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t <br />GP <br />REQUEST FOR COUNCIL CONSIDERATION <br />STAFF REPORT <br />AGENDA SESSION DATE <br />Agenda Section: <br />Report Number: <br />Report Date: <br />DISPOSITION <br />Item Description: <br />Administrators Review/Recommendation: <br />- No comments to supplement this report <br />- Comments attached. <br />x -( <br />• <br />Explanation/Summary (attach supplement shee = as necessary.) <br />,SUMMARY; <br />Attached are five year revenue and expenditure projections for the City's General Fund. These <br />projections were designed to better satisfy Section 7.05 of the City Charter requirements for the Long <br />Term Financial Plan (LTFP) as well as to provide some indication of the impact of the addition of new <br />programs upon the budget and upon property taxes. <br />As with all projection assumptions must be made regarding revenue and expenditure growth (See Page <br />1 of attachments). Revenue increases assumed are based upon historical averages. Intergovernmental <br />Aid includes all State & Federal Aids, although HACA & LGA are the largest items in this category. <br />Expenditures are projected to increase at a rate of 3% per year. That number was chosen because the <br />implicit price deflator index (a measure of the cost of providing government services used by the State <br />for LGA increases) and the Consumer Price Index (CPI) have been at or near 3% for several years. <br />Revenue & Expenditure Projections, based upon maintaining the present level of City services, are on <br />Page 2 of the attachments. A balanced budget was assumed. The line "Tax Increase - Inflation" shows <br />the tax increase needed to finance the expenditure budget for each year. <br />Page 3 of the attachments shows the impacts of each years budget in terms of the property tax levy & <br />the property tax on the average residential home. The section entitled "Inflation Adjustment Only" shows <br />the impacts of maintaining present services over the next five years. The section entitled "New <br />Programs" identifies new programs contained in the LTFP: The section entitled "Inflation Adjustment <br />+ New Programs" shows the impacts of maintaining present services + the new programs listed. <br />The ordinance which established the gas/electric franchise fee provides for the fee to sunset in 1998. <br />Pages 4 & 5 of the attachments show the impacts of no franchise fee for the years 1998 - 2000. <br />Should you have any questions please do not hesitate to contact me. <br />RECOMMENDATION; <br />Donald Brager, Finance Wector <br />