The City Council Finance Committee this Tuesday will have the chance to go through the details of Mayor Paul Coogan’s five-year financial forecast.
When voters approved the city charter at the 2017 election, Article 6.9 called for the submission of a five-year financial forecast. Mayor Coogan sent the spending proposal to the council on February 5.
“The Forecast is based upon revenue sources which can be reasonably anticipated as well as the expenses for services that we currently provide within our City and School Departments,” said Mayor Coogan in a letter addressed to councilors.
The city’s current fiscal year budget is set at $315,650,200. The administration is anticipating the following revenue projections for the next five years:
- FY 2021: $334,139,816
- FY 2022: $351,228,642
- FY 2023: $364,088,910
- FY 2024: $376,390,713
- FY 2025: $389,064,608
In four of the five years, the city is projecting a budget surplus, with the only deficit occurring in FY 2021. Here are the annual spending numbers, along with any deficit or surplus:
- FY 2021: $338,923,725 ($4,783,909 deficit)
- FY 2022: $350,666,151 ($562,491 surplus)
- FY 2023: $362,447,546 ($1,641,364 surplus)
- FY 2024: $372,575,147 ($3,815,566 surplus)
- FY 2025: $384,395,015 ($4,669,593 surplus)
“The City expects to receive revenue increases through sources such as cannabis excise taxes from recreational sales and local receipts from cannabis medical sales, new growth in personal and real property acquisitions. Expense reductions will result from improved efficiencies,” the mayor said.
The mayor also said his administration is looking at minimizing increased health care costs, working with the school department on net school spending and transportation costs, and beginning talks with city unions that have open contracts. Despite the current call for a deficit in FY 2021, in the end, Mayor Coogan expects to send the council a balanced budget.
“Overall, our 5-Year Financial Forecast is sound and reflects the City’s ability to address its challenges and opportunities with the resources necessary for controlled growth and spending,” the mayor said.
In the finance committee, the city council is also expected to discuss the city’s five-year capital improvement plan, which was distributed to the council on January 16.
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