Healthy cash balance affords security against future uncertainty and allows for one-time investments into new programs.
The City’s finances are in good shape. The City produced its 2021 Q3 Financial Report recently and reviewed it with City Council during the Dec. 13 meeting.
The City has its highest ending fund balance since 2007 due to cautious financial management. The City reduced expenditures by about 9.1% in 2020 and observed only a 4.5% drop in revenue. Expenditure reductions were realized through hiring freezes, training and travel pauses, fleet and equipment expense reductions, and other measures.
Sales tax collection data reveals interesting economic insights. Construction-related tax revenue is up 32% year-over-year, and revenues from motor vehicle sales have increased by 83% from this time last year. The service sector including food & beverage-related businesses has rebounded nicely.
The City’s three largest revenue sources of General Fund operating revenues include sales tax (26%), property tax (18%), and utility tax (14%).
The City’s healthy financial picture has allowed capital investment projects like road and park improvements to proceed on schedule. Federal American Rescue Plan Act funds are being applied towards community programs rather than budget repair. A healthy cash balance allows for investment into one-time expenditures like the Economic Development Opportunity Fund in the works to fuel business resiliency.
The City of Lakewood’s budget and policies are public:
