Phoenix has a balanced budget going into next fiscal year. Residents will not have to pay any new taxes and will even see some improvements in services, including an extension to the light rail and more police officer training. But the city's finances are not so strong in the long term.
This week, the council will dig into the revised budget and consider how to plan ahead for the looming shortfall, projected to be anywhere from $36 million to $63 million. It's the result of the growing price tag of pensions for firefighters and policemen, as well as the state shifting more of its costs onto cities.
Phoenix City Manager Ed Zuercher said having a balanced budget this year gives the city more breathing room.
“There is no one magical $30 million, $40 million solution," said Zuercher, “It’s got to be a lot of small things added together, stitched together. We know the challenge we face and we know it far enough in advance."
Zuercher is recommending $300,000 be put in reserves this year to begin to address the deficit. It is still too early to say whether the city will have to cut back services in fiscal year 2016-2017, said Zuercher. One positive sign is the growing revenue from hotel and others tourism related activities.
Going forward, the city will examine cost-saving measures like changing healthcare benefits, selling off city owned property and improving collection of revenue.
