The Carmel City Council will probably like what it hears Tuesday about city finances.
A five-year forecast prepared for a council budget workshop paints a positive picture, with more revenues projected — including $2 million annually from a sales tax increase approved in November — and more spending money for services, maintenance and infrastructure.
"In general, this year's five-year forecast is healthier than prior forecasts," the report by City Administrator Jason Stilwell says.
While passage of the 1 percent Measure D sales tax is the primary reason for the rosier outlook, the report says, "the city continues to see strengthening economic conditions leading to increasing revenue projections."
Over the next five years, the report says there should be "a steady balance" between revenues and expenses.
Three primary sources of city money — property tax, sales tax and hotel room tax (transient occupancy tax) — all are projected to grow next year. And all revenue is going to increase by 3 percent annually for the next three years and then by 5 percent in 2016-17 and 2017-18, the report says.
After falling nearly 7 percent during the recession, Carmel revenue has slowly rebounded and has returned to pre-recession levels, the report says.
Salary costs will be relatively flat, but health insurance costs will increase 10 percent a year and state pension rates will rise by 5.25 percent a year, the report says.
The council also is receiving a five-year capital improvement plan that spells out planned spending for construction projects, equipment purchases and other city assets.
The plan identifies 71 projects, which it says will represent a $10.2 million city investment over the next five years.
Big projected outlays include $634,000 for streets and roads; $300,000 for a storm drain at Santa Fe Street and Fourth Avenue; $200,000 for Forest Theater renovations; and $275,000 for Scenic Road restrooms.
Larry Parsons can be reached at 646-4379 or firstname.lastname@example.org.
If you go
·What:Carmel City Council meeting
·When:4:30 p.m. Tuesday
·Where:Council chambers, Monte Verde Street
If you go