Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Finance director projects sales-tax revenue near-flat for 2027; staff asked departments to cut 2%
Summary
Finance director Kim Weber told council staff is proposing a conservative 2027 sales-tax budget roughly flat to 2026 (about $40.6M), flagged a year-to-date shortfall and wildfire-related tourism risks, and asked departments for 2% operating cuts as a starting measure.
Kim Weber, the city's finance director, presented the proposed sales-tax projection that will be used in preparing the 2027 budget. Staff proposed starting the 2027 sales-tax budget at $40,600,000 (approximately $300,000 below the current year budget), reflecting a modest 2% increase from projection but effectively flat year over year. Weber warned that sales tax through May was approximately $463,000 below budget and that wildfire coverage and tourism patterns present near-term uncertainty.
Weber outlined the drivers behind the projection, including flat consumer spending since 2021, a variable CPI, and sector breakdowns showing lodging and miscellaneous retail as major contributors. Departments were asked to cut 2% from operating budgets as an initial measure while staff monitors June–August data and re-evaluates projections before finalizing October budget documents.
