Page 35 - FY 2026-2027 Adopted Budget Book

Long Range Planning

The charts below show the revenue and expense projections for the City's major funds for the next five years.

General Fund Financial Forecast

Procedure

As part of the budget process, staff presents the City Council with a long-range forecast model to provide a
better understanding of the impact of budget decisions in the upcoming fiscal year. The forecast model serves
as a tool for sound decisions, accurate projections and financial management of the City’s General Fund. The
model calculates, predicts, and offers a visual snapshot of the City’s General Fund financial position for the
next five years. It is dynamic and staff can adjust as new revenue and expense data becomes
available. More importantly, the model is used to evaluate the future impact of hypothetical changes that can
cause short or long-term problems. The model enables informed decision-making by showing both the short-
term and long- term affordability of those decisions. The long-range plan is updated during discussions with
the City Council as part of the budget process.

Methodology

The model highlights historical revenue and expenditure trends from the previous five years to form predictive
behavior of certain budgetary line-items. Therefore, based on certain trends, the model includes many
assumptions.

The General Fund’s major revenue sources include property taxes and sales taxes. Each of these revenue
sources are driven by the growth of the local economy and the City’s population. This is also true of a number
of the City’s other revenue sources including fees and charges for service, franchise taxes, and licenses and

FY 2026-2027 Adopted Budget Book · September 15, 2026 31