Finance director: taxable values rose $436.9M; city budgets $1M for refund risk

Jay Patel, the city’s finance director, told the City Council on Aug. 4 that certified taxable values for fiscal 2027 rose by “approximately $436,900,000 or 4.3%,” driven largely by commercial new construction.

Patel said staff received the tax roll July 25 and used those certified values to update revenue projections. “Property‑tax revenues increased by $1,500,000 year over year,” he said, but added that the city budgeted $1,000,000 for refunds tied to valuation protests because recent years saw substantial refunds: “In FY24, we issued $750,000 in refunds. FY25, $950,000.” He said staff expect protest‑related refunds to continue and set the $1 million figure to remain conservative.

The increase in taxable value came mainly from commercial investment and a demo‑rebuild residential program that replaced low‑value homes with higher‑value construction, Patel said. He also warned that exemptions — notably a new business personal‑property exemption effective Jan. 1 — removed roughly $170 million from the tax roll and will reduce net revenue growth.

Patel framed the meeting as the shift from budget development to council deliberation and urged public engagement: he announced a budget town hall for Tuesday, Aug. 25 at 6 p.m. at City Hall and provided an email contact for questions. Councilmembers asked how revenue projections constrained employee pay raises; Patel said staff balanced sales‑tax and property‑tax forecasts against rising costs and incorporated as much as possible in the proposed raise amounts.

The council did not set a tax rate at the meeting; Patel said tax‑rate discussions will be the focus of a later study session and public hearings before the September vote.