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o Create multi-year operating budget projections based on actual expense detail and feedback <br />from staff. <br />o Incorporate compensation and staffing study findings into planning. <br />o Identify timing for levy or fee adjustments to maintain sustainability. <br />o Examine resiliency of financial systems by projecting loss of certain revenues such as <br />building and development fees. <br />E.Updates and Strategic Alignment <br />o Align the Strategic Financial Plan to the overall Strategic Plan. <br />o Establish an annual update process for the Strategic Financial Plan. <br />o Consider making financial projection modeling process understandable/transferable <br />through EUNA + BS&A integration. (~$10,000/year) <br />o Align the plan with the 2050 Comprehensive Plan as that process progresses. <br />o Reinforce that the plan’s purpose is to inform—not dictate—long-term decisions. <br />Questions for Council Workshop <br />Are there any concerns with or changes needed in the Foundational Assumptions? <br />o The first section of this memo discusses various assumptions that staff will utilize to create <br />the projections. This question is to confirm that we are aligned with our assumptions <br />regarding how the modeling will be created. <br />City Council Priorities & Objectives <br />o Are there any other Financial Priorities or Objectives the Council would like to consider? <br />o What questions would council members like to see addressed in this study? <br />Scenario Planning & Report Planning <br />o Staff will develop a number of different scenarios to illustrate the impacts of decisions on <br />long-term finances. This is likely include a “baseline” scenario, and then various reports that <br />show the impacts of a particular policy decision. <br />o Are there any particular scenarios/projects in addition to the ones already discussed <br />(Sports Complex, Fire Station 2, etc.) we should be sure to address? <br />o Are there any “lenses” that the Council would like to be able to look through to aid them in <br />their future decision making? For instance, a comparison we often use is our tax rate as <br />compared to other Washington County cities. Others may be debt per capita, new home <br />starts, or property tax relative to income. <br />2026 Levy <br />o One short-term decision that will impact long-term planning is the 2026 Capital Levies. The <br />current Infrastructure Reserve Levy approved for the Preliminary Levy in September was <br />$400,000. There was considerable discussion around what this levy should be, and what <br />long-term impacts are, but without full information, staff is estimating an appropriate number <br />based on our assessment of total assets, accrued depreciation, fund balances, etc. Absent <br />further direction from Council, that is the amount that will be presented in December at the <br />Truth in Taxation hearing. <br />ATTACHMENTS: <br />A subset of projections – most relating to the Infrastructure Fund – is included in the packet to <br />provide an example of what we will be looking at during the strategic financial planning process <br />and illustrate how scenarios might change outcomes. <br />Tentative Timeline for SFP development.