Tulare staff warn of budget shortfall and weigh November 2026 sales-tax measure to protect services

City Manager Mark Mandell and finance staff told residents at a virtual budget briefing that the City of Tulare faces a structural deficit as sales-tax receipts fall while costs rise, and that staff are evaluating a local sales-tax measure for the November 2026 ballot to shore up funding for public safety, homelessness response, street maintenance and other city services.

"This measure is about protecting Tulare's quality of life," Mandell said, saying new revenue would "provide the revenue needed to keep our city safe." Budget Finance Manager Jacob Dulsid presented the revenue and spending picture, saying Tulare's general fund receives just over $73 million in revenue and that sales tax accounts for roughly 31% of that total.

Dulsid said fiscal-year-2026 sales-tax revenue is projected at $22.3 million, a 3.5% decrease from $23.1 million in fiscal 2025 (unaudited actuals). He attributed the decline to multiple factors including the growth of online sales and unresolved allocation rules following the Wayfair decision; staff also noted a local distribution-center arrangement now in litigation that could redistribute collections away from the city and county pool.

Public safety is the single largest expenditure, staff said, accounting for about 55% of the general fund (roughly $38.6 million planned this year), with $26.5 million for the police department and $12.1 million for the fire department. Dulsid and Assistant City Manager Thomas Gaffrey emphasized that current spending priorities and reserves constrain flexibility: the city follows a policy requiring 16% to 32% of the general fund be kept in reserves, and Mandell said Tulare currently holds 25% in reserves.

Staff outlined capital plans as part of the broader affordability discussion. The five-year capital improvement program is presented as a flexible planning guide with about $255.9 million of planned investments through 2030, including major water and wastewater projects and an approximately $17.7 million forecast for transportation and road projects from 2026to 2030. Staff also cited a local street-reconstruction backlog and said full replacement typically costs about $1.1 million per mile in the city's current estimates.

During a live Q&A, staff explained deferred maintenance as postponed routine upkeep that accelerates deterioration and raises future replacement costs, using roads as an example and noting that ADA upgrades and right-of-way work can substantially increase project costs. Residents asked how sales tax funds are used; staff replied that sales-tax revenue supports public safety, street maintenance, parks and community programs.

On funding transparency, Mandell said the city consistently receives independent audits and that any new funds would be managed with local oversight. Staff pledged to research a resident question about how BEST-program grants previously covering parks and youth-club staff had affected prior budget allocations and to follow up by email.

Staff encouraged public participation: the first budget meeting is scheduled tomorrow, multiple public hearings are planned in the spring, an in-person session is set for Thursday from 6 p.m. to 7 p.m. in council chambers, and materials are posted at the city's budget webpage.

The city did not take any formal votes at the briefing; staff said the next steps are continued outreach, formal public hearings this spring and a decision later this year about placing a measure on the November 2026 ballot.