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City staff warns sales tax and assessed value declines will squeeze FY2027 budget
Summary
Staff told the council sales tax receipts are down roughly 23% year-over-year and the city’s preliminary taxable assessed value fell to about $226.5 million from $274 million, narrowing revenue options and increasing reliance on transfers from enterprise funds.
City staff presented a first-pass draft of the fiscal year 2026–2027 budget and warned council members that the revenue picture has deteriorated.
Mary Jones told the council that sales tax receipts are down about 23% from the previous calendar year and around 41% on the October–September fiscal-year measure used for planning. She cited a preliminary taxable assessed value of approximately $226,500,000 compared with last year’s $274,000,000, noting the $50,000,000 drop would reduce property-tax-based revenue if final numbers hold.
Staff said the decline increases pressure to rely on enterprise transfers and to limit new capital projects while the city works to shore up the general fund. Jones said the final assessed values are due from the county by July 25 and that more precise planning will follow once those figures arrive.
Councilors and staff discussed economic drivers, including reduced drilling activity, and emphasized efforts to attract new businesses to broaden the tax base. No budget decisions were finalized at the special meeting; staff will return with updated numbers when county assessments are available.
