So the next thing that Mayor did was study expenses. He found that over the past 30 years, expenses had increased by approximately 12.5%. Transportation expenses were up 23% (though transportation revenue was up much more, by 78%, and transportation was closer to profitability than 30 years ago), public safety expenses were up 9%, healthcare/education costs were up 12%, utility costs were up 7%, ordinance costs were down 26%, beautification costs were up 89%, and government costs were up 34%. Nevertheless, healthcare/education and utilites still made up over 2/3 of expenses.
Income was up drastically from 30 years ago, but that wasn't a fair comparison, since 30 years ago was when the city was losing over $15,000 per month due to plummeting revenue after the water crisis. Over the past 20 years, despite some rises and falls, income was overall near-constant, resulting in the current meager profit of 4000 simoleons per month.
One thing the Mayor did notice is that water efficiency appeared to be falling significantly:
The Mayor suspected that aging infrastucture was to blame, and sure enough, found the original Large Water Pump that he had added decades ago still standing, receiving funding, and totally useless.
So the first restructuring project was to be decommissioning inefficient water pumps in favor of new ones. Water pumps were costing $19,000 per month of the $99,000 budget, and that was a lot of money! Within a couple months, both the useless pump and one other had been decommissioned, and expenses fell by over $6000 with no water shortage.
Another problem was that, while Fort Consternation had been prosperous earlier, the city was becoming less and less wealthy of late.
This, of course, reduced the tax base, and was likely the reason that revenues had stagnated. This was despite education, health, and mayoral approval all increasing over the same time span. The Mayor wasn't able to identify the exact cause of this issue.
One of the problems the Mayor noticed was that no one was actually flying out of the new airport. So, the Mayor decided to try to encourage people to do so, and built a bridge to the airport. Destruction of the casino was necessary for the initial construction, and the mayor decided that rather than rebuild it, an industrial zone would be added near the airport.
The next question was that of taxes. Fort Consternation had largely followed a policy of low taxes for the wealthy, with the idea that their higher incomes would make up for the lower tax rate.
While this seemed to have worked for awhile, lately the average income was not great. Two lines of thought were proposed:
- Reverse policies. Raise taxes for the wealthy, and lower them for the poor/middle class. The idea being, this will help the poor/middle class gradually increase their wealth, and help the city in the long term.
- Double down, or, the snob strategy. Raise taxes on the poor, and use the revenue to pay them to move to other cities. The newly-empty land will be filled by middle-class or upper-class citizens moving in. Do similarly with businesses.
Both had their risks of economic implosion. The former might cause the wealthy to leave, and decrease wealth. The latter might fail spectacularly if no one moved in. After having statisticians present projections for both sides, it was decided that a policy reversal was the better option. Taxes were set to 9% for the wealthy (both residential and commercial, 8% for the middle class, and 7% for the least wealthy. Manufacturing also got a slight tax cut.
Of course, it didn't hurt that the tax changes would result in an extra $10,000 per month in revenue, largely from raising the very low commercial tax rates. Even if they didn't prove to be a resounding success, a few hundred thousand extra dollars by the end of the term would be nice.
In September of 2110, the airport had reached capacity, and was expanded. The bridge had worked!
In December, the airport needed expanded again! Quintillus was beginning to doubt that a metropolitan airport would really be big enough for Fort Consternation.
As time progressed, the Mayor's focus began to shift to optimizing certain areas of the city. The main target was reducing the amount of buildings abandoned due to commute time. Fort Consternation had a decent public transport system, but some pockets of the city were outside of its reach, and traffic could be bad in those areas. The Mayor decided to focus on improving subway transportation in a few areas, identified with red and blue in this map, which also shows some neighborhoods and landmarks in orange:
As another complicating factor, there were large swathes of areas that were highly residential, and even if there was good public transport there, the public transport could be quite congested. So, the city began buying up properties abandoned due to commute time, and converting them into primarily commercial areas. These were usually quickly developed, proving there was a market for shops in the middle of seas of apartments and high-rises.
After targeting a few areas in this fashion, and seeing them revitalized, the Mayor began increasing densities in a few areas as well - both residential and commercial. A few undeveloped areas were also zoned, usually for job creation.
With the new cash, the Mayor also realized some new ordinances could be afforded. Seeing that pollution was harming the development of certain areas, such as the Swagful Farms neighborhood, the Mayor re-enacted the Clean Air Act, and introduced vehicle emission testing. This reduced pollution by 20 - 25%, which was very significant in some areas, including Swagful Farms.
All four of the major changes - taxes, targeted job creation, better transportation, and cleaner air - were helping. Transportation was perhaps the most evident, with pedestrian traffic in particular increasing. Those close-to-home businesses were paying off.
By mid-2112, revenues were up to almost 120,000 per month, and despite the cost of the ordinances and increased education funding - some schools, including the University of CFC, were over capacity - the city's financial situation was great.
And in September 2112, the city's population passed 500,000! It kept growing, too!
It was true that most of the new residents were low-wealth. But there had been a considerable growth in the middle class, too, and even an increase in wealthy residents, despite the tax hike. The more vibrant city was making up for the higher taxes.