Overview
- City budget staff, in Wednesday’s midyear briefing, reported existing property values down 3.54% with new construction adding 1.41%, a net 2.13% drop and a 1.7% decline in FY 2027 property tax collections.
- City Manager Erik Walsh proposed using the state-allowed 3.5% revenue growth, likely raising the rate, to cut the needed reductions to about $70 million instead of $131 million over 2027 and 2028.
- Most council members voiced reluctance to raise the rate and pressed for cuts, while others including Sukh Kaur and Phyllis Viagran said they would consider an increase.
- Budget strain has already slowed planned police hiring, and with salaries making up about 70% of the general fund for roughly 12,000 workers, deeper cuts could hit services and jobs.
- Next steps include a May 22 goal-setting session, a June 17 trial budget review, certified tax rolls in late July, an August budget proposal, and a September council vote.