Pleasanton’s Financial Forecasting Approach and Structural Budget Deficit Confirmed in Independent Review

Pleasanton's Financial Forecasting Approach and Structural Budget Deficit Confirmed in Independent Review

• February 24, 2025

Pleasanton, Calif. - At a February 20, 2025 workshop, the Pleasanton City Council received results of an independent financial assessment that validated the methodology used to develop the City's financial forecast and confirmed the City's projected structural budget deficit. The assessment was conducted by Eide Bailly, a full-service certified public accounting firm.

The independent report confirmed that the City's financial forecast follows standard methods used by local governments across California. As widely recognized consultants have developed the City's property and sales tax projections, Eide Bailly found no reason to change the existing growth rate assumptions.

The report recommended incorporating the City's infrastructure funding plan and other financial plans, including the ongoing Asset Management Plan, into future forecasts. This would create a more comprehensive financial outlook and further demonstrate the City's limited resources and significant long-term funding needs.

"The Eide Bailly report provides valuable insights, offering a clear and transparent assessment of our current options and opportunities," said Jack Balch, Mayor of Pleasanton. "It highlights areas for further exploration, ways to enhance communication, and strategies to ensure our community remains well-informed."

The report also confirmed the City's structural budget deficit, worsened by underfunded infrastructure and facility maintenance. Current projections show an average General Fund shortfall of approximately $10 million per year over the next eight years. To close this gap and maintain a balanced budget, the City must identify new revenue sources while also significantly cutting costs.

"It was a positive step forward to hear that independent financial advisors conclude that while the City has financial problems, it is doing all the right things to create fiscal stability for the organization and community," said City Manager Gerry Beaudin.

The City values input from the Pleasanton community and encourages all residents to stay engaged and informed and attend City Council and other public meetings. Find additional information on the City's Budget Development webpage.

View the complete independent financial assessment report here.