For the first time since 2008, many cities are increasing the size of their workforce, according to a survey of city finance officers, released October 14 by the National League of Cities.
Other key findings of “City Fiscal Conditions in 2014”
- Eighty percent of respondents report that their cities are better able to meet fiscal needs in 2014 than in 2013.
- Ending balances are improving—with city finance officers project ending balances at 22.4 percent of expenditures—but still below 2006 levels.
- Property tax revenue is anticipated to increase in 2014 at a rate of 1.6 percent, the first positive growth in five years.
- The most positive influences on city budgets are the health of the local economy (81 percent) and the value of the local tax base (73 percent).
- The negative factors on FY 2014 budgets are infrastructure needs (52 percent); health benefit costs (51 percent); and pension costs (47 percent).
NLC President Chris Coleman, mayor, St. Paul, Minnesota, said that a local, state, federal partnership is needed to address the nation’s infrastructure needs. Having to close a structurally unsound bridge in his community hurts the local economy, he added.
Dan White, senior economist, Moody’s Analytics, noted that the percentage being spent on infrastructure is lower than at any time since World War II.
Mayor Coleman added that a stable, long-term plan is needed to address infrastructure needs. He also urged Congress to pass the Marketplace Fairness Act to give local government the authority to collect the taxes that are already owed. “It’s not a new tax, it’s a due tax,” he said.
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