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Staff lays out 2027 budget risks and options — levy changes, taxes and asset sales among ideas
Summary
Staff previewed revenue and expense strategies for 2027: sale of under‑utilized assets, modest levy increases, a proposed structure to replace the liquor tax with a 1% food & beverage tax and 2% package liquor tax (net ~ $1M), modest increases to permit and transfer tax parameters, and enterprise fund adjustments. Committee asked staff for detailed fiscal estimates and comparative peer data.
Staff presented a non‑exhaustive list of revenue and expense ideas to help close a projected 2027 structural budget gap if one‑time permit revenues do not recur. On the revenue side staff highlighted two major levers: the sale of under‑utilized city assets (parking garages, lots, buildings) to reduce borrowing needs and an increase to the property tax levy.
Staff proposed a specific option to replace the city's 6% liquor tax with a structure that would include a 1% food & beverage tax and a 2% package liquor tax, estimating a net revenue increase of about $1,000,000 under that structure. Other ideas included modest increases to permit fees, doubling the natural gas tax from 0.025¢/therm to 0.05¢/therm, streaming tax adjustments and changes to real estate transfer tax exemptions that could raise smaller incremental revenues.
Committee members emphasized that any tax structure change must be compared to peers for competitiveness and that selling assets should be prioritized for capital offsets (e.g., using sale proceeds to lower bond requirements for a particular facility) rather than to cover recurring operating costs. Staff agreed to produce detailed fiscal estimates and peer comparables for the committee’s September follow‑up meeting.
