To: Honorable Mayor and Members of City Council
From: Bret Prebula, Finance Director
Prepared By: Jessie Gooch, Finance Analyst
TITLE:
Title
2020 Updated Long Term Financial Forecast
LABEL
RECOMMENDED ACTION:
Recommendation
Receive and discuss the 2020 Updated Long Term Financial Forecast.
Body
DISCUSSION:
COVID-19 has affected numerous aspects of our work and personal lives. The challenges before us are starkly different: how to retool to deliver essential services; how to mitigate the disastrous economic impact on our residents and businesses; how to jumpstart a robust recovery; and how to cope with a dire fiscal emergency on top of the public health crisis.
It becomes more important now than ever to ensure we evaluate the short-term to intermediate future of our financial position. Typically, the City of Napa prepares the Long-Term Financial Forecast (LTFF) on an annual basis to report projected revenues and expenditures of the General Fund over a 10-year period. The 2020 LTFF was brought to Council in November 2019. Given the challenges the City is now facing due to COVID-19, we are bringing an updated five-year projection to Council.
The LTFF includes the following information:
? Current Economic Information
? Revenue and Expenditure Assumptions
? General Fund Financial Forecast
The LTFF reflects a five-year structural deficit under the current assumptions and conditions. A summary of the baseline assumptions for revenue and expenses are outlined below. The majority of these assumptions remain unchanged from the original 2020 LTFF. It is important to note, the LTFF is a forecasting/planning tool but does not bind council to the assumptions within the forecast (COLA assumptions, no new positions added, risk management increase etc.). The assumptions are used to create a reasonable baseline for the forecast.
As shown in the forecast, regardless of the speed of the recovery, decreases in General Fund ongoing expenses must occur to ensure the...
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