1. Introduction of Five Year
Financial Forecast
Presented to the
City Council by
Karen Montgomery
Assistant City Manager
March 10, 2009

2. Introduction of Five Year Financial Forecast
1/17/2019 5:15 AM
Introduction of Five Year Financial Forecast
Second Annual Economic Forum
Starting point: Re-estimate through Jan.
Re-estimate details scheduled for 3/24
Forecast illustrates growing difference
between revenues and expenditures
City Council began addressing
challenges with FY 2009 budget
Economic downturn now anticipated to
severely impact City of Fort Worth
FY 2010 Budget process will address
SAY health is 1% is only about $270000
Personnel services are 69% of budget

3. RETIREE HEALTH CARE COST GASB # 45
1/17/2019 5:15 AM
RETIREE HEALTH CARE COST GASB # 45
Requires the "measurement, recognition, and display of other postemployment benefits, expense/expenditures, related liabilities and note disclosures in the financial statements." 2007 Comprehensive Annual Financial Report
Effective for the City of Fort Worth for year ended 9/30/08
Unfunded Actuarial Accrued Liability: as of 9/30/08
$986 million
Annual Required Contribution (73% to General Fund; 27% to other funds)
$103 million
Current payments for premiums/claims
($20 million)
Additional payments (in FY 2009 budget)*
($ 5 million)
Remainder to be funded annually ($55 million for GF or $10.9 million for 5 years)
$ 78 million
* City Council increased contributions and eliminated funding for employees hired on or after 1/1/09 to begin addressing liability

4. Employees Retirement Fund Anticipated Contribution Increases
1/17/2019 5:15 AM
Employees Retirement Fund Anticipated Contribution Increases
Substantial losses due to market downturn in 2008 (29.3%)
Actuarial valuation with updated contribution requirement not available until 4/22/09
Conservatively estimated additional City contributions of 2% in FY 2010 and 2.24% in FY 2011
Brings total average contribution rate to 20%
No estimate of potential additional employee contributions
Results in an additional $5.4m in 2010, and $6.4m more in

5. Summary City Council took longer term approach with the FY 2009 budget
1/17/2019 5:15 AM
Summary
City Council took longer term approach with the FY 2009 budget
Began making difficult decisions
More challenges ahead, but easier based on FY 2009 decisions
City of Fort Worth has overcome challenges in the past, will do so again
Will prioritize services to minimize impact on community with FY 2010 Budget