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112 Cityof <br />Om Louisville <br />COLORADO • SINCE 1878 <br />CITY COUNCIL COMMUNICATION <br />AGENDA ITEM 2B <br />SUBJECT: <br />DATE: <br />PRESENTED BY: HEATHER BALSER, CITY MANAGER <br />KEVIN WATSON, FINANCE DIRECTOR <br />REVENUE ASSUMPTIONS & EXPENDITURE TARGETS <br />J U LY 23, 2021 <br />SUMMARY <br />The next step in developing the 2022 Budget, the Capital Improvements Plan, and the <br />Long -Term Financial Plan is to update the revenue and expenditure estimates for 2021- <br />2022 and to establish longer term revenue assumptions and expenditure targets for 2023- <br />2026. <br />The departmental operating requests for 2022 were included in the 2021-2022 biennial <br />budget that was developed last year. Departments have requested some modifications <br />to their original 2022 operational budgets and those changes have been incorporated into <br />the current 2022 estimates. Please note that these estimates do not reflect the City <br />Manager's final recommendations. They are just the starting point for deliberations. The <br />City Manager's Recommended 2022 Budget will be presented in September. <br />Staff has updated all revenue estimates for 2021 and the assumptions for 2022-2026. <br />Expenditure target percentages have been applied to the 2022 estimates in order to <br />develop expenditure projections for 2023-2026. <br />The following table is a Revenue Projection Dashboard dated July 15, 2021. This <br />dashboard was reviewed by the Finance Committee at their July 19 meeting. <br />The dashboard contains most City-wide revenue sources totaling approximately <br />$100,000 or more per year. For each revenue source, a 2021 annual projection is <br />compared to the 2021 amended annual budget and to the 2020 actual annual amount. <br />Variances are expressed in both dollar amounts and percentages. Positive variances <br />exceeding $100,000 and/or 5% are highlighted in green. Negative variances exceeding <br />$100,000 and/or 5% are highlighted in red. <br />Projections are based on a simple trend analysis using actual collections during the first <br />six (6) months of the year. For some revenue sources, projections are based on forecasts <br />made by the departments that assess and/or collect the revenue. These projections are <br />highlighted in orange. In all other cases, projections are based on the Finance <br />Department's trend analysis. <br />CITY COUNCIL COMMUNICATION <br />