Council adopts tentative FY2027 budget after detailed amendment review and debate over long-term taxes

The Sunset City Council adopted a tentative operating budget for fiscal year 2027 on May 5 after receiving a detailed presentation of FY2026 budget amendments and discussing longer-term revenue strategy.

City finance staff presented line-by-line adjustments, including transfers to the youth council, changes in police wages and overtime, equipment and maintenance adjustments for streets and parks, and a $650,000 transfer from public-works capital projects to shore up general-fund balances. Staff discussed account coding, timing of invoices and grant receipts, and clarified that some figures were still being finalized.

Mayor (title only in transcript) emphasized the need to look ahead to avoid a sudden, large tax increase and suggested periodic truth-in-taxation outreach or small, incremental adjustments in the future. "We're gonna be fine through 2027," the mayor said, but added that the council should consider regular reviews to avoid a large, sudden tax increase later. That sentiment framed much of the discussion about sustainability.

Council members raised concerns that property taxes alone would not cover structural deficits and that repeated use of fund balances and transfers is not sustainable long term. One council member noted property tax revenue comprises a modest share of the city's total revenue and that even large percentage increases would yield limited additional dollars for the general fund.

Staff offered numerical summaries during the presentation and corrected some totals in real time; council members asked for follow-up materials and confirmation of specific account transfers and grant amounts. The council set a timeline for final budget adoption and public notices; staff will publish the corrected budget documents and hearing materials.

What’s next: Finance staff will publish revised budget figures and the council will hold the scheduled public hearing for final adoption.