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At a time of document revenues, the town’s monetary outlook is dimming a bit.
The Metropolis Finances Workplace now believes Portland may see between $9 million and $30 million in elevated prices for offering the identical providers subsequent yr, Finances Director Andrew Scott stated Wednesday. That is up from a possible $5 million to $25 million improve price range officers had been predicted.
Ought to the elevated prices come to cross, they might make for a troublesome finances season. Mayor Ted Wheeler had already directed the town’s common fund bureaus to supply of 5 % cuts of their subsequent price range requests, based mostly on the potential of a $5 million to $25 million deficit. It is unclear if Wheeler will modify that requirement.
Scott revealed the up to date finances figures in a gathering of A House For Everybody, a process pressure of officers all through the Portland space making an attempt to deal with the rising homelessness disaster. Whereas Scott famous higher-than-anticipated property tax income, rising enterprise taxes, and strong lodging tax income, he stated new labor agreements (together with a newly reached cope with the District Council of Commerce Unions, the town’s largest union group), rising pension prices, and better prices related to inflation might outweigh that progress.
Or perhaps it will not. The town additionally might see a large surplus as soon as once more subsequent yr. A greater concept of the place the town stands shall be out there when the finances workplace releases a proper price range forecast in two weeks.