increases?
Public Safety for the community
CalPERS costs
Infrastructure necessities
Seek to remain a competitive employer
Growing unfunded liabilities and retiree healthcare costs
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Positive Outlook
1/23/2018
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Conclusion
General Fund surplus over next ten years with Fund Balance reaching target level in 2021-22
All Cities are facing the need to increase revenues in order to maintain infrastructure, attract a talented workforce and payoff CalPERS Unfunded Liabilities
Monitor revenue sources as well as update revenues and expenditures based on new information to complete 2021 Budget
Seek to meet goals over next ten years
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Next Steps and Key Dates
Operating and CIP Budget meetings with staff – February 26
Draft Budget – March 23
Distribution of Preliminary Budget– May 5
Preliminary budget presentation – May 12
Budget Adoption – June 9 (June 23 if needed)
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