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Midyear report: Rancho Cordova projects balanced budget as property-tax revenue jumps
Summary
Chief Financial Officer Kim Georgio told the council the fiscal 2025–26 midyear review shows the general fund performing in line with the adopted budget, with property-tax assessed value up about 9–9.5% (roughly half due to transfers of ownership) even as sales tax slowed and single-family production permits fell about 50%.
Kim Drea Cara Georgio, the city’s chief financial officer, gave the midyear financial report for fiscal year 2025–26 and said overall revenues and expenditures are tracking with the adopted two-year budget even as some growth indicators slow.
Georgio highlighted a notable property-tax increase: Rancho Cordova’s assessed value rose about 9.5%—a rise she said is materially higher than nearby jurisdictions. She attributed roughly 48% of the growth in assessed value to prior-year transfers of ownership and about 14% to new residential construction.
On other revenues, Georgio said sales-tax receipts have flattened relative to the high point in 2023–24 and that the city could see a roughly $3.6 million decline versus that prior high. She said changes in how used-vehicle sales tax is remitted (now routed through the DMV to state distribution) and business relocation or reporting changes can produce timing and allocation issues that sometimes take years to reconcile.
Building-permit activity for production homes fell about 50% in the first six months of the fiscal year, Georgio said, while some commercial valuations (including major cold-storage and distribution projects) have bolstered commercial revenues. Overall, Georgio said she expects the budget to end the year balanced and noted the Community Enhancement and Investment Fund may modestly exceed its budgeted total.
Public questions focused on methodology for used-vehicle sales-tax remittance and owner-to-owner transactions; Georgio said staff would follow up with additional details.
Next steps: Finance staff will continue quarterly monitoring and return to council if material variances require policy decisions or reallocations.
