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Revenue sources

The question of where Fountain Hills might find new revenue streams is a big one and, based on the recent budget update provided to the Town Council, a very important one in the coming years.

As Finance Director Craig Rudolphy pointed out to the Council during its April 18 meeting, the money coming in does not match the money going out for the upcoming budget, and that gap is only expected to widen over the course of the next decade.

The tricky part (and good news for the current year) is that making these types of budget predictions isn’t exactly a perfect science. For instance, it has previously been estimated that the current year’s budget would see a $5.5 million shortfall in need of being addressed. Most recent estimates put that figure closer to $3.7 million. That’s still a pretty penny to come up with, but at least the burden is nearly $2 million less than expected.

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Revenue sources

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The question of where Fountain Hills might find new revenue streams is a big one and, based on the recent budget update provided to the Town Council, a very important one in the coming years.

As Finance Director Craig Rudolphy pointed out to the Council during its April 18 meeting, the money coming in does not match the money going out for the upcoming budget, and that gap is only expected to widen over the course of the next decade.

The tricky part (and good news for the current year) is that making these types of budget predictions isn’t exactly a perfect science. For instance, it has previously been estimated that the current year’s budget would see a $5.5 million shortfall in need of being addressed. Most recent estimates put that figure closer to $3.7 million. That’s still a pretty penny to come up with, but at least the burden is nearly $2 million less than expected.

To be clear, we are not suggesting that the $8.5 million shortfall expected in 2026/2027 might turn out to be quite a bit smaller, so why worry too much about it? That kind of thinking is exactly how those predictions tend to move in the opposite direction, becoming greater problems than anticipated.

Instead, we’re of the mind that the Town is taking the correct measures and investigating creative ways to address this problem head-on. Along with these latest figures, Rudolphy briefly touched on several potential corrective measures that have been tossed around in the past. From a property tax to an increased sales tax, public safety fee and beyond, we hope that every option is investigated carefully in order to determine what is best for Fountain Hills’ future. Maybe there’s one big, perfect answer or, more likely, perhaps several smaller measures could be taken that, combined, will help provide the revenue necessary to keep the checkbook balanced.

Along the way, some important questions will need to be answered. Which options are most feasible? Which could we implement most quickly? What might these options cost the average resident? What options are out there that have not yet been considered? What should we be willing to give up if it means securing the future of our town?

As stated above, it’s a big conversation, and one we’ll be interested to see unfold.

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