Item 8.4: General Fund
Long-Term Financial Plan
Sarah Schoen, Director of Finance/Treasurer
Adrian Del Rio, Assistant Director, Finance Department
Ed Prendell, Budget & Analysis Manager, Finance Department General Fund
Long-Term Financial Plan (L TFP)
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 LTFP
serves as a
long-range
fiscal
planning
tool
L TFP Framework and Assumptions
3 4
L TFP Summary
FY 2027 – FY 2031
(in millions)
5 L TFP Summary
FY 2032 – FY 2036
(in millions)
• Personnel Expenditures
– Increase in salary and pension costs
• Non-Personnel Expenditures
– Increase in insurance premiums
– Millenia library facility costs
– Increase in utility costs
– Increase in contractual services tied to CPI/Inflation 6 Major Contributors to the Shortfall
Revenue Projections
FY 2027 – FY 2031
(In millions)
7 Revenue Projections
FY 2032 – FY 2036
(In millions)
8 Expenditure Projections
FY 2027 – FY 2031
(In millions)
9 Expenditure Projections
FY 2032 – FY 2036
(In millions)
10 Pension Related Costs
11 $12.2 $11.6 $11.9 $14.0 $14.8 $16.3
$12.8 $13.3
$13.1 $13.3
$14.3
$19.5
$0.7
$2.3
$4.5
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$40.0
FY 2021
Actual
FY 2022
Actual
FY 2023
Actual
FY 2024
Actual
FY 2025
Actual
FY 2026
Adopted
Millions
Normal Costs POB Debt Service UAL Costs
General Fund Reserves
12 Reserve Description Reserve Target % Target Met
Operating Reserve 15.0%
Economic Contingency
Reserve 5.0%
Catastrophic Event Reserve 3.0%
Pension Reserve Fund 15.0%
Bond Call Fund N/A N/A
OPEB Reserve Fund N/A N/A
Other Critical Needs and
Risks
• Department budget requests for FY 2027
• Strategic Planning processes
• Addressing deferred maintenance and capital
needs
• Operational and infrastructure needs as we
continue to grow and build out the City
• Increased costs for insurance and utilities
• Fiscal impacts from Federal and State actions
• Economic downturn/recession
13 Next Steps
14 December 2nd
Fiscal Year 2025-26
1st Quarter
Financial Report
presented to City
council
April 15th & 22nd
Hold workshops to
provide the public
an overview of FY
2026-27 Proposed
Budget
April 28th
Present City
Manager’s FY 2026-
27 Proposed
Budget and CIP
Overview to the
City Council
May 12th
City Council Public
Hearing and
Adoption of FY
2026-27 Proposed
Budget
Item 8.4: General Fund
Long-Term Financial Plan
City Council Meeting
November 18, 2025