DATE: February 5, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: GENERAL FUND FIVE-YEAR FINANCIAL FORECAST
RECOMMENDATION
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Staff presents the FY 2025-26 through FY 2029-30 General Fund Five-Year Financial Forecast for review and seeks direction to proceed with the development of a fiscally sustainable budget strategy that aligns with the City's long-term goals and priorities. Staff concurrently recommends that the City Council approve the allocation of 50% of the FY 2023-24 General Fund surplus ($8.25M) to the San Luis Rey River (SLRR) project reserve account and the appropriation of the remaining 50% of the surplus ($8.25M) to the El Corazon Park Site 1 project.
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BACKGROUND AND ANALYSIS
The financial forecast is a forward look at the City of Oceanside's General Fund revenues and expenditures. Its purpose is to identify ?nancial trends and issues so the City can proactively address them. The forecast projects fiscal outcomes based on the continuation of current service levels, policies, and anticipated changes to revenue streams or expenses. It also incorporates historical data to provide context and illustrate the financial trajectory resulting from past decisions.
Generally speaking, positive results within the forecast indicate surplus funds available for new initiatives and projects, while negative results highlight potential budget gaps which could result in spending reductions. For the five-year forecast period, staff projects a consistent positive balance, beginning with a projected surplus of $3.8 million for FY 2025-26, based on projected revenues of $231.18 million and expenditures of $227.38 million.
It is important to stress that this financial forecast is not a budget, nor is it a proposed ?nancial plan for achieving City or City Council objectives. The forecast is a projection informed by current economic data, consultant reports, and staff analysis, representing a consensus on likely...
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