Council weighs scenarios for FY26–27 budget, property‑tax impact schedule and a Thursday budget work session

City budget staff gave an extended briefing on unresolved items in the FY26–27 budget and on the statutory requirement to publish a property‑tax impact schedule that details what any proposed property‑tax increase would pay for. Staff explained the procedural implications of shifting items between the property‑tax column and the general fund and walked councilmembers through hypothetical scenarios showing how a $1 million or larger swing in new‑growth revenue would affect the adopted package.

The briefing included staff’s current estimate of new‑growth revenue: "the mayor's current budget is about 2,500,000 for new growth, and we're seeing about 800,000," a staff presenter said, noting the state will certify the final new‑growth number by June 12 (staff said they would update council when the number is final). Staff warned that if new‑growth revenue falls short of the mayor’s assumption, council members would need to decide which items to cut or whether to use fund balance; staff also outlined options to increase, decrease or shift property‑tax‑funded items.

Council members discussed whether Thursday’s proposed short meeting should focus on cuts if new growth is lower than expected or on priorities if more revenue materializes. Several members urged preparation of $1 million and $2 million cut scenarios, while others preferred starting with spending priorities to guide later cuts. Staff agreed to publish scenario materials and to brief the council over the weekend to aid the Tuesday adoption discussion.