Finance commissioner lays out revenue gains and rising expenses as budget season begins

The finance commissioner delivered a detailed overview of the city's revenue streams and expense pressures as the budget season opened, emphasizing that revenues and costs are both rising.

Key revenue sources identified were property tax (largely fixed), sales tax (the largest variable source), mortgage tax and hotel‑occupancy tax. The commissioner said total revenues were about $41 million in 2020 and are now roughly $61 million, with sales tax rising from about $11 million to nearly $19.5 million. Mortgage-tax receipts peaked in 2021–22 and have declined as interest rates rose.

Expenses have grown from about $44 million to about $61 million, the commissioner said, with personnel costs driving most of the increase. Public safety (police and fire) accounts for a sizable share of the growth; other contributors include higher insurance and retirement costs, litigation-related liability insurance, utilities and new capital additions such as a third fire station. The commissioner said efforts to reduce energy costs (LED street-lighting, solar credits) are underway but urged departments to aim for level-funded budget submittals.

Councilors asked for follow-up materials and detailed charts; the finance office offered to set appointments and provide department-level budget guidance. The presentation also noted several lines of incoming state and federal aid and emphasized a roughly two‑month lag in sales‑tax receipts, which affects near‑term projections.

Next steps: departments will receive budget guidance and are expected to return budget requests consistent with the city's direction for the coming fiscal year.