City revenues spiked over the past year, caused by unusual circumstances related to the pandemic. Stimulus money was pumped into the economy, and the rising cost of goods resulted in higher sales tax collections. Pent-up demand and desire among the public resulted in higher revenue related to travel, entertainment and dining out.
However, this budget proposal accounts for the pandemic’s continuing ripple effect on consumer spending, health care costs, financial markets, availability and cost of construction materials and fuel. In addition, positive revenue impacts were lessened to a degree because Scottsdale’s population, per the 2020 decennial census, decreased from its original estimate resulting in a reduction in population-based state shared revenues.
The FY 2022/23 budget recognizes the impact of these competing factors. General Fund revenues are expected to increase in FY 2022/23. However, city budget analysts are forecasting the additional stimulus funding to work its way through the economy and are projecting a decrease in revenues in FY 2023/24 with a return to a normal trend line through the five-year forecast.