General Fund Long-Range Financial Forecast

The City prepares a 20-year forecast in order to provide a long-term view of the City’s fiscal condition. The chart below shows the resulting outcome of the proposed Biennial Budget on General Fund reserves.

The blue bars in the charts below represent the unassigned, or available, General Fund Reserve balance by year. The solid red line represents the City’s goal of maintaining 30% of General Fund expenditures and the dotted red line represents the City’s minimum acceptable Fund Balance level of 17% of General Fund Expenditures.

The chart incorporates:

POA/PMA agreements for FYs 2023-24 – FY 2025-26, and 2% thereafter
Salary increase of 3% for FYs 2023-24 and 2024-25, and 2% thereafter, for all other employees and no additional employees are hired (beyond that shown in the proposed FYs 2023-24 and 2024-25 budget)
A recession starting in FY 2023-24 (1.5 year recovery; revenue growth assumption of 2%) and occurring every 7 years

As this chart demonstrates, City Council and staff's hard work has put the City in a position where reserves remain at or near 30% for the next two years and beyond.