Adopted Budget Book FY 23-24 Final with TOC links - Flipbook - Page 105
Budget-In-Brief → buDgeT oVerView
payments, and other expenses. Overestimating expenditures can lead to budget surpluses, but
it may also result in important services underfunding.
Short-Term Budget Impact:
●
●
●
Balancing Act: Revenue and expenditure forecasts guide city officials in crafting balanced
budgets. By comparing anticipated income to projected expenses, municipalities can identify
any budget gaps or surpluses that need addressing.
Program and Service Funding: Forecasts influence funding decisions for various programs and
services. If revenues are expected to increase, cities may allocate more resources to improve
infrastructure, expand services, or address community needs. Conversely, revenue shortfalls
may necessitate prioritization or expenditure cuts.
Emergency Preparedness: Accurate forecasts help municipalities set aside reserves for emergencies and unexpected events. These reserves can be crucial for addressing unforeseen challenges without destabilizing the budget.
Long-Term Planning Impact:
●
●
●
Debt Management: Revenue forecasts inform debt management strategies. Municipalities must
ensure they can meet debt service obligations over the long term without straining resources
or affecting essential services.
Infrastructure Investment: Long-term planning often includes capital improvement projects,
such as road maintenance, water system upgrades, and public facility construction. Revenue
projections help determine the feasibility of these projects and whether they can be financed
without overextending the budget.
Economic Development: Forecasts influence decisions related to economic development initiatives. City may set aside resources for incentives, infrastructure improvements, or workforce
development programs to attract businesses and foster economic growth.
Implications for Future Budgets and Operations:
●
●
●
Historical Data Analysis: Over time, comparing actual revenue and expenditure data to initial
forecasts provides valuable insights. The City can refine their forecasting methods and adjust
budget priorities based on past performance.
Flexibility: Accurate forecasts enable the City to adapt to changing circumstances. Whether
responding to economic downturns, natural disasters, or shifts in community needs, municipalities can use forecasts to make informed adjustments to future budgets and operations.
Public Trust: Transparent and well-informed budgeting processes, supported by reliable forecasts, build public trust. Residents expect fiscal responsibility and accountability in municipal
governance.
To develop the five-year financial forecast, the following areas were reviewed:
●
●
●
●
●
The City’s current year budget consumption.
Trends in spending and revenue sources based on historical data.
An analysis of the City’s general fund revenues, expenditures, current taxable valuation (as
provided by the property appraiser), and projected valuation (based on anticipated new development and/or land-use changes).
An analysis of financial policies as they relate to funding balance reserves.
Current and projected economic conditions in the local area and anticipated legal changes
Back to TOC
City of Eustis, Florida
Adopted Budget
103
