2004 budget cuts
Sales tax revenues, which fund most City services, were lower in 2002 and 2003 than the previous year's collections and lower than budget projections. In response, the City cut its 2004 budget an additional $3.3 million from the General Fund. The General Fund supports many of our community's most important services such as police, fire, libraries, parks maintenance, the Senior Center and much more.
Sales tax collections The trend in sales tax collections took a more positive turn in 2004. Sales tax receipts increased by 3.3 percent over 2003. In addition, the unemployment rate in Fort Collins fell from 5.8 percent in November of 2003 to 5.0 percent in November, 2004.
Community Panel looks at local economy To address the economic health of the community, City Council established a citizen group called the Economic Vitality and Sustainability Action Group, or EVSAG. After months of study and discussion, the group presented over 100 tactics and strategies for strengthening our local economy.
Lifestyle Center
A new lifestyle shopping center in Fort Collins was proposed, which could help generate additional sales tax revenues needed to maintain our community's quality level of public services.
Alternative funding solutions
As it does every year, the City sought grants and engaged in partnerships to supplement revenues. The City leveraged over $12 million in federal, state and local grants last year for programs and services including School Resource Officers, North College and West Elizabeth Street Improvement Projects, down payment assistance to low-income families, and improvements to our museum, trails, air quality and more.
2005 budget adjustments
Last year, City Council made some adjustments to the 2005 budget, most notably allocating the funds necessary to open a new fire station in south Fort Collins. Station #14 had stood vacant for a year due to limited revenues.
For 2005 there will be no pay increases for the vast majority of City employees for the third year in a row. The City continues to face financial challenges and uncertainties as it begins development of the 2006-2007 budget this spring.
