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Corona’s FY2027 budget: modest revenue growth, debt service for downtown built in
Summary
City staff presented a FY2027 operating and capital budget that projects $243.8M in general‑fund revenues, 3% COLAs already adopted, continued reliance on sales and property taxes, pavement/CIP spending, and an assumed first-year downtown debt service of about $4.3M.
City staff presented the proposed FY2027 operating and capital budget on April 23, laying out revenue forecasts and cost drivers ahead of the June adoption process.
The numbers: Finance Director Bruce Folultz said the general fund revenue estimate for FY2027 is about $243.8 million, a modest net increase compared with current projections after accounting for an $8 million one‑time property sale in the current year. The two largest revenue sources are sales tax (about 41% of general fund revenue including Measure X) and property tax (about 29%). Staff forecast a small sales‑tax dip tied to county pool allocation changes but expect overall revenue growth near typical municipal ranges (4% over current year excluding sale anomalies).
Key cost factors: the budget includes capital projects (~$59M in CIP), a 3% cost‑of‑living adjustment already adopted by the council, and assumed debt service for pending downtown bonds (staff used a working estimate of ~$4.3M for the first year of the proposed downtown issuance). Pension and benefit obligations remain a large portion of ongoing expenditures; staff said the city’s pension‑related metrics have improved since the pension obligation bond but continue to be monitored.
CIP and services: the FY27 CIP emphasizes streets and utilities as large line items, along with parks and downtown projects. Staff highlighted a 167‑mile pavement program and a $5M sidewalk repair program (about 300,000 sq ft targeted for repair by June 30, 2027). Council and staff also discussed service optimization initiatives, revenue diversification (sponsorships, leasing), and digital-government projects.
Next steps: council will review comments and consider the budget for adoption in June; staff will refine revenue and debt-service assumptions and return with detailed program-level figures for CIP and operating changes.
