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Council sets FY27 revenue assumptions: 3% sales‑tax, 1% lodging‑tax and 0.5 mills property‑tax for budget drafting
Summary
At the March 16 workshop council adopted staff recommended FY27 revenue assumptions for budget development: 3% sales‑tax growth, 1% lodging‑tax growth and a 0.5‑mill property‑tax starting point; both motions passed unanimously.
The Town Council voted unanimously March 16 to start drafting the FY2027 budget using a 3% sales‑tax growth assumption, 1% lodging‑tax growth and a 0.5‑mill property‑tax assessment.
Finance staff and the town manager framed the assumptions as the starting point for budget development and noted the town’s heavy reliance on sales tax—about 74% of general‑fund revenue in the current model. "About 74% of the total revenue for the general fund comes from sales tax," the finance director said, urging quarterly check‑ins as projections are refined.
Staff said retail and traveler‑related categories have driven sales‑tax growth in recent years and that commercial building permit activity remains the most volatile revenue source. The manager suggested the council could trade some growth assumption risk by modestly adjusting property‑tax assumptions but noted such changes have political implications.
Councilor (S6) moved to adopt the 3% and 1% projections for sales and lodging tax respectively; the motion passed unanimously. The council then approved setting the property‑tax assumption at 0.5 mills for the draft budget; that motion also passed unanimously.
Staff will continue to refine revenue forecasts and present options during the budget calendar; final revenue assumptions and appropriation decisions remain subject to future council action.
