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<br />projection period from FY 2024 – FY 2034. The model then calculates the level of revenue <br />adjustments required for the fund to meet its revenue requirements. It replicates the cash flows in <br />each year of the projection period, based upon City policies and available fund balances. In each <br />year, the model utilizes unrestricted fund balances, revenues, and capital funds to pay for any <br />operating or capital expenditures in that year. To the extent necessary to fund all of the projects and <br />vehicle/equipment replacements in the capital program, the model can identify the level of <br />borrowing and the resulting debt service payments that would be required. <br />RESULTS <br />Based on the source data and input provided by City staff, and the assumptions and policies <br />described herein, the City’s current revenues are not sufficient to fund its ongoing operating, capital, <br />debt service and coverage requirements, and working capital reserve targets throughout the <br />projection period. <br />Additionally, a new street sweeping contract of $4.1 million will begin in FY 2025 and is a major <br />driver for the user charge increase required. This represents an increase of $3.0 million in ongoing <br />expenses that will be used to expand street sweeping services, including increasing annual sweeping <br />by 20,000 curb miles and commercial sweeping to twice per week, increase required staffing, and <br />provide better service to customers and $1.1 million for contract maintenance staff to boost <br />sanitation services. In order for the City to be sustainable, their fund balance must meet the <br />minimum reserve target in each year of the projection period. The graph below shows the City’s fund <br />balance (in yellow) without any increase in the users charge and the fund balance (in blue) with the <br />necessary increases. As can be seen, the fund balance without user charge increases falls <br />significantly below the reserve target beginning in FY 2025 and the fund is exhausted by FY 2026. <br />10