As of June 30, 2022 the City remains in sound financial condition.
The City’s largest revenue source to fund our projects is income taxes and represents approximately 75% of the General Fund revenue. Through June 30, income tax revenue is 5.1% above 2021 collections. There have been decreases in income taxes from some of our larger employers due in part to some of their employees working from home. Those decreases, however, have been more than offset by income taxes collected from new employers. The City’s property tax revenue is 3.3% above estimate and the revenues from our other areas are close to or above estimates including our water, electric, golf course, and broadband services.
While our expenses are generally within budget, we are seeing significant delays in delivery times and overall cost increases. Like many businesses, we have seen a decrease in the number of applicants for our vacancies, as well as a decrease in the number of bidders for certain work. We have also had to re-bid some of our construction projects due to bids coming in significantly higher than originally estimated. To help offset these increases, the City has done an excellent job of obtaining outside funding from state and federal grants as well making use of the state purchasing program. The City has an AAA bond rating so we are able to borrow money for our largest projects at a lower interest rate. City Council also recently approved additional appropriations to allow staff to place orders well ahead of time to account for the delay in deliveries due to issues with the supply chain.