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Council reviews truth-in-taxation steps as staff outlines options to close FY2026 shortfall
Summary
City Manager Goodwin walked the council through truth-in-taxation notice requirements and the city's property tax history; staff said the budget faces a roughly $90,000–$100,000 shortfall and presented options including a modest operating levy increase, reserve transfers, or fee adjustments.
City Manager Goodwin provided a detailed primer on the truth-in-taxation process and the city's property-tax history, asking the council to consider whether to schedule a public hearing and what level of additional revenue would be needed to balance the FY2026 budget.
Goodwin summarized statutory steps under SB 238 (as discussed at the meeting): notify the county auditor of intent before June 1, publish electronic and physical notices at least 14 days before the hearing, provide a public hearing before Sept. 1, and allow for virtual oral testimony. He emphasized the requirement to state the dollar amount and purpose of the proposed tax increase in the public notice.
Staff presented long-term comparisons showing limited growth in Cedar Hills’ general‑operating property‑tax receipts since 2007 and noted that the golf course debt levy has been shifted to soften direct resident impacts. Council and staff explored options to generate roughly $75,000–$150,000 in new revenue for FY2026: (a) a modest operating levy increase presented as an average household impact (staff repeatedly converted dollar amounts to monthly figures for messaging), (b) targeted reserve transfers this year to soften the immediate impact and spread increases into next year, or (c) fee increases and service reprioritization.
Councilors emphasized communication and transparency: staff must explain what the money will pay for (public safety, parks/trails, deferred maintenance) and the share of the overall tax bill that the city portion represents. Several councilors urged a July 1 implementation for program or consortium changes if the council adopts them, and asked staff to return with an explicit dollar figure and the average household impact for any recommended increase.
Next steps: staff will prepare a concrete recommended levy change (dollar amount and average household impact), a public-notice schedule, and outreach materials explaining the use of funds and available relief programs for seniors and veterans.
