A Look at the City’s Five Year Forecast

A Look at the City’s Five Year Forecast

The City’s 2017 budget has been submitted to the reconstituted oversight board, and this will be the first budget to be voted upon by the board with its current membership.

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%.