CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the 2019 Financial Projection Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Financial Forecast Update
At the March 6, 2018, City Council meeting, staff prepared and presented to City Council preliminary budgetary projections from 2019 through 2021 to provide analysis and projected trends surrounding financial issues of interest, including projected property tax outcomes and projected debt issuances. The original forecast showed a 2019 budget that totaled $481.15 million in expenditures and $482.31 million in revenues.
These financial forecasts include numerous assumptions and components that can fluctuate based on a variety of actions. The budgetary projections for 2019 through 2021 utilized assumptions that are based on current policy decisions, current economic conditions, known expense and revenue variables and projected actions. When an assumption changes, this often impacts numerous other assumptions due to the interconnectivity of budgetary components. Changes to any of the documented assumptions (or others) may lead to different budgetary outcomes than originally forecast.
Since the original forecast in March, there have been numerous assumption changes through the second quarter that have altered the projected expenditure and revenue outcomes. These assumption changes are highlighted below. Currently, the updated forecast shows a 2019 budget that totals $479.99 million in expenditures and $484.43 million in revenues.
The 2019 budget cycle officially started on August 1, and final operating and capital budget requests are due at the end of August. At that point, staff will begin internal review stages before presenting a more refined budget recommendation to City Council in October. Based on preliminary information heading into the 2019 budget preparation, staff is confident in the current assumptions and outc...
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