You Are Going To Need More Revenue in 2025
William “Bill” Cherry
Director, Public Partnerships
Finding new sources of revenue, or expanding and maximizing your current revenue streams, will be of paramount importance as we begin to think about 2025. Public entities are starting to see the end of the road of their ARPA funds (and the additional discretionary interest income that they derived from that cash), which means that municipal budgets will begin to feel the pinch. Compounding that is the reality that interest rates are already beginning to recede based upon the market’s general assumption that the Fed will soon be lowering rates. Without a proactive revenue-protection safety net in place, these factors will reduce your organization’s interest earnings that are so critical to help offset property taxes.
Since inflation has increased the costs of goods and services all across the board, we must conclude that counties, cities, and school districts will continue to need more money to operate, yet their budgets will be squeezed by reduced revenues. The solution? Taking proactive steps NOW to find ways to expand and increase interest earnings on every single dollar that passes through municipal coffers.
What if there were a way to generate brand new, previously untapped interest earnings while continuing to use your current banks? And what if that new revenue was so significant that it could offset anywhere from 5% to as much as 25% of your property tax levy? Finally, what if the cost of the professional services that helped you achieve those amazing results was only a small fraction of the additional income you would derive? You wouldn’t really classify those costs as an “expense.” Rather, you see them as a “revenue supercharger.” And, though the net additional income isn’t exactly free money, it’s pretty darn close.
We founded three+one 10 years ago to help public entities maximize the interest earnings on every dollar of cash that flows through their coffers. We are proud to say that the counties, cities, school districts, and community colleges that we work with have generated an impressive $2.5 billion in new non-tax revenues. We’d love to help your public entity too.
Prior to joining three+one®, the author served for 38 years in local government including 24 years as a County Treasurer and CFO responsible for managing and investing public funds. He can be reached in person by phone at 585-484-0311, ext. 709 or by email at wec@threeplusone.us
