Glendale budget team outlines five‑year forecast; council agrees to keep levies flat
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Summary
Budget staff presented a five‑year forecast showing sales tax as the largest general‑fund revenue source, warned that construction sales tax is expected to decline, and recommended three levy options. Council signaled consensus to keep both primary and secondary property‑tax levies flat for fiscal 2027.
At a Jan. 27 Glendale City Council workshop, budget staff presented the city’s five‑year financial forecast and sought council direction on property‑tax options for fiscal year 2027.
Staff said city sales tax makes up the largest share of general fund revenue (about 52%) and highlighted that spikes in construction sales tax over recent years boosted revenue but are not expected to continue at the same pace. "We do anticipate that that trend will continue to slow down," Jonathan Hill said, noting construction sales tax is effectively a one‑time source tied to new development.
The presentation offered three options for the primary property‑tax levy: keep the levy flat, increase the levy by the statutory 2%, or retain the current primary rate. Staff estimated a 2% levy increase would generate about $145,000. After discussion, council members indicated consensus to keep the primary levy flat for FY27 (continuing a long‑running flat‑levy policy).
Staff repeated the same three options for the secondary levy (the voter‑approved levy used for debt service) and council similarly indicated consensus to keep the secondary levy flat.
Other forecast details included an assumed general‑fund contingency of $5,000,000 for FY26 and FY27 and expenditure assumptions that include a roughly 5% average increase across operating categories and a $7.2 million personnel cost addition in FY27. Staff also estimated residential rental tax declines would total about $13 million across funds for the year (about $7.5 million in the general fund). Councilors asked staff to provide additional charts breaking down state shared revenue and to provide the 10‑year transportation plan referenced during the presentation.
Council requested follow‑up materials showing the percentage impacts and longer forecasting horizons; staff said the CIP binder and project‑level details will be available for the March 3 workshop.
Next steps: staff to deliver additional charts on state shared revenue impacts, provide the 10‑year transportation plan on request, and finalize proposed FY27 operating and capital budgets for the March/April review schedule.