FY 2425 2526 Recommended Operating Budget

The chart below shows the Consumer Price Index for All Urban Consumers (CPI-U) since March 1982 to March of 2024:

Historical CPI

350.0

9.0%

8.0%

300.0

7.0%

Hundreds

250.0

6.0%

5.0%

200.0

4.0%

150.0

3.0%

2.0%

100.0

1.0%

50.0

0.0%

0.0

-1.0%

Index 1982

Annual % Change

Source: U.S. Bureau of Labor Statistics

Overall, high inflation is having a significant impact on the City’s budget. Even though the City recently negotiated new two-year labor agreements with all groups which we consider competitive, the impact from these agreements is felt beyond the end of the term of the agreements. Besides personnel, other items such as electricity have seen their costs increase drastically over the past few years. The cost of electricity is projected to increase by $1.5 million or 52% for all funds in FY 24 25 from just a few years ago (FY 21-22). To put this in perspective, the increase in the General Fund for electricity is enough to hire an additional three police officers.

14 BUDGET MESSAGE