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CITY OF PLEASANTON, CALIFORNIA <br /> <br />12 | eidebailly.com <br />NO. OBSERVATION DISCUSSION <br />4 <br />The City previously budgeted new <br />revenue with uncertain timing <br />related to the recently opened <br />Costco store. <br />As a best practice, budgeting for revenues related to projects that are <br />speculative or under construction should be avoided, as delays in the <br />projects then require mid-year reductions to the revenue budget. If <br />there are no delays and the revenue is realized as expected, then a <br />positive mid-year adjustment to the revenue budget can be initiated. <br /> <br />However, it is also prudent when preparing a financial forecast to <br />include known, likely future revenue sources or revenue reductions in <br />the revenue forecast. Ideally these should be included in a scenario <br />analysis rather than in the baseline scenario, but awareness of the <br />positive and negative impacts of these possible changes in revenues (or <br />expenditures) is critical and appropriate. <br />5 <br />Funding needs for infrastructure, <br />facilities, vehicles, and equipment <br />are not currently presented to <br />stakeholders with detail by fiscal <br />year and by fund/funding source. <br />Although the Draft Infrastructure Plan effectively reflects the total cost <br />estimate for necessary improvements, it does not differentiate between <br />the funding sources for the anticipated $900 million need. Additionally, <br />illustrating the peaks and valleys in funding requirements by year can <br />more effectively illustrate the variable funding needs in each year. <br /> <br /> <br />Page 21 of 33