Five-Year Fiscal Plan

Overview

The City of Webster Groves launched a new five-year fiscal plan as a forecasting tool in January of 2022. At this time the tool only applies to the General Fund of the City. This tool provides policy-makers with an understanding of the impact of decisions in an immediate budget year on the future spending of the City. It also provides for a retroactive look at actual revenue collections and spending growth to inform the future forecast of the City. 

The Five-Year Plan is built on using the average growth rate from Fiscal Years 2018 to 2022. Those growth rates for both revenue and expenditures are available below in separate files.

5 Year Plan

General Fund Structural Deficit

The City of Webster Groves currently operates with a structural deficit in the General Fund. A structural deficit exists where recurring expenditures are growing at a rate exceeding recurring revenue growth. You can see the rate of growth for expenditures and revenues in the table to the right. The growth of the difference between revenues and expenditures is not sustainable. The Five-Year Plan - Structural Deficit Indicator below shows the need for cost reductions and/or revenue increases to balance the budget. 

Average Rate of Growth For 5-year Plan, FY18-22

Plan Version Expenditures Revenue
FY23 Q2 Update 3.5236% 1.9801%
FY23 Q1 Update with FY22 Soft Close 3.4475% 2.1447%
Adopted FY23 Budget 3.5705% 1.1059%
Proposed FY 23 Budget 3.5705% 1.2127%
January 2022 4.2861% 1.1059%
5 Year Plan Graph

The Indicator chart shows the five-year estimates in the following colors:

  • Red - Expenditure past actuals and estimated growth derived from the average pace of growth from the past five years.
  • Blue - Past year's revenue including transfers from other funds.
  • Green - Past and estimated revenue in the General Fund as derived from the average pace of growth from the past five years.
  • Yellow - A complete deficit reduction plan implementation of a $1M cut in expenditures and allowing no growth in future years.
  • Orange - The implemented deficit reduction plan as of 01.14.23 and its effect on the future structural deficit.

General Fund Five Year Plan Documents

  1. FY2023 Q2 General Fund 5-Year Plan
  2. FY2023 Q2 General Fund Revenue Trends
  3. FY2023 Q2 General Fund Expense Trends

For More Information, contact:

Eric Peterson
Assistant City Manager/Director of Finance & Administration