Title
Discussion of Key Financial Assumptions to be Used in the Compilation of the City’s 2017-2021 Five-Year Plan.
Executive Summary: Staff would like to discuss key financial assumptions with City Council prior to completing the Five-Year Plan. Formal review and discussion of the Five- Year Plan will take place at upcoming workshops.
Body
Legislative History
None.
Purpose & Explanation
The purpose of the discussion is to give Council a chance to review key financial assumptions that will be incorporated into the 2017-2021 Five-Year Plan. The key assumptions are as follows:
1. Income tax increase of 2% annual increase for 2017-2021. The five-year average from 2012 to 2016 is estimated at 4.09%. The three-year average from 2014 to 2016 is estimated at 3.06%.
2. Cost of living adjustment (COLA) increase of 1% for all years.
3. Health care coverage increase of 5% for all years.
Timing Considerations
Formal review and discussion of the Five-Year Plan will take place at the workshops on Sept. 13 and 27.
Fiscal Impact
X Appropriation Not Required.
Recommendation
Suggested Action
Staff recommends Council review the assumptions and discuss any changes, clarification, etc.
Submitted by,
Jane Howington, City Manager
Jeff Knoblauch, Finance Director