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Rising costs may pinch city budget

Trying to keep up with market pay
2020_08_17_LL_longmont_council_chambers
Photo by Macie May

 

Sales and use tax projections could generate at least $5 million in new ongoing revenue in Longmont’s 2023 budget, the city council was told Tuesday night.

A good chunk of that funding  - at least $3 million - could be eaten up by higher compensation costs for employees, Jim Golden, the city’s chief financial officer said. 

Efforts to keep and attract city employers by paying them salaries at market or better will have a huge impact on the 2023 budget, added City Manager Harold Dominguez. “Folks are actively recruiting our staff. We have had poaching of staff when in the past we did not have poaching. It’s something I haven't seen.”

Councilors heard an initial presentation on the proposed 2023 city budget Tuesday night. The budget making process will continue through the spring and summer until a final budget is presented for city council approval in October.

Longmont is seeing growth in sales and use tax revenue through the first quarter of this year, Golden said. “We have a decent amount of ongoing revenue,” Golden told the council.

However, rising prices for materials will also cause problems in the new budget, Dominguez said. 

“I don’t think we have had a capital project come in at budget,” Dominguez said.