Income taxes are projected to increase by $4.5 million over 2022, which is a higher than typical projection, said Timmer.
“From a thorough analysis of actual receipts for 2020, 2021, and 2022 year-to-date we felt comfortable increasing the 2023 estimates,” he said. “When we looked at the actual receipts we applied, our realized annual growth rate to the 2020 estimate number and progressed it through 2023.”
Job growth anticipated is another reason for the higher projection, including the expansion of Koch Foods, which will progress through 2023 as operational lines beginning in that fiscal year.
“Also, we have seen growth and expansion through multiple industrial sectors of the city,” he said.
City Council started its budget discussion at the end of last month, and they’ll continue at its meeting on Monday. A vote on the budget is set for Dec. 5.
The $102 million projection will be the first time the city’s estimated revenues will top $100 million, which could grow as speculative building projects, like the Fairfield Commerce Park, come online.
“We hope that continued growth from the expansion at Fairfield Commerce Park and Koch Foods drives continued revenue growth,” Timmer said. “The Fairfield Commerce Park project continues to attract interest from a variety of different business sectors. We are excited about their continued growth within the city of Fairfield.”
This 2023 budget reflects the city’s priorities as City Council reinvests in the community and continues “our commitment to modernizing our public safety forces.”
“The city took prudent measures during the pandemic to position itself to endure unpredictable economic times,” Timmer said. “We continue to approach future spending with that concept at the forefront of our decision-making process.”
Expenditures for the city in the upcoming year are $6.7 million and is driven primarily by increases in the fire and police departments and public utility debt. Expenditure is projected to be just under $88.4 million, which is a $6.7 million increase.
The fire department spending will be up by $1.9 million with the approval of the May 2022 levy and the award of the federal staffing grant in September. This will allow the department to transition into an all full-time staff, and there will be 12 additional firefighters, nine of which are funded by the staffing grant for three years.
Expected projections for the police department will be increased by $1.1 million.
“This is driven primarily by personnel and related expenditures,” Timmer said. “The police department added one new officer and we have budgeted for contractual wage increases.”
Public utilities’ debt will increase by $1.85 million. Fairfield will make two principal payments in 2023 related to older public utilities debt. Also, the city’s first payment is due on the wastewater treatment plant multipurpose facility.
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