CITY COUNCIL WORKSHOP AGENDA PACKET

CITY OF PLEASANTON, CALIFORNIA 15 | eidebailly.com 1 The 5% adjustments to total expenditures illustrated are to the total amount of expenditures excluding transfers. As can be seen in the chart, a 5% change in the total expenditures in future years’ expenditure growth rate has an expected and consistent positive or negative impact on the forecast in future years. As has been discussed, the fundamental nature of a financial forecast is to utilize the information available to make the best estimates of future variables that can and will be influenced by factors beyond the City’s control such as recessions, changes in external costs, and changes in labor costs. Absent any additional information not considered by the City’s Finance Department to date that merits consideration now, the further refinement of the expenditure forecast in the year ahead can explore a greater level of detail and validate the trends shown in the current forecast or identify where adjustments may be required. During the course of our analysis, we observed no data or information that suggests that the City’s current projection is not informed by the City staff’s best professional judgment at this time given the information available and the level of detail contained in the current financial forecast. (30,000,000) (25,000,000) (20,000,000) (15,000,000) (10,000,000) (5,000,000) - 2026 2027 2028 2029 2030 2031 2032 2033 ANNUAL SURPLUS/(SHORTFALL)TOTAL EXPENDITURES SCENARIOS 1 CITY PROJECTION 5% INCREASE 5% DECREASE Page 24 of 33