STRATEGIC BUSINESS PLAN
Examination of potential strategies in the City’s long-term plan are based on forecast assumptions. Scenario 1 reflects the impact of an economic downturn that resembles the Great Recession. In this scenario, beginning in FY 2023-25, revenues have sharp declines in all areas and include a 1 percent decline in year one and 6 percent decline in year two and three before revenues begin to rebound. Scenario 1 does not take into account expenditure measures that would typically be enacted. The City’s Contingency Reserves are almost exhausted within FY 2025-26, assuming no course corrections are made. Scenario 2 reflects the impact of an economic downturn that has long-term effects on the City’s revenue stability and resembles a 2 percent decline in revenues for an ongoing period. Scenario 2 does not take into account expenditure measures that would typically be enacted. In this scenario, the City’s Contingency Reserves are depleted by FY 2026-27, assuming no course corrections are made. Staff economic environment and makes corresponding adjustments as necessary and will continue to work on multiple strategies to proactively plan from a long-term perspective. Key strategies include: improving revenue growth, ensuring full cost recovery, evaluating service levels and delivery of services, and utilizing technology to closely monitors the
manage growth and increasing demands. In the event that a decline may occur, key strategies include re- evaluating service delivery options, delaying non-critical vacancies, eliminating non-critical vacant positions, postponing merit increases and cost of living adjustments, deferring contingency capital improvement projects, and deploying contingency reserves.
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FY 2023-25 Adopted Budget
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