City manager previews FY 2026-27 budget and flags 2028 sales-tax sunset; council asks for non-regressive revenue options

City Manager provided an overview of the fiscal-year 2026-27 budget and warned the council of a timing challenge related to a sales-tax measure scheduled to expire in 2028.

"The fiscal year 26, 27 budget must be adopted by 06/30/2026," the city manager said, and described the budget year covering July 1, 2026 through June 30, 2027. He said the city's revenues are sensitive to sales- and property-tax fluctuations, noted an aggressive capital-improvement program and ongoing negotiations on a multiyear memorandum of understanding that may raise costs.

Council members pressed for options to replace or supplement expiring revenue if the 0.75% sales-tax measure lapses in 2028. One council member urged exploring non-regressive measures such as a vacancy tax or a tiered property-transfer fee targeted at large owners and asked staff and legal counsel to review feasibility and draft language. The council asked for impact estimates, examples of revenue amounts, timelines and suggested the city consider coordinating with county measures that could affect voter perception.

A motion to receive and file the fiscal-year 2026-27 budget overview passed by voice vote; no formal budget adoption occurred at the meeting. Staff said it will return with detailed analyses, draft language and fiscal impacts to inform any potential ballot measure planning.

Next steps: staff to prepare impact analyses and draft language for council review ahead of decisions about a potential ballot measure or alternative revenue strategies.