Explore new sources of revenue

This may be a good time to start identifying new sources of revenue that can help the city make up for lost revenue and strengthen its financial base. There are several avenues to create new revenue for a city, but the benefits of the additional revenue must be weighed against the negative outcomes of adding a burden to the city's economy and its residents.

ASSESSMENT

Some questions to guide your thinking

  • What potential additional sources of revenue are available?
  • What is the revenue generation capacity of each one?
  • What will be the impacts on citizens and the economy of each one?
  • What is the approximate implementation time?
Example
Increasing a tax rate with voters’ backing in Sacramento

Increasing a tax rate with voters’ backing in Sacramento

Sacramento, CA

Reading

Proposing new taxes strategically

Government Finance Officers Association (GFOA) 30 minutes

What can local governments do to ensure that proposed new taxes succeed politically? This guide suggests engaging residents to define where new revenue needs exist, linking taxes to services that residents value, and building a network of supporters.

  • Every idea contains a checklist with actionable insights to put into practice.
  • Case studies from local governments in Florida, Oklahoma, and Missouri (among other states) are included.

Example

Increasing a tax rate with voters’ backing in Sacramento

Sacramento, CA

Read more

Reading

Proposing new taxes strategically

What can local governments do to ensure that proposed new taxes succeed politically?…

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