2018 Adopted Annual Operating & Capital Improvement Budget

LONG-RANGE FINANCIAL PLANNING
Overview
Although the City legally appropriates its budget on an annual basis, the process includes discussions regarding multiyear
financial planning based on the City’s Comprehensive Plan, Transportation Plan, Master Regional Drainage Plan,
individual Park Development Master Plans, and Capital Improvement Plan. Such plans assess the City of Greenwood
Village’s short and long-term infrastructure needs and strategic priorities. Where appropriate, the recommendations and
initiatives provided in these plans have been incorporated into the planning and development of the annual budget and
long-range financial forecasts.
The purpose of the long-range financial outlook is two-fold. First, it provides a forward-looking view of the operating and
capital improvement budgets, allowing City officials and others to evaluate the long-term sustainability of the
organization. In addition, it provides a starting point for future decision-making regarding the budget by identifying the
balance between potential spending needs and the projected revenue outlook, making it a key tool for financial planning.
The tables attached to this document are updated each year as the revenue and spending outlook becomes clearer.
The City uses this information as part of a package of tools that:
Identify preliminary spending priorities for future years;
Incorporate necessary budget adjustments into the long-range financial projections;
Ensure that both additions and reductions to the budget are sustainable;
Maintain options to deal with unexpected contingencies; and
Continue advance planning to anticipate factors affecting revenues and service needs.
Assumptions
The five-year projections provided in these financial outlook scenarios reflect numerous assumptions related to
revenues and expenditures in 2018 and beyond. These assumptions represent a reasonable starting point for estimating
the long-term financial status of the City. However, it is important to note that the assumptions and resulting projections
will change over time. Even relatively minor changes in key variables can cause a significant change in the long-term
outlook. For example, a 1% change in revenue for any given year could change the projections for that year and all
future years by approximately $500,000. All estimates included in this document are based on data available at the
time of development. Experience shows that significant changes in the estimates are likely as revenue and expenditure
assumptions change over time.
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