Frequently Asked Questions - Q36


Question:

How is it fair to require that the City use a previous year’s combined rate of growth in population and inflation for computing the allowable increase in the current year? In the face of constantly increasing population and inflation couldn’t the City find itself to be occasionally behind in reasonable allowable growth rate for total revenues?

Answer:

Bear in mind that the way the formula works is that the City is allowed the trend line, which should not be terribly understated on a cumulative basis. If it becomes so in a given year, then the City can go to the voters, and no doubt would receive approval for an upward adjustment.



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