Page 17 - 2019-20-CitizensGuideToBudget

ECONOMIC FUTURE
ENGAGEMENT BUDGET ASSUMPTIONS/

Concerns

Based on the City’s long-range projections, the City will have to continue to overcome the following budget realities.

• Expenditures continue to increase primarily due to Public Safety
• Revenue growth from existing sources is fl attening, while future recessions are projected
• Economic Development and growth is the key to balancing future budgets, but this growth alone will not fund the priorities/
needs identifi ed by the community in past surveys. Economic development helps to grow revenues to maintain services
• New revenues are necessary to provide enhanced services
• New revenues are necessary to provide enhanced services
The illustration below shows the potential budgetary gap in future years beyond this two-year budget cycle. Expenses are
The illustration below shows the potential budgetary gap in future years beyond this two-year budget cycle. Expenses are
forecasted to increase through 2025 and through economic development, revenues may also.
forecasted to increase through 2025 and through economic development, revenues may also.
FY
2024/25
140
FY
2022/23
130

FY
2023/24
120 FY
FY
2018/19 2021/22
FY
2020/21
MILLIONS 2008/09 FY 2019/20
110
FY
FY
100 2017/18
FY
90 2009/10 FY
2016/17
FY
2015/16
80
FY
FY 2014/15
2010/11
FY FY
FY
70 2011/12 2012/13 2013/14
Revenues Expenses *Revenues do not assume projected recession.
While focusing signifi cant energy to attract and retain local businesses, the City will also contend with ongoing fi scal pressures:
• Although Moreno Valley works hard to protect funding for local services, Sacramento continues to fi nd new ways to take
millions of dollars from cities like ours, while also imposing expensive new regulations without any funding to implement them
• Riverside County continues to increase costs for key public services, including contract law enforcement
• Fire protection costs are rising
• The City must continue to re-invest in upgrading the City’s aging infrastructure - specifi cally unsatisfactory on 53% of our streets
• The City Council’s commitment to Pension Reform continues to save millions of dollars every year. The City must also
contend with factors beyond its control such as revisions to CalPERS rate methodology which had previously smoothed
rate increases over longer periods
• The General Fund must guarantee debt service payments on the police facility and other obligations of the current
Development Impact Fee accounts
• The Country is in the longest economic recovery period ever recorded. If economic development does not occur, city
services may be impacted in the future
The City’s ongoing success in meeting fi scal challenges demonstrates the City Council’s commitment to using resources for
maximum public benefi t. The Council’s resolve, combined with highly engaged managers at all levels and a collaborative
relationship with our employees will continue to serve us well over the next two fi scal years and beyond.

Citizens’ Guide | 17