A Look at the City’s Five Year Forecast
The 2017 budget projects $545.0 million in revenues, $539.4 million in expenditures, and a result of $5.6 million. The operating result is projected to only get better in the five year forecast through 2021, standing around $17.5 million. The City projects its ending fund balance to remain around $70 million or so through the period.
From 2016 through 2021, expenditures are projected to rise 12%. In the approaching years, the “debt cliff” materializes, and the City’s debt service will fall from $88 million this year to $55.6 million in 2021 (-37%). At the same time, the City’s commitment to boost pension funding will also kick in, so the category of pension and OPEB is projected to rise 51%. Debt service as a percentage of expenditures will fall to less than 10%. Operating departments are expected to increase 12%, and health benefits will be the second fastest growing category at 38%.