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5.5. SR 04-12-2010Item # 5.5. c ~1i1 ~~.~ River MEMORANDUM TO: Mayor and City Council FROM: Tim Simon, Finance Director DATE: April 12, 2010 SUBJECT: Financial Model Review At the completion of every yeax, Planning Manager Jeremy Barnhart and I update the long- term financial model for the City's general fund for the next 10 years. As you recall, the model is extremely flexible and different scenarios can be incorporated and discussed. The model contains the following information: • Projected growth over the next 10 years. Growth patterns are exclusive of the gravel mining area. • Projections on tax abatement, tax increment, and various other levy effects. • As a model, all assumptions can be quickly changed to ascertain key variables that affect our budget position such as inflation, market rate increases/decreases and new levies. The modeling is intended to serve as a long-term financial management tool and this presentation is to give the Council an update on the model. This model is used in conjunction with the Capital Improvement Plan (CIP) discussions that will start taking place later this year.