CITY OF GRAND TERRACE
GENERAL FUND SUSTAINABILITY MODEL AND LONG-TERM BUDGET STRATEGY


Following the loss of redevelopment which was backfilling the General Fund since incorporation, Grand Terrace retained RSG’s services to prepare a budget model and recommendations for scaling the City’s service model to fit within the essential services needed by the community of approximately 13,000 residents.  Initially, RSG approached this with an evaluation of the types and nature of revenues and expenditures in the General Fund, and then prepared a fiscal model comprised of monthly, annual and long-term budget forecasts.  This model uncovered a severe structural deficit and the need for immediate reductions in service contracts and staffing levels.  RSG led presentations to the City Council in both private and public meetings, as well as discussed the City’s fiscal position with City staff in an all-hands meeting to provide an opportunity to address questions and provide additional transparency.  Several, but not all, of RSG’s recommendations for reductions were adopted by the City Council.