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Council urged to plan now as state changes will cut ceded and municipal income-tax revenue
Summary
Members discussed a state-driven phaseout of ceded funds and certain income-tax streams that will reduce local revenue by 2028–29; staff recommended a countywide planning exercise and the council agreed to prepare scenarios for a possible municipal income tax.
Presenter (S1) warned that property-tax reform and other state actions will reduce certain ceded funds and municipal income-tax revenue streams over the next two to three years and said the council should start planning now: "Income taxes go away completely in 2029 ... So that's a lot of bombshells."
Committee member (S2) and others urged outreach and a collaborative county-level response: Presenter described a county strategy task force other counties used to submit plans to the state by an October deadline. Members discussed whether the city should consider establishing a municipal income tax to replace lost ceded funds and agreed staff should present revenue scenarios and possible dedicated allocations if a local tax is proposed.
