San Ramon projects modest general-fund growth for FY2026-27; Measure N and franchise fees tighten revenue outlook

San Ramon finance staff presented the city's first FY2026-27 budget workshop on April 14, laying out revenue assumptions the city will use while preparing expense proposals.

Key numbers presented by Budget Manager Julia Elbo:

- Property tax: Collections for FY2025-26 were running higher than the prior budget and staff assumed an additional +3% for FY2026-27, producing roughly $1.6 million more than the FY25-26 budget baseline.

- Sales tax: The general Bradley-Burns sales-tax base was projected to show solid growth (staff cited roughly +6.4% year-over-year), but the city's Measure N (a destination/transaction-use tax) is expected to come in below its FY25-26 budgeted level; staff estimated the Measure N shortfall at about $1.3 million.

- Franchise fees: Revenue from franchise fees (garbage/utility franchises) is expected to decline because of ongoing renegotiations and changes in how those fees are collected from residents; staff flagged a notable hit in franchise revenues to the FY26-27 outlook.

- Overall projection: Based on current information, staff estimated general-fund revenue growth of roughly $370,000 (about 0.45%) for FY2026-27, well below the city's historical average growth of about 4%.

Doherty Valley CSA: A separate but related issue is the city's Doherty (Dhy) Valley County Service Area. Staff said that assessments and property-based revenue tied to that CSA are insufficient to fully fund the services provided in the development; historically the city has transferred several million dollars from the general fund to support Dhy Valley services, and staff indicated transfers would rise by nearly $1 million in the current projections. Council members asked for a deeper, public-ready explanation of the CSA shortfall.

Council reaction and next steps: Council members noted the city's continued heavy reliance on property tax and urged staff to explore ways to broaden revenue sources. Staff said they would bring an expense-focused workshop at the council's April 28 meeting and planned to update revenue estimates as more data become available. The city also said it is recruiting an analyst with economic expertise to help refine revenue projections and to study business- and retail-attraction strategies.

Why it matters: The revenue assumptions will shape the FY2026-27 budget and influence decisions about services, fee levels and long-term financial stability. Council members signaled concern about one-time or volatile revenue sources and the need for sustainable options that do not overburden residents.