FY 2425 2526 Recommended Operating Budget

tax measure to maintain the level of service, or reduce the level of service.

The chart below shows the General Fund Reserves Forecast as of this Recommended Budget compared to the forecast at the City Council Goal Setting Workshop in February 2024:

60%

General Fund Reserves Forecast

52%

50%

50%

41%

40%

40%

31%

30%

24%

29%

19%

20%

16% 15%

22%

16%

10%

0%

YEP

Rec

Rec

Forecast

Forecast

Forecast

Forecast

23-24

24-25

25-26

26-27

27-28

28-29

29-30

Fund Balance Minimum Level 15% of Revenues Fund Balance Goal 25% of Revenues

GF Forecast at Goal Setting

GF Six Year Forecast

Development Services Fund

The Development Services Fund accounts for the City's planning, building, and engineering activities. The Fed’s two -year drive to tame inflation unleashed the steepest series of interest rate increases in decades and is having a negative impact on development as developers continue to face difficulty finding lenders to finance their projects. This is more pronounced in the commercial real estate sector. The City has seen several projects either delayed or cancelled altogether, and the

22 BUDGET MESSAGE