Specifications include, but are not limited to:
1. Establish baseline revenue and expenditure assumptions that include any recommendations for process improvements (i.e. “best practices”). These baseline assumptions must include maintaining fund reserves, remaining competitive regionally by meeting pension obligations, sustaining internal service funding to meet replacement cycles, fulfilling the City’s debt service obligations, and other major factors that staff will identify with the consultant at the outset.
2. Provide revenue estimates for the current year and subsequent ten years for the following General
Fund categories: Real Property Tax, Personal Property Tax, Sales Tax, Operating Tax, Franchise Fees, Business License Taxes, Fines, Forfeitures, Penalties, Real Property Transfer Tax, Licenses and Permits, Medical Cannabis-related Tax, Income Taxes, Interest Income, Highway Tax Revenues, Admissions Taxes and Intergovernmental Charges for current services
3. Provide expenditure estimates for the current year and subsequent ten years for the following General Fund categories: Salaries, Overtime, and Benefits to include Medical Premiums, Vision and Dental, Long-Term Disability, Life Insurance Premiums, Employee Assistance Program, Medicare, Federal Income Tax, and Pension Obligations that can adjust to change in conditions, Services and Supplies, Other Post-Employment Benefits (OPEB), and Equipment, Capital Outlay, Debt Service, Internal Service Fund Charges, “Other” Charges that include grants and transfers out, Termination Pay-outs, Legal Fees. Distinguish Capital Improvement Program (CIP) labor, retiree medical premiums, and non-labor expenditures, including debt service.
4. The workbook must be scenario driven. This means the workbook visualizes graphically all revenues (section b), expenditures (section c), required general fund reserve limits, and with a graphic representation of any impact to actual reserves (i.e. a “bottom line” analysis). Related graphs must be dynamic in nature, but also understandable, repeatable, and flexible.
5. The workbook must allow the end-user to make changes using an “if this, then that” approach. For instance, if the City adds 2 officers to the police department, then the impact to reserves will be X, running a deficit by fiscal year XXXX. Or, if the City introduces revenue measure Y, the impact on general fund reserves would generate a surplus in fiscal year YYYY. This forecast will not be utilized to predict the future, but rather provide insight to elected officials and the City’s executive team as an intellectual exercise.
6. The workbook must offer the end-user the ability to adjust the forecast with contemporaneous information—a downturn in the economy, a revenue measure impact, or labor negotiation impacts.