General Fund
Five-Year Financial Forecast
Description / Highlights
Fund Activity
Year 1 Year 2 Year 3 Year 4 Year 5
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 FY 28-29 Actual Actual Projection Proposed Forecast Forecast Forecast Forecast Forecast Beginning Available Balance $1,847,113 $2,138,828 $977,254 $848,907 $804,726 $1,568,271 $2,268,771 $175,771 $673,271 Revenues
Taxes
Utility User Tax 3,590,649 3,828,410 3,589,000 3,756,633 4,232,000 4,307,000 4,349,000 4,398,000 4,448,000 Sales Tax 4,775,496 6,263,066 5,398,000 6,178,700 6,373,000 6,609,000 6,832,000 7,041,000 7,238,000 Property Taxes 1,451,716 1,524,791 1,571,000 1,603,000 1,635,000 1,668,000 1,701,000 1,735,000 1,770,000 Franchise Fees 862,104 970,054 905,000 923,100 942,000 961,000 980,000 1,000,000 1,020,000 Business Licenses 268,697 257,289 274,000 279,480 285,000 291,000 297,000 303,000 309,000 Transfer Tax 126,488 199,673 146,000 148,920 152,000 155,000 158,000 161,000 164,000 Transient Occupancy Tax 7,635 25,778 114,000 116,280 119,000 121,000 123,000 125,000 128,000 Vehicle License Fee (VLF) and
Other Intergovernmental 2,285,392 2,391,327 2,511,000 2,561,220 2,612,000 2,663,000 2,715,000 2,768,000 2,822,000 Fines & Forefeitures 36,586 48,663 38,000 38,760 39,000 39,000 39,000 39,000 39,000 Program Revenues
Community Development 824,891 644,862 306,000 173,075 175,000 177,000 179,000 181,000 183,000 Parks and Recreation 396,290 1,034,173 1,156,000 1,300,640 1,327,000 1,353,000 1,380,000 1,408,000 1,436,000 Police 65,915 136,878 139,000 116,700 118,000 119,000 120,000 121,000 122,000 Public Works 46,908 110,559 38,000 38,760 39,000 39,000 39,000 39,000 39,000 Other 10,571 6,723 11,000 11,220 11,000 11,000 11,000 11,000 11,000 Use of Money & Property 511,188 347,905 286,000 292,320 299,000 305,000 311,000 318,000 325,000 Cost allocated to other funds 602,677 624,568 684,000 736,352 758,000 780,000 802,000 824,000 846,000 Transfers In 150,000 396,816 150,000 156,727 150,000 150,000 150,000 150,000 150,000 16,013,203 18,811,535 17,316,000 18,431,887 19,266,000 19,748,000 20,186,000 20,622,000 21,050,000 Expenditures
Police 7,463,163 7,758,261 7,881,727 8,367,070 8,616,000 8,874,000 9,137,000 9,409,000 9,685,000 Public Works 292,566 413,667 415,325 454,663 534,000 547,000 561,000 575,000 589,000 Community Development 788,933 1,039,536 827,093 933,497 956,000 983,000 1,010,000 1,037,000 1,065,000 Parks and Recreation 1,422,635 1,950,446 2,108,537 2,409,876 2,469,000 2,536,000 2,604,000 2,673,000 2,745,000 City Council 407,588 330,296 358,645 335,677 344,000 351,000 358,000 366,000 374,000 City Manager 358,241 496,118 493,186 496,565 510,000 524,000 538,000 553,000 568,000 Human Resources 239,395 321,921 322,689 385,440 396,000 407,000 418,000 429,000 440,000 Legal 154,562 209,134 273,000 281,190 290,000 299,000 308,000 317,000 326,000 City Clerk 438,344 363,201 494,610 514,940 530,000 544,000 558,000 572,000 586,000 Finance 1,109,710 1,114,284 1,272,022 1,309,702 1,348,000 1,387,000 1,427,000 1,468,000 1,510,000 Workers Comp/General Liability 1,076,945 1,135,659 1,265,554 1,467,349 1,512,000 1,556,000 1,602,000 1,649,000 1,697,000 Non-Department 255,536 260,000 260,000 260,000 100,000 103,000 106,000 109,000 112,000 Transfers Out (Debt Service
Obligations) 321,914 423,542 685,934 799,212 800,000 808,000 820,000 832,000 844,000 14,329,532 15,816,065 16,658,322 18,015,181 18,405,000 18,919,000 19,447,000 19,989,000 20,541,000 Net Annual Activity
Ongoing Operations $1,683,671 $2,995,470 $657,678 $416,706 $861,000 $829,000 $739,000 $633,000 $509,000 One-Time Revenues 600,750 4,573,889 3,142,889 - - - - - - One-Time Expenditures (1,992,706) (3,741,816) (1,636,025) (179,250) - - - - - CalHFA Loan Balance (2,700,000)
Reserve per Council Policy (25%) (2,931,768) (281,637) (97,455) (128,500) (132,000) (135,500) (138,000) Reserve for programs/capital projects (2,057,349) (2,292,889) Ending Available Balance $2,138,828 $977,254 $848,907 $804,726 $1,568,271 $2,268,771 $175,771 $673,271 $1,044,271 Operating Reserve:
Beginning Balance $4,034,517 $4,209,129 $4,222,158 $4,222,158 $4,503,795 $4,601,250 $4,729,750 $4,861,750 $4,997,250 Current Year Contribution 281,637 97,455 128,500 132,000 135,500 138,000 Interest Earned 174,612 13,029
Ending Balance $4,209,129 $4,222,158 $4,222,158 $4,503,795 $4,601,250 $4,729,750 $4,861,750 $4,997,250 $5,135,250 % of Projected Operating
Expenditures 29% 27% 25% 25% 25% 25% 25% 25% 25%
The five-year financial forecast involves projecting revenues, expenses, and key factors that have a financial impact on the organization. Understanding long-term trends and potential risk factors that may impact overall financial sustainability allows the finance officer to proactively address these issues. Going through a long-term financial planning process allows decision makers to focus on long-term objectives, encourages strategic thinking, and promotes overall awareness for financial literacy in an organization. Long-term financial planning creates commitment and motivation to provide a guide for decision-making.
Attachment 5