The city's budget analysts predict a $33 million deficit in the General Fund for FY 2026, escalating to $79.9 million by FY 2030. Key issues include a 3.5% cap on property tax increases without public approval, likely necessitating a tax rate election (TRE). Concurrently, revenue growth from sales taxes is slowing, exacerbating the situation. Despite the bleak financial outlook, the Budget Office is set to propose a 3.5% wage increase for city employees and additional benefits, including retirement fund contributions, as negotiations with firefighters are on the horizon.
City budget analysts forecast a $33 million shortfall in the General Fund for FY 2026, rising to $79.9 million by FY 2030 due to various revenue challenges.
The 3.5% cap on yearly property tax increases without voter approval is identified as a major factor in the projected budget deficit.
Despite forecasted revenue issues, the Budget Office plans to propose a 3.5% wage increase for city employees and enhancements to health insurance contributions.
The city council members have expressed the urgent need for a TRE (tax rate election) to address ongoing revenue shortfalls.
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