Page 17 - 2023-25 Citizen's Guide to the Moreno Valley Budget

BUDGET ASSUMPTIONS/

ENGAGEMENT ECONOMIC FUTUREConcerns

Based on the City’s long-range projections, the City will have to overcome the following budget assumptions.

• Expenditures continue to increase primarily due to Public Safety
• Revenue growth from existing sources is flattening, while future recessions are projected
• Economic Development key to balancing budget, but will not fund the priorities/needs identified by the community in
the past surveys. Economic Development helps to grow revenues to maintain services.
New revenues are necessary to provide enhanced services
• New revenues are necessary to provide enhanced services
The illustration below shows the budgetary gap in future years beyond this two-year budget cycle. Revenues and Expenses are
The illustration below shows the budgetary gap in future years beyond this two-year budget cycle. Revenues and Expenses are
forecasted to increase the same through 2029, but without economic development growth, the City services will be impacted.
forecasted to increase the same through 2029, but without economic development growth, the City services will be impacted.
200
FY
2028/29
FY
2026/27
FY
FY 2024/25
2022/23 FY
2027/28
150 FY
FY 2025/26
2023/24
MILLIONS 2019/20
FY
FY
FY
2017/18 2021/22
FY
100 2015/16 FY
FY 2020/21
FY 2013/14 FY
2012/13 2018/19
FY
2016/17
FY FY
2011/12 2014/15
50

Revenues Expenses *Revenues do not assume projected recession.
0

While focusing significant energy to attract and retain local businesses, the City will also contend with ongoing fiscal pressures:

• Although Moreno Valley works hard to protect funding for local services, Sacramento continues to find new ways to take
millions from cities like ours, while also imposing expensive new regulations without any funding to implement them.
• Riverside County continues to increase costs for key public services, including contract law enforcement.
• Fire protection costs are rising.
• The City must continue to re-invest in upgrading the City’s aging infrastructure.
• The City Council’s commitment to Pension reform continues to save millions of dollars every year. The City must also
contend with factors beyond its control such as revisions to CalPERS rate methodology which had previously smoothed
rate increases over longer periods.
• The General Fund must guarantee debt service payments on the police facility and other obligations of the current
Development Impact Fee accounts.
The City’s ongoing success in meeting fiscal challenges demonstrates the City Council’s commitment to resources prudently and
for maximum public benefit. The Council’s resolve, combined with highly engaged managers at all levels and a collaborative
relationship with our employees, will continue to serve us well over the next two fiscal years and beyond.

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