Since 2008, the City has had a reduction of more than $13.7 million in revenue due to governmental changes. That includes.25% reduction in earnings tax and elimination of the local government funding from the State. In addition, the effects of the economy has provided an additional loss of $8million of revenue. Since 2008. The City has managed the $22 million reduction in revenue by operational cuts over the past 6 years; averaged to over $3.6 million per year. Today, the City is operating at the same budget request dollars as 2008 and is in fact maintaining more with less. There has only been an overall 1.6% increase in the budget since 2008 while managing the $22 million reduction in revenue, increased operational costs (not expenditures), and maintaining acceptable service levels. After making significant operational cuts and reductions of over 20 full time personnel through attrition, the City has been subsidizing the cost of safety and city services from the reserve fund at an average of $2 million per year. Even considering the significant cuts made in the past 6 years, and while maintaining the current service levels, the cost of those service levels is higher than the revenue brought in. Here are the differences from 2009 through 2014 (budgeted) of revenue brought in versus the cost of current operations:
- 2009 - $2.8 million
- 2010 - $1.4 million
- 2011 - $3.2 million
- 2012 - $2.8 million
- 2013 - $2 million
- 2014 - $2.5 million (budgeted)
At the end of 2015, it is projected the City will not be able to fund a 2016 budget at the current operational service levels; therefore an increase in revenue is needed, or a reduction in personnel and services will take place.