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Mayor Spencer Duncan cites survey priorities, warns of $13.5M–$15M deficit and supports 8.5% transient guest tax
Summary
Mayor Spencer Duncan said more than 1,000 residents completed the 2027 budget survey (top priorities: streets/infrastructure, public safety, social services/affordable housing), warned of a looming $13.5M–$15M deficit, and said he supports raising the transient guest tax to 8.5% to fund tourism investment.
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Mayor Spencer Duncan said the city received more than 1,000 responses to its 2027 budget priority survey and described the top three resident priorities as streets and infrastructure, public safety, and social services including affordable housing. "Residents want safe, reliable roads, and they want to see continued investment in the core systems that keep our city moving forward," he said.
Duncan said the survey included open comments that he and staff will review and that the results will guide budget development, but he warned the city faces a significant budget shortfall this year. He said estimates for the looming deficit range from about $13.5 million to $15 million and that officials are considering a range of options, including delaying projects, moving funds across years, holding unfilled positions and finding operational efficiencies.
On revenue measures, Duncan said he supports a proposed increase in the transient guest tax to 8.5 percent and that his name is attached to the proposal. "If we can get it up to 8 and 1/2 % people who visit here will pay it... then the council can have constructive decisions about where specifically it should go," he said, adding that specific spending allocations had not yet been decided.
Duncan said he prefers to avoid service cuts where possible but acknowledged some reductions in service or holding positions may be necessary unless the city pursues revenue increases. He urged councilmembers to be part of the solution, work with staff and participate in budget decisions over the next four months.
Why it matters: The budget survey results give officials a community-based priorities list to inform the 2027 budget. The stated deficit range and the mayor's support for a transient guest tax increase signal the types of trade-offs under consideration and a potential revenue path tied to tourism investment.
What's next: City staff will continue budget analysis, the council will debate proposals and the mayor said he will roll out constituent access opportunities (town halls, online Q&A and 15‑minute appointments) to collect further input as the process unfolds.

