Item 8.2: General Fund Long
Term Financial Plan
Sarah Schoen, Director of Finance/Treasurer
Ed Prendell, Budget Manager, Finance Department
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
L TFP Framework and Assumptions
3 4
L TFP Summary
FY 2026 – FY 2035
(In millions)
• Increase in labor and pension costs
• Other Expenditures cost increases
– Bayfront fire station costs
– Millenia library operating costs
– Insurance Costs
– Contractual increases tied to CPI/inflation
5 Major Contributors to Shortfall
L TFP Major Revenue Assumptions
6 Revenue Category
FY 2026
Growth Rate
Compared to Amended FY 2025
Budget
FY 2027 – FY 2035
Growth Rates
Property Tax 6.0% 4.0% - 6.0%
Motor Vehicle License Fee (MVLF) 6.2% 4.0% – 6.2%
Sales Tax 3.0% 3.0% – 4.0%
Measure P (Sales Tax) 3.0% 3.0% – 4.0%
Measure A (Sales Tax) 3.0% 3.0% – 4.0%
Franchise Fees 2.0% 2.0%
Transient Occupancy Tax (TOT) 5.9% 2.1% – 5.9%
Utility Users’ Tax (UUT) -0.1% -0.1% - 0.0%
Revenue Projections
FY 2026 – FY 2030
(In millions)
7 Revenue Projections
FY 2031 – FY 2035
(In millions)
8 L TFP Expenditure Assumptions
9 Expenditure Category
FY 2026
Growth Rate
Compared to Amended FY
2025 Budget
FY 2027 – FY 2035
Growth Rate
Personnel Services 5.3% 2.8% - 5.4%
Retirement 5.4% 1.5% - 8.5%
Health Insurance 5.0% 5.0%
Liability Insurance 25.0% 5.0%
Supplies and Services 2.0% 2.0%
Utilities 5.2% 4.9%
Internal Services 3.1% 2.0%
Pension Related Costs
10 $12.0 $12.2 $11.6 $11.9
$14.0 $15.2
$12.8 $13.3
$13.1
$13.3
$17.8
$19.5
$0.7
$2.3
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
FY 2020
Actual
FY 2021
Actual
FY 2022
Actual
FY 2023
Actual
FY 2024 FY 2025
Adopted
Millions
Normal Costs POB Debt Service UAL Costs
FY2025 Total: $29.6M
Expenditure Projections
FY 2026 – FY 2030
(In millions)
11 Expenditure Projections
FY 2031 – FY 2035
(In millions)
12 General Fund Reserves
13 Reserve Description Reserve Target % Target Met
Current Reserve
Amount $
(in millions)
Operating Reserve 15.0% $27.3
Economic Contingency
Reserve 5.0% $9.1
Catastrophic Event Reserve 3.0% $5.5
Pension Reserve1 15.0% $23.4
Bond Call Reserve1 N/A N/A $2.3
OPEB Reserve1 N/A N/A $0.8
1 Amounts reflect the General Fund portion of the total citywide reserve amount Other Critical Needs
and Risks
• Fiscal impacts from Federal and State actions
• Strategic Planning process
• Department budget requests: $11.6 million
• Addressing deferred maintenance and capital
needs
• Increased costs for insurance and utilities
• Economic downturn/recession
14 Next Steps
15 MARCH 4TH – FISCAL
YEAR 2024-25 2ND
QUARTER FINANCIAL
REPORT PRESENTED TO
CITY COUNCIL
APRIL 16 & 23RD –
HOLD WORKSHOPS TO
PROVIDE THE PUBLIC AN
OVERVIEW OF FY 2025-
26 PROPOSED BUDGET
MAY 6TH – PRESENT
CITY MANAGER’S FY
2025-26 PROPOSED
BUDGET AND CIP
OVERVIEW TO THE CITY
COUNCIL
MAY 20TH – CITY
COUNCIL PUBLIC
HEARING AND
ADOPTION OF FY 2025-
26 PROPOSED BUDGET
Item 8.2: General Fund Long
Term Financial Plan
City Council Meeting
February 11, 2025