These decisions significantly influenced the City's capacity to increase spending for new <br />programs to address council goals, citizen concerns, or to resolve growing budget gaps within <br />departments in FY08 and beyond. Contrary to the forecast I brought to you last year, the <br />General Fund is expected to incur an operating deficit in each of the next six years. <br />To illustrate this change in financial condition, the FY07 Proposed Budget forecast presented <br />last year at this time is shown below, followed by the FY08 Proposed Budget forecast: <br />FY07 PROPOSED BUDGET -SIX-YEAR GENERAL FUND FORECAST <br /> Six-Year General Fund Forecast <br /> FY07 Proposed <br />15.0 <br />10.0 <br /> <br />5.0 <br />N <br />C <br />O <br />~ (5.0) <br />«y <br />(10.0) <br />(15.0) <br />(20.0) <br /> FY07 FY08 FY09 FY10 FY11 FY12 <br /> ~~AnnualOperating (1,649,000) (1,850,000) (109,000) 244,000 218,000 (16,000) <br /> Surplus/(Deficit) <br /> -~ -.Reserve for .9,333,000 7,483,000 7,374,000 7,618,000 7,836,000 7,820,000 <br /> Revenue Shortfall <br /> <br />FY08 PROPOSED BUDGET -SIX-YEAR GENERAL FUND FORECAST <br /> Six-Year General Fund Forecast <br /> FY08 Proposed Budget <br />15.0 <br />10.0 <br />_ 5.0 ` ~ <br />c <br />_ ~ . <br /> <br />_ (5.0) _ <br /> <br />(10.0) ` <br /> <br />(15.0) <br />(20.0) <br /> FY08 FY09 FY10 FY11 FY12 FY13 <br /> -rFAnnualOperating (2,525,832) (3,024,000) (2,766,000) (3,074,000) (6,295,000) (5,428,000) <br /> Surplus/(Deficit) <br /> --i- -Reserve for 6,066,616 3,042,288 276,288 (2,797,712) (9,092,712) (14,520,712) <br /> Revenue Shortfall <br /> <br />2 <br />