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Walnut Creek council adopts short-term budget rebalancing to cover $2.3 million sales-tax shortfall
Summary
City staff told the council a California Department of Tax and Fee Administration reporting change reduced auto sales tax revenue, producing an estimated $2.3 million FY27 general fund deficit; the council approved staff's recommendation to maintain a 10–11% vacancy rate short-term while pursuing appeals and a fee study.
City staff told the Walnut Creek City Council on March 3 that a reporting change at the California Department of Tax and Fee Administration (CDTFA) reduced sales-tax revenue assigned to Walnut Creek in the autos and transportation category, producing a projected $2.3 million shortfall to the FY27 general fund.
Administrative Services Director Kirsten Locast explained the city adopted budgets for FY26 and FY27 that relied on a mix of ongoing reductions and one-time savings. After the CDTFA…
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