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Finance outlines 2027 budget timetable and suggests options to limit property‑tax capture
Summary
City finance staff presented a mid‑budget update showing a staff baseline that assumes capturing roughly 7% assessed‑valuation growth for 2027 (about $10–11M additional property‑tax revenue), noted risks to interest‑income projections and 2028 pressures, and offered to provide council options that would instead capture nearer 5% growth to limit tax increases for residents.
City finance and budget staff reviewed the 2027 budget calendar, revenue assumptions and a preliminary menu of departmental requests.
Mark Manning said interest earnings—an elevated revenue source in recent years—are expected to decline over the medium term and that property‑tax growth is the principal driver of near‑term revenue gains. Staff modeled a 7% assessed‑valuation capture scenario for 2027, which translates to about $10–11 million of additional property‑tax revenue at current assumptions. Manning explained the arithmetic (each 1% of assessed valuation is roughly $1.4 million) and said the city is likely balanced through 2027 under current assumptions but faces a higher risk in 2028 if interest income falls and AV growth moderates.
Budget director Elizabeth Golcher summarized department submissions received in the new budget software: roughly 175 FTE requests and an aggregated general‑fund impact of about $14 million in initial requests. Staff said many requests tie to strategic‑plan outcomes (street maintenance, homelessness services, IT/data governance, parks staffing and library master‑plan positions) and flagged operating impacts for recently completed or planned capital projects (new police and fire facilities, which carry ongoing maintenance and staffing costs).
Council members asked staff for alternate packages and trade‑offs: the mayor asked for a variant that would capture closer to 5% of AV growth (representing inflation plus new construction) to reduce tax‑pressure on residents; Mark Manning said staff could provide options rather than a separate budget and recommended showing trade‑offs and suggested mitigations (using stabilization reserves, adjusting mill‑levy capture, or deferring requests). Manning noted the manager will present a recommended budget on July 14, at which time the council must set maximum levies and publish the revenue‑neutral notice; staff urged timely feedback to fit statutory timelines and county clerk filing deadlines (June 15 for final AV data and late‑June workshop timing recommended for council direction).
