Some residents have voiced concern about the prospect of a recession during the coming year. With the city poised to approve a budget based on record high revenues, it's perfectly reasonable to ask if we are being conservative enough with our projections and our planned spending so that we don't get caught short.
The brief answer is, "Yes, we got this!"
But you don't have to take my word for it, even though my Council colleagues and I certainly considered the possibility of a recession when we scoured the proposed FY23 budget line by line. Instead, I urge you to read the City Talk column in today's Red Rock News. Cheri Wright, our amazing Director of Financial Services, has once again done a marvelous job of explaining dry numbers in a way that reveals their relevance to the issues that really matter to us, using comparisons that we can easily identify with.
For just one example, on this very subject of recession concern, Cheri explains that if her already conservative projection of FY23 revenues turned out to be off by a whopping 60%, we would still have enough income to fund everything in our budget, without touching a penny of reserves. And for comparison, she points out that in the four years of the Great Recession—from the very peak just before it hit to the lowest point before it started to recover—our revenues decreased only 15%!
Please do read the article for much more straight and reassuring talk about how the budget is anticipating inflation, ensuring we can move on key land acquisition opportunities, stay ahead of costly wastewater infrastructure maintenance, and more, in addition to funding the traffic mitigation, housing, transit, sustainability, and other projects that are more "front of mind" for residents.
Photo by D koi on Unsplash.