Vagim on city finances
Revenues are declining; sales taxes are down. The slumping real estate market could force a revaluation of homes in Fresno decreasing property taxes and lowering city revenues even more. With Fresno already in massive debt* the city must reprioritize to brace for the possibility of a further decrease in revenue.
One way to slow down the debt is delay the sale of an additional $750,000,000 in bonds the council has already approved. Another is to have the Redevelopment Agency pay back its large debt to the city. Raising taxes will not eliminate debt and nether will selling more and more bonds. Bonds are the credit card of government and this city has run up a huge tab.
*“The city has a deficit of more than $66,000,000 (unrestricted net assets) shortfall with respect to meeting the government’s ongoing obligations to its citizens and creditors,” City of Fresno’s Comprehensive Annual Financial Report of 2007