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Page 1 of 2 Ogden City Council Work Session: April 25, 2017 GENERAL FUND FINANCIAL MODEL Purpose Of Work Session: To Review and Discuss the General Fund Financial Model Developed by the City’s Financial Advisors Executive Summary The City’s financial advisors will present the updated General Fund Financial Model (GFFM) developed with input from all division managers and department directors. The GFFM is a rolling five-year planning tool that will assist the Council and the Administration in determining the sustainability of the City’s General Fund. Background October 2015 Laura Lewis from Lewis Young Robertson and Burningham, (LYRB) approached the City about completing a General Fund Financial Model (GFFM) for the City. Ms. Lewis indicated that several cities in the state were using this tool. She explained that the GFFM would be developed in much the same way as the Utility Rate Study Financial Models and could be used to not only evaluate the City’s current General Fund financial position, but also to determine future sustainability based on assumptions regarding revenues, expenses, growth, and levels of service. April 7, 2016 Council staff and Chair White met with Administrative staff and Laura Lewis during the Utah League of Cities and Town Mid-Year Meeting in St. George, Utah. It was agreed that LYRB would begin development of the FY2017 GFFM with the goal of completing the initial phase by July 15, 2016. It was understood that this would be a preliminary effort that could be somewhat helpful for FY2017, but that it would take an additional year or two of additional data before the model could be utilized to its full potential. July 26, 2016 ` The Council held a work session to review the FY2017 GFFM. Mr. Fred Philpot reviewed the process for developing this initial model. He had met with the City’s division manager and Director’s to review current line item budgets and to identify other expenses that may arise in the next ---PAGE BREAK--- Page 2 of 2 Ogden City Council Work Session: April 25, 2017 few years. Projected costs for new line items were included in the model. Historical financial data was also included. The initial model was presented to the Directors for review. Adjustments were made based on the Directors’ preferences, management experience, and assumptions they thought should serve as the basis for the model. January – March 2017 The Administration worked to develop the Mayor’s proposed FY18 Budget. During this process updated dated was provided to LYRB for entry into the FY2018 GFFM. The model was presented to the Directors for review. Adjustments were made based on the Directors’ preferences and management experience. April 17, 2017 The Financial Stability and Transparency Work Group received a presentation regarding the FY2018 GFFM. Because of the large amount of data included in the model and the complexity of the issues, the Work Group recommended that the Model be presented to the Council over several different work sessions, beginning with a general discussion regarding general principles such as tax rates, the effects of central assessments on property tax revenues, and historical trends for the City’s revenue sources. Proposal Ms. Laura Lewis and Mr. Fred Philpot from Lewis Young, Roberts and Burningham will present to the Council the first of several work session presentations regarding FY2018 GFFM. This model has been refined from the previous year and includes updated information and financial assumptions for the next five fiscal years. Initial discussion will focus on general principles such as tax rates, the effects of central assessments on property tax revenues, and historical trends for the City’s revenue sources. Later discussions will focus on the specific assumptions included in the GFFM and the forecasting of costs associated with additional needs for the City. Council Staff Contact: Janene Eller-Smith, (801)629-8165 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---