Despite robust reserves of nearly $37.8 million, some city officials remain concerned about having to borrow from the emergency fund to fill the operating deficit. Most revenues are projected to be flat next year, including property taxes. The city is predicting modest increases in hotel tax money, but officials say that will be offset by declines in projected investment earnings.
The council approved the budget, which was nearly 2 percent larger than last year’s spending plan, at a meeting Tuesday. ?Councilwoman Barbara Denny cast the sole no vote.
“I don’t think that a city of our means needs to show a deficit,” Denny said before the vote. “I think we owe it to the taxpayer to balance everything just as if we would run our household fund.”
Denny also said she was basing her vote, in part, to protest allocating $180,200 to city lobbyists and $138,200 in funding for a tunnel project. Denny actively opposed an advisory measure on the June 8 ballot that asked voters if they wanted to continue studying traffic-congestion relief options, including a tunnel. The measure failed.
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