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Tracy finance committee warned of near-term shortfall after major fulfillment center shifts operations
Summary
City finance staff told the Tracy Finance Committee that a major fulfillment center’s planned conversion to a distribution facility could reduce sales-tax receipts by about $13 million and contribute to an estimated $4.6 million general-fund shortfall in fiscal year 2026–27; staff proposed using reserves and other measures to balance the budget.
The Tracy Finance Committee on March 10 heard a five-year forecast from Sarah Castro, the city’s finance director, that identified a potential near-term general-fund shortfall tied largely to one large fulfillment center converting to a distribution warehouse.
“The change is estimated to see a reduction in sales tax of nearly $13,000,000,” Castro told the committee, saying the company will go offline for retrofitting and that it is not yet known whether fulfillment activity will remain in Tracy. Staff said the conversion could produce a net reduction in general-fund revenue of…
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