City’s Financial Picture Brightens
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Finance officials are now forecasting a brighter scenario than first projected for the next fiscal year, prompting City Council members to postpone a ballot measure on whether to raise utility taxes.
Previous projections had shown that the deficit could reach $3 million next year, but officials said this week that the city might only be in the hole by $1 million to $1.5 million. That prompted officials to consider asking voters in June to approve a tax increase.
The city’s entertainment and auto sectors have been holding steady, however, which has improved tax revenue, Finance Director Greg Beaubien said.
Combined with an unexpected credit of $1.2 million from the state’s retirement system, the city’s outlook is better than officials had hoped.
Council members canceled a Feb. 25 hearing on the utility tax issue but are still considering a ballot measure in November.
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