Page 110 - Ord 866 Adopting a revised Fiscal Year 17-18 and new proposed Fiscal Year 18-19 budget

Section 2 Financial Analysis
Forecast Overview

GOALS OF LONG-RANGE PLANNING, MULTI-YEAR PLANNING
Multiyear planning is a key component of Westlake’ s financial principles. Without proper planning,
multi-year sustainability would not be attainable.

With these priorities in mind, the Town approaches multiyear planning from these perspectives:
First, as it relates to revenue, effective economic analysis is essential to accurate
forecasting. Various data on local economic information is used when projecting revenues
for the budget. This data includes economic indicators such as interest rates, wages, health
care costs, consumer spending, and housing and commercial growth. The data gathered
from these sources are used to create financial scenarios for stronger current budget
decisions. KEY REVENUE DRIVERS
On the expenditure side, the operational impact of
projects and programs have been identified and Tax Rate
incorporated into the budget and a multi-year Net Taxable Value
analysis has been completed to confirm the Sales Tax
sustainability of the budget over time.
Mixed Beverage Tax
One of the goals for the budget is to anticipate and make Franchise Fees
deliberate decisions to reach financial and service goals. Licenses & Permits
These trends are graphed and provided as a part of this Charges for Services
budget’ s support materials to provide a deeper
Intergovernmental Revenues
understanding of the Town’ s overall financial condition.
Fines & Forfeitures
The Long- Range Financial Forecast takes a forward look at Interest Income
the Town’ s revenues and expenditures. It sets the stage for
the budget process, facilitating both Council and staff in establishing priorities and allocating
resources appropriately.

Forecasting gives the Council time to strategize as to course KEY EXPENDITURE DRIVERS
we may want to make financially, both in the short and long
term. To maximize the benefit of long-range planning, Overtime Costs
Council has established the following goals: Operating Supplies
Sustain existing programs at high service levels.
Apparatus & Tools
Maintain a healthy General Fund balance of at least
Motor Vehicle Fuel
90 operating days annually.
Maintain competitive employee compensation within Maintenance
3% of the median for the market. Travel, Training & Dues
Provide adequate and stable funding for street and
Utility Costs
facility maintenance projects.
Professional Services
Its purpose is to identify financial trends, shortfalls, and issues Insurance Costs
so the Town can proactively address them. It does so by Fleet Replacements
projecting out into the future the fiscal results of continuing
Capital Equipment Replacements
the Town’ s current service levels and policies, providing a
snapshot of what the future will look like as a result of the decisions made in the recent past.

The purpose of the forecast is to get an idea (based on conservative assumptions) regarding what
will happen in the regional and state economy, and on near-term and long-term revenue and
expenditure drivers during the five (5) year planning period. The term “ conservative” used in the
context of financial forecasting means revenues are forecast at low growth levels or even at a
decline ( depending on the revenue source).

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