Quote:
Originally Posted by Roughneck
Except the city is still growing. That means even a budget increase could still need to result in a reduction in services. This isn't something 'dying businesses' or 'household budgets when times are tight' have to deal with.
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As the city expands the tax base should grow. If the tax base isn’t growing at the rate service costs are increasing than the city is not charging enough for new development. Part of that tax base growing is increasing value of existing property as it becomes more desirable. So in a tax neutral expanding environment the average tax payment of existing property should go up while new property at the outside becomes the lowest taxed housing. This is why inner city redevelopment is so attractive as it allows the addition of above median cost housing to the tax base.
I think the key metric budgets should be evaluated against is pop growth plus inflation which the city as almost met for operating budgets despite the false info graphic that was circulated a few months ago. Where they city has significantly increased spending is capital spending.
They could have chosen to defer capital spends at these times. Though with Capital projects their is a Keysian affect as the city can borrow for capital projects.
In short the city could limit the city budget to pop growth plus inflation for both Capital projects and Operating costs. They choose not to.