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Item 25 - Public Hearing - Fiscal Year 2025-26 City Budget
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Item 25 - Public Hearing - Fiscal Year 2025-26 City Budget
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6/3/2026 11:49:31 AM
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Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
25
Date
6/3/2025
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Source Overview <br />General Fund revenue may be used for any purpose and includes voter-approved taxes, cost recovery <br />fees, and fines. The Budget Overview and Highlights Section includes detailed information for Sales Tax, <br />Property Tax, Utility Users’ Tax, Business License Tax, Cannabis Tax, Franchise Fee revenue, and Hotel <br />Visitors’ Tax, which represents approximately 78% of General Fund revenue. Sales and Property Taxes <br />continue to be the primary revenue sources for the General Fund, accounting for 58% of General Fund <br />revenue. <br />Revenue Overview <br />Estimated General Fund revenue for FY25-26 is $413.79 million, representing an increase of 1.8% <br />compared to FY24-25. Overall, General Fund revenue growth is expected to remain modest. Declines in <br />Sales Tax, Cannabis Tax, and Jail Revenue are being offset by gains in Property Tax, Utility Users' Tax, <br />indirect cost recovery, and intergovernmental and interdepartmental revenues. Sales Tax continues to be <br />negatively impacted by persistent inflation, while Jail Revenue is facing long-term challenges, including <br />staffing shortages and deferred maintenance, which limit the jail’s ability to operate at full capacity. <br />General Fund revenues are projected to be $10.44 million less than adopted General Fund expenditures, <br />primarily due to the planned use of accumulated fund balance for one-time capital improvement <br />projects. Excluding these one-time expenditures, the General Fund budget is structurally balanced, with <br />recurring revenues exceeding recurring expenditures by $1,320. <br />*Other GF Revenue: Fines, Intergovernmental, Investment Earnings, & Miscellaneous Income <br />7
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