Auburn staff urge conservative revenue estimates as council weighs FY27 gap

At the March 9 workshop, finance staff asked the Auburn City Council to treat state revenue-share projections as estimates and to remain conservative in FY27 planning. Finance Director Kelsey Earl explained that state revenue-share forecasts are produced by statewide economists but that municipalities should not assume projected totals will materialize; the city used a projection lower than the state's to avoid over‑reliance on estimated revenue.

Staff described major revenue categories (homestead and personal-property reimbursements, excise taxes) and noted legislative changes to exemptions could shift municipal revenue responsibilities to the state unless reimbursement accompanies any expansion of exemptions. The manager and finance director emphasized the fund-balance contribution practice: the city budgets a fund-balance carryforward in difficult years but reserves remain for one-time uses and emergencies and should not be treated as recurring revenue.

Councilors discussed potential long-term volatility in Rev 2 and other state allocations; staff said Auburn's relatively balanced tax base buffers some of the swings high-growth communities experience but recommended continued monitoring and advocacy at the state level. Staff also announced public budget forums (Mar. 10, 6'8 p.m., community room; Mar. 14, 3'5 p.m., resource center) and set out the schedule for upcoming CIP and department workshops ahead of the charter budget deadline.

No budget was adopted at the workshop; staff will return with further scenario analysis and department-level options to close the gap to the council's target.