Reference no: EM131242000
Write a memo to the city leadership that summarizes the sources of revenue and takes account of the following:
Deterioration of revenue base
Internal procedures or legislative/board policies that may adversely affect revenue yields
Over-dependence on obsolete or external revenue sources
User fees that do not cover the cost of services
Changes in tax burden
Lack of cost controls and poor revenue estimating practices
Inefficiency in the collection and administration of revenues
Suggest that the leadership explore the following possible reasons for the lack of balance between revenues and expenditures.
Excessive growth of overall expenditures as compared to revenue growth or growth in wealth (personal and business income)
Undesirable increases in fixed costs
Ineffective budgetary controls
A decline in personnel productivity
Excessive growth in programs, which creates future expenditures
Community needs and resources encompass economic and demographic characteristics, including population, employment, personal income property value, and business activity. Examine the city's demographics and economics characteristics in order to identify the following:
A decline in the tax or revenue base
A need to shift public or customer service priorities
A need to shift policies because of a loss of competitive position
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