HomeMy WebLinkAboutStaff Report 431-06TO:
ATTN:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
FINANCE COMMITTEE
CITY MANAGER
DECEMBER 12, 2005
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 431:06
UPDATE TO LONG RANGE FINANCIAL FORECAST
DISCUSSION
Attached lo this report is the City’s updated General Fund Long Range Financial Forecast
(LRFF) for the years 2006-07 through 2016-17. The LRFF identifies key issues that will guide
the upcoming 2007-09 budget process and affect the City’s future financial condition.
This forecast is of particular importance given the new financial developments it contains. These
include, for example: implementing GASB 45 which addresses the General Fund’s retiree
medical liability, meeting the Ccuncil’s target for annual contributions to the Infrastructure
Reserve, and incorporating recent labor agreements that cap employee medical benefits and
Frovide a 2.7 percent at 55 retirement plan for miscellaneous employees. As a consequence of
recent successful efforts to balance its budget and a slowly improving economy, the City is
positioned to address these changes and to face future challenges.
The format of this year’s LRFF has been changed. An Executive Summary with accompanying
sections is included, designed to focus on key elements of the forecast. Supporting and technical
information has been moved to appendices.
RECOMMENDATION
Staff recommends that the Finance Committee review and comment cn the attached forecast of
revenues, expenses, and reserve levels and forward it lo the full Council.
RESOURCE IMPACT
As with any financial forecast, the fiscal impacts shown are estimates. Estimates of future
deficits and surpluses, as well as the estimated costs of future financial challenges, a~e n~eant to
guide future policy and budget decisions.
POLICY IMPLICATIONS
The Long Range Financial Forecast is a tool for Council’s use in making policy decisions
regarding the allocation of resources.
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ENVIRONMENTAL REVIEW
This report does not require California Environmental Quality Act (CEQA) review.
PREPARED BY:
JOE SACCIO
Deputy Director
DAVID RAMBERG
Budget Manager
DEPARTMENTAL HEAD APPROVAL:
CARL YEATS
Director, Administrative Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
ATTACHMENTS
Attachment 1: Long Range Financial Forecast.
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