RSG

Intelligent Community Development

Case Studies Fiscal Health

GENERAL FUND FINANCIAL SUSTAINABILITY – CITY OF GRAND TERRACE

With the potential elimination of redevelopment which accounts for 22 percent of the City’s General Fund activities, the City of Grand Terrace engaged RSG to perform an analysis of General Fund revenues and expenditures to mitigate a significant structural deficit. General Fund cash flows were prepared for a 20 year period, including monthly cash flows for 2011-12, based on the anticipated budget and the functions performed by department. Through a collaborative process, expenditures were modified based upon an analysis of functions performed by staff and best practices employed by similarly sized cities. The result was a series of proposed changes to fiscal policies, service levels, and a long-term restructuring of municipal finances that are currently being considered by the City Council.