City Spending has been Growing at Twice the Rate of Inflation

Mac has made the Financial Advisory Committee’s recommendations available at his site. Spoiler alert! This post contains the money quote (heh), from FAC member Tom Teresinski.

Tom Teresinski
Overview – A Perspective

I. Spending – Per City Report: (000)

General Fund – Spending (1998): $14,535.8;
(2009) $28,167.0
% Growth: 93.8
Avg % Increase 0ver 11 yrs: 8.5%
Avg % CPI – estimated: 3.0%
Avg Rate of Increase Above CPI: 5.5%

II. Comments:

Given that the City has historically spent more than 2 times the rate of inflation over the last 11 yrs indicates that we have a spending problem. Since these costs are 85% personnel this will be a major component of the review required.

Even if this has made you speechless, surely you’ll be recovered by next week. See you in Council Chambers Monday at 7 p.m. for the public hearing on the FY2009 budget.