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Overview of Draft Projections/Modeling <br />The next few sections provide an initial glimpse of how we will be modeling for the Strategic <br />Financial Plan. These reports focus mainly on Infrastructure, as that is the most complicated, <br />expensive, and underfunded segment of our expenses currently. Thus, it is the area in need of <br />more strategy and financial planning than it has had in the past. <br />Scenarios <br />The purpose of the scenarios is to illustrate what might happen to various outcomes given <br />a certain set of assumptions or policy decisions. <br />We are providing three scenarios for this discussion. <br />These scenarios focus mostly on the Street CIP and the Infrastructure Fund (409), as the <br />Infrastructure Levy and Fund will affect our overall levy and tax rate, as well as the ability <br />decrease our debt outstanding over time. The Strategic Financial Plan will address all <br />capital funds. <br />The following factors are used in the scenarios; <br />o Cash funding assumptions for infrastructure projects. <br />For Residential Street Reconstructions, we assumed a mix of current (cash) <br />and future (debt) dollars, plus the 30% in special assessments. The cash <br />portion increases over 6-10 years depending on the scenario. <br />For Transportation Projects, we used 30% in Scenario 1 and then “all new <br />dollars” in Scenarios 2 and 3, meaning any levy, franchise fees, and MSA <br />received in any given year, up to 100% of the project. <br />We did not utilize fund balance, so that fund can continue to grow to meet <br />future needs. It grows any year we did not utilize “new dollars”. <br />o 409 Levy Amounts; <br />We varied the starting (2026) levy amount and the growth rate for each <br />scenario. <br />409 Levy Goal – This number is used in the CashFlow sheet to stop the <br />growth of the levy at this amount. <br />o Future Improvement Averages – This number is used in post-2036 estimates to <br />project long-term outcomes. <br />o Additional Factors will be utilized when developing the full Strategic Financial Plan. <br />This initial review focused on the Infrastructure Fund. <br />The first couple of charts in the following pages show a comparison of the three <br />scenarios. <br />2026 – 2035 CIP <br />Engineering created the 10-year Infrastructure CIP, which includes Residential Street <br />Improvements, Transportation Improvements (city and county collectors), and Utilities. <br />Finance then uses this data, along with our scenario assumptions to project the funding <br />mechanisms for each project. <br />The one exception is the Future Improvements Averages after 2036. We’re estimating <br />this based on conversations with Engineering and review of current 10-year period