Financial forecasting involves projecting future revenues, expenditures, and financial conditions to inform planning and decision-making. Municipal forecasts typically cover multiple years (often 5-10 years for long-term planning) and consider factors including economic conditions, population growth, inflation, assessment growth, planned capital projects, debt servicing, and policy commitments. Forecasts help answer questions like: Can we afford planned infrastructure investments? What tax increases will be needed to maintain services? When will reserves need replenishment? Are debt levels sustainable? Forecasting inherently involves uncertainty—economic conditions change, populations grow faster or slower than expected, and unforeseen costs arise. Good forecasting acknowledges uncertainty through scenario analysis (optimistic, expected, pessimistic cases) and regular updates as conditions change. Financial forecasts inform strategic planning, capital budgeting, and council decisions about service levels and taxation.