To:    Mayor Vera Katz

   Commissioner Jim Francesconi

   Commissioner Randy Leonard

   Commissioner Dan Saltzman

   Commissioner Erik Sten

   City Auditor Gary Blackmer

From:  Jennifer Sims, Financial Planning Manager

Date:  December 15, 2003

Subject:  Resolution to Adopt the FY 2004-05 Financial Forecast for the General Fund

The attached resolution formally adopts the General Fund Financial Forecast for the fiscal year 2004-05 budget development process. The Financial Forecast summarizes the estimated resources available for the upcoming fiscal year budget. Financial Planning will update the Financial Forecast throughout the FY 2004-05 budget process for new information and other changes.

The FY 2004-05 Financial Forecast shows a forecast to forecast decline of about $9.996 million in ongoing resources such that forecast revenues are insufficient to fund current appropriation levels and set-asides within the General Fund. The decline in resources requires a $2.818 million reduction in current General Fund appropriation levels and translates into approximately 1.1% reduction in ongoing requirements.

Please contact me if you have any questions regarding this matter.