General Fund Revenue Overview The City’s revenue projections for FY 2026-27 are grounded in historical performance, current economic conditions, and known development activity. Property Tax and Sales Tax together represent approximately 57 percent of total General Fund revenues, making them the primary drivers of the City’s revenue generation and important factors to its long-term fiscal outlook. Property Tax provides a stable and predictable foundation, while Sales Tax offers growth potential tied to consumer activity, business performance, and regional economic conditions. The revenue budget places particular emphasis on these two revenues, while also monitoring economically sensitive sources such as Transient Occupancy Tax and more stable recurring revenues such as Franchise Fees. A significant portion of the Fees, Charges, and Earnings is related to building and planning permit fees derived from new development activities, which are influenced by various market conditions. The non-recurring category includes three funding resources: a transfer of $11 million from the Land Sale Proceeds Fund to support the General Fund’s programs; a use of $3.5 million from the General Fund’s reserves; and proceeds of $2.2 million from the anticipated sale of property at 150 E. First Street. Overall, the City’s FY 2026-27 revenue budget reflects moderate and sustained revenue growth supported by ongoing development, a stable property tax base, gradual normalization of consumer activity, and continued investment in projects that expand the City’s tax base. While the revenue long-term outlook remains stable, the City will continue to monitor inflation, interest rates, consumer behavior, development timing, and broader economic conditions to ensure budget projections remain aligned with actual performance.
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