Universal City staff proposes stable tax rate while presenting FY2027 budget

City staff presented the proposed FY2027 budget at the Aug. 4 Universal City Council meeting and recommended the property tax rate remain at 0.53000 while adjusting the allocation between maintenance and operations and debt service.

"The proposed budget includes the cost of living adjustment for existing staff; we're not requesting any additional staff for this fiscal year," the presenter said, adding the proposed allocation would set maintenance and operations at 0.425000 and debt service at 0.105000. Staff said projected general fund revenue is $22,764,455 and that tax revenues represent roughly 73% of that total.

The presenter told the council the city can fund two replacement fire trucks without issuing new debt and that the remaining use of fund balance would reduce the target reserve from 12 months to about 11.5 months at most; staff said final amounts will be known when year-end closes in September 2027. "If we did [use fund balance], then we'll come to you with a plan in order to bring us back to the 12 months," the presenter said.

Council members asked clarifying questions about the timing of public hearings, the required record vote on a tax rate, and the mechanics of the "no-new-revenue" and voter-approval tax calculations. Staff said public hearings on the budget and a record tax-rate vote will follow the presentation and that state law requires adopting a budget before setting a tax rate.

No final tax-rate adoption occurred at the meeting; staff outlined next steps and scheduled additional hearings and votes required by state law.