The City is seeking a qualified consulting firm to conduct a thorough validation of the City’s General Fund Five-Year Forecast, which is developed annually. The Forecast includes projections for both revenues and expenditures based on a set of assumptions. The selected firm will be tasked with reviewing these assumptions, analyzing costing methodologies, identifying potential risks and issues, and providing recommendations. The scope of services includes the following tasks: • Review the City’s current Five-Year Forecast and supporting documentation. • Understand the methodologies and assumptions used in the projections for revenues and expenditures. • Validation of assumptions • Revenue Assumptions: Validate assumptions related to major revenue sources, such as property taxes, franchise fees, fees for services, and other sources of income. • Review historical trends and economic indicators. • Expenditure Assumptions: Validate assumptions related to major expenditure categories. • Consider historical cost trends and inflation factors. • Evaluate potential cost drivers such as population growth, changes in service levels, and regulatory requirements. • Economic and Financial Environment Analysis • Conduct a risk analysis to identify uncertainties or variables that may cause deviations from forecasted revenues and expenditures.
