Recommended FY 2022-2024 Operating Budget and CIP

General Fund Six-Year Forecast

The General Fund Six-Year Forecast (Forecast) spans from Fiscal Years (FY) 2021-22 to FY 2027 28. The purpose of the Forecast is to help make informed budgetary and operational decisions by anticipating future revenues and expenditures. The Forecast includes major known fiscal conditions and projected future conditions to support informed long-term planning and decision making regarding operational resources. The City’s General Fund Reserve Policy states the City commits to target the minimum reserve level necessary to maintain the City’s credit worthiness and to adequately provide for economic uncertainties, local disasters or catastrophes, future debt or capital obligations, cash flow requirements, and legal requirements. In addition, General Fund reserve levels are not to be depleted below a long-term goal of 25 percent of revenues in any year; and reserves shall never be depleted below a minimum level of 15 percent of revenues. If reserves do, or are projected to fall below the 25 percent long-term goal at any time, then policy action must be taken no later than the next budget cycle. During FY 22-23 and 23-24, the City may need to develop strategies to address shortfalls projected in the final year of the Forecast. The Forecast is not a budget and does not include any proposed balancing solutions.

332 SPECIAL ANALYSIS