General Fund Long Term
Financial Plan
2023 City Council Workshop Series
February 7, 2023
General Fund
Long-Term Financial Plan
2 • Applies to General Fund only
• Projects funding surpluses/shortfalls
• Encourages discussion to proactively
address the City’s long-range funding
needs
• Not a budget, but highlights the need to
plan for the allocation of City resources for
continued delivery of core services at
current service levels
The General
Fund Long-Term
Financial Plan
(LTFP) serves as
a long-range
fiscal planning
tool
Key Economic Factors
• Gross Domestic Product
• Inflation
• Federal interest rates
• Employment levels
3 National Growth – Gross Domestic Product
4 Consumer Prices / Inflation
5 Federal Interest Rates
6 Housing Market
7 Economic Forecast
8 L TFP Framework
9 L TFP Assumptions
• Current labor agreements
• New facilities
• Planned commitments
• Sunset of Measure P
• Conservative projections
• No Economic
downturns/recessions
10 This Photo by Unknown Author is licensed under CC BY-SA
REVENUES
11 L TFP Revenue Assumptions
12 Revenue Category FY 2024
Growth Rate
FY 2025 – FY 2033
Growth Rate
Property Tax 5% 4%
Motor Vehicle License Fee (MVLF) 5% 4%
Sales Tax 2% 3%
Measure P (Sales Tax) 2% 3%
Measure A (Sales Tax) 2% 3%
Franchise Fees 2% 2%
Transient Occupancy Tax (TOT) 2% 2%
Utility Users’ Tax (UUT) 0.5% 0.5%
Revenue Projections
(FY 2024 – FY 2027)
13 Revenue Projections
(FY 2028 – FY2033)
14 EXPENDITURES
15 L TFP Expenditure Assumptions
16 Expenditure Category FY 2024
Growth Rate
FY 2025
Growth Rate
FY 2026 – FY 2033
Growth Rate
Personnel Services 2% 3% 3%
Health Insurance 4.1% 5% 5%
Retirement 14.1% 0.1% 0.7% - 2.8%
Supplies and Services 4% 3% 2%
Utilities 5% 5% 5%
Internal Services 2% 2% 2%
Pension Related Costs
17 Transfers Out
Equal to Revenue
Received
Measure A
Measure P
RV Sales Tax
Transfers Out
Grant Match
Debt Service
Section 115 Trust
Contribution
18 New Development Expenditures
• Bayfront Fire Station
• Otay Ranch Village 8 West & Fire Station
• Cinematic Arts Academic Center & Library
• CV Center Sears Site Mixed Use Development
19 Expenditure Projections
(FY 2024 – FY 2027 in millions)
20 Expenditure Projections
(FY 2028 – FY 2033 in millions)
21 SUMMARY
22 Projection Summary
23 Projection Summary
24 Projection Summary
25 General Fund Long Term
Financial Plan
2023 City Council Workshop Series
February 7, 2023