Bohemia, NY (PRWEB) October 19, 2013
Financing and real estate expert Alec Sohmer responds to an article published by Reuters on October 10th, which details results of a national survey suggesting most U.S. cities’ revenues will increase for the first time since the recession.
According to the Reuters article titled “U.S. cities bringing in more revenues, building reserves,” a new survey conducted by the National League of Cities found that 72 percent of chief city finance officers believe that their cities are more profitable than they were last year. General fund revenues are anticipated to grow about 0.1 percent. While growth is small, this is the first time city officials showed optimism in relation to budgets and growth since the recession seven years ago.
The article says the increase in revenue could be attributed to the recovery of the real estate market and a rise in sales taxes. “Cities expect the other major source of revenue, sales taxes, to grow 1 percent this year,” the article says.
Alec Sohmer, a financing specialist and real estate expert, says while city budgets will remain strict, they will continue to grow in the coming years. “With rising sales tax and the improving real estate market, cities will be able to build up reserves in case of another economic downturn,” he says. “Reserves are needed to sustain operations in times of economic turmoil. Cities have already utilized most, if not all, of their reserves these past seven years. Hopefully, with the way things are going, cities will be able to safeguard their assets.”
Though the survey suggests most cities are recovering financially, Sohmer says he hopes economic uncertainties from the government shutdown does not reverse the progress made. “The government shutdown has the potential to derail the entire economy if Congress does not make a decision on the debt ceiling,” he says. “It’s important that cities continue to stock reserves if the shutdown sends the economy into a downward spiral.”
Alec Sohmer, a strategic financing leader and co-founder of Plymouth Rock Capital, has 20 years of Board-level experience. He has served in many interim management positions for businesses requiring significant turnaround or restructuring. He is able to increase revenue streams by utilizing a variety of line management techniques. In his two decades of experience, he has dramatically increased revenues of businesses by identifying untapped markets.