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What is a Structural Deficit? <br />What is structural deficit? <br />•A structural deficit is a persistent imbalance where a government's spending consistently <br />outpaces its revenue. <br />What are some causes that attribute to a structural deficit? <br />•Insufficient revenue or fluctuating revenue <br />•Unpredictable rate changes to pensions <br />•Growing infrastructure needs <br />•Economic instability/uncertainties <br />•Excessive spending <br />Why is a structural deficit is bad? <br />•Persistent structural deficits are unsustainable. <br />•Eventually, all available funds are expended, which can put the City in a position of filing <br />for bankruptcy. <br />Pg 8 Meeting Date: June 2, 2025