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Multi-Year Forecast Completing the multi-year forecast for key operating funds is a critical budgetary tool providing a multi-year view of revenues and expenditures and helping the City Council evaluate the impact of policy choices on the long-term scal health of the City. The General Fund (a ten-year forecast), Special Revenue, and Enterprise/Internal Service funds sections of this book include detailed discussions of ve-year forecasts for key operating funds supported by special taxes, assessments, and fees. The forecasting model enables the City Council to act more strategically and to understand the future impact of current decisions. Given the legal restrictions on raising new revenues for all new or increased taxes (Proposition 218), it is particularly important to understand the long and short-term scal impact of policy decisions. What are the long-term scal consequences of employee pay and benet policies? What are the long-term impacts of continuing to defer maintenance? Should voters be asked to approve a tax increase to support Storm Water infrastructure improvements? The multi-year forecast also serves to identify potential future issues that require scal planning. Early planning for changes in baseline expenditures is critical to ensuring continued nancial stability for the organization. A variety of assumptions and factors drive the forecast, such as labor costs, ination, potential recession, Federal and state regulatory requirements, statewide initiatives, short-term tax shortfalls, and unforeseen emergencies. These assumptions impact revenue and expenditure projections and variations can cause wide swings in budget balancing strategies. The table below summarizes projected General Fund revenues compared to expenditures during this time period as well as estimated surpluses or decits. Please note though that this is only one possible future for the City based on the assumptions to be detailed below and future year trending based off of those assumptions. Should actions be taken to reduce expenditures beyond any measures taken to date, revenues increase through new or modied sources, or the economy recovers more quickly or more slowly than expected, actual results could deviate from projected results, which are based upon best data as of today. Fiscal Years 2023-24 through 2031-32 (Dollars in millions) 2023-24 Proposed 2024-25 Proposed 2025-26 Projected 2026-27 Projected 2027-28 Projected 2028-29 Projected 2029-30 Projected 2030-31 Projected 2031-32 Projected Beginning Fund Balance $ 72.9 $ 67.6 $ 61.7 $ 60.7 $ 58.7 $ 53.9 $ 49.4 $ 46.4 $ 45.3 Total Revenues $ 138.0 $ 140.9 $ 144.5 $ 148.2 $ 149.0 $ 154.3 $ 160.6 $ 167.4 $ 172.9 Total expenditures $ 143.3 $ 146.8 $ 145.5 $ 150.1 $ 153.8 $ 158.8 $ 163.6 $ 168.5 $ 173.6 Operating Surplus/(Shortfall)$ (5.3) $ (5.9) $ (1.0) $ (1.9) $ (4.9) $ (4.5) $ (3.0) $ (1.1) $ (0.7) Ending Fund Balance $ 67.6 $ 61.7 $ 60.7 $ 58.7 $ 53.9 $ 49.4 $ 46.4 $ 45.3 $ 44.6 The projection information is also depicted in the chart below as a summary forecast of the city's revenue and expenditure trends over the next ten years. Revenues will be impacted by economic conditions and other factors, resulting in a range depiction in the chart. City of San Leandro | Proposed Biennial Budget FY24-25 Page 27