BIB_2024

Looking to the Future

Like many organizations, inflation is affecting costs. We must face the fact that General Fund expenditures will outpace our anticipated revenues in future years. Balancing this year’s budget presented several challenges including: • Decline in Sales Tax Revenue: The continuous rising cost of living has led people to cut back spending on dining out and shopping, choosing instead to stay home or opt for less expensive options. This reduction in consumer activity directly impacts the City’s sales tax revenue. • Decline in Gas Tax Revenue: With more drivers switching to fuel-efficient vehicles and being forced to cut gas expenses amid enormously high gas prices, there has been a decrease in gas tax revenue. This means less funding available for maintaining roads and transportation systems. • Ongoing Lighting and Landscaping (L&L) Deficit: The revenue received from L&L funds have remained fixed since 1996, requiring the City to spend $3.1 million this year to subsidize the costs. This subsidy includes funding for playground equipment replacements and landscape area maintenance. • Increased Costs: Inflation is impacting all costs including increases in police services, maintaining aging infrastructure, contracts, and energy. The costs to deliver essential public services continues to rise while revenues are declining.