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SUBJECT: PARKS FUND — LONG-TERM FORECAST STRUCTURAL ISSUE <br />DATE: JUNE 11, 2025 <br />Financial Policy 5.3 — Balanced Budget (link) <br />Financial Policy 5.3 States the following; <br />PAGE2OF5 <br />"The City's definition of a balanced budget requires each fund's revenue plus <br />appropriated fund balance/working capital to be equal to, or greater than, each fund's <br />total appropriations. However, it is the City's intent to go further and develop structurally <br />balanced budgets for the General Fund and the other major operating funds (excluding <br />capital project funds). In a structurally balanced budget, annual recurring revenue will be <br />projected to equal or exceed annual recurring expenditures for each fund. If a structural <br />imbalance (recurring expenditures exceeding recurring revenue) should occur in the <br />General Fund or in any of the major operating funds, a plan will be developed and <br />implemented to bring the budget back into structural balance". <br />The approximate structural deficit or imbalance for years in the Long -Term model are <br />demonstrated in the following Table. The fund's structural imbalance shows an increasing <br />trend, with the annual deficit growing from $18,436 in 2026 to $166,108 by 2030. <br />Table 1: Structural Imbalance/Deficit by Year <br />Year Structural Deficit - $ <br />2025 - <br />2026 $ 18,436 <br />2027 $ 63,118 <br />2028 $ 95,138 <br />2029 $ 129,458 <br />2030 $ 166,108 <br />Total $ 472,258 <br />FINANCE COMMITTEE COMMUNICATION <br />