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City projects multi‑year budget shortfalls; business license reform would cover a fraction
Summary
Finance staff presented a five‑year baseline forecast showing revenues growing slower than expenditures and projected cumulative shortfalls; the proposed business license reform would address only a portion of the identified funding gap.
City finance staff presented a five‑year baseline financial forecast showing revenues growing about 3% annually while expenditures rise approximately 4% annually, producing recurring shortfalls in the coming years.
Budget and Purchasing Manager Mark Ku said the city projects FY27‑28 revenue at about $206.3 million and expenditures at about $208.3 million, a shortfall of roughly $1.9 million. Projections for later years show larger shortfalls (approximately $4.2 million in FY28‑29 and about $4.9 million in subsequent years). Ku emphasized these baseline projections exclude the additional investments identified in the facilities, parks and IT assessments presented during the meeting.
Council members noted that the business license reform, while helpful, would not close the full funding gap: staff estimated the proposed reform at about $5.6 million annually while combined annual infrastructure funding needs presented later were about $11.5 million. Several council members asked staff to identify where additional efficiencies or reductions might be possible before relying solely on a permanent revenue measure.
