Five-Year Financial Forecast
An important aspect of the budget development process is taking a multi-year approach to understand revenue and expenditure trends over time. Serving as the foundation of the budget planning process, the Town develops a Five-Year Financial Forecast (“Forecast”) beginning in the late fall of each year. The Forecast enables the Town to evaluate the Town’s fiscal condition and to help guide policy, programmatic planning, and budget decisions. Development of a financial forecast as part of the budget development process has been identified as a best practice by the Government Financial Officers Association (GFOA).
The Forecast takes a forward look at the Town’s General Fund revenues and expenditures and is updated regularly. Its purpose is to identify financial trends, potential shortfalls, and other issues so the Town can proactively address them and budget accordingly. It does so by projecting out into the future the fiscal results of continuing the Town’s current service levels and policies. This process helps to provide a snapshot of what the future will look like as a result of the decisions made to date.
This Five-Year Financial Forecast is not a budget, nor a proposed plan. The Five-Year Financial Forecast sets the stage for the upcoming budget process and is a tool in facilitating both the Town Council and Town Manager in establishing priorities and allocating resources appropriately.
On August 11, 2022, the Town Council received the following partially updated Five-Year Forecast which reflects salary and benefit adjustments associated with the successful completion of negotiations with all bargaining units of the Town. Revenues and other elements of the Forecast will updated in the coming months as part of the Mid-Year Budget and Forecast development cycle.