City staff outlines sales-tax package to close projected $13.3M deficit

City staff presented a proposal intended to address a projected structural deficit that staff estimated at roughly $13.3 million in 2028 if current revenue and expense trends continue. The staff presentation described two ballot options: a 0.5¢ citywide general‑use sales tax (projected to bring about $20,000,000 annually) to support police, fire, public works and capital projects, and a separate 0.1¢ housing sales tax (about $4,000,000 annually) to go into a dedicated housing fund.

Josh, the presenter, told the committee that six months of 2026 collections show sales‑tax receipts down roughly 1.2% year over year and emphasized that the 0.5¢ general tax would go into the general fund while any 0.1¢ housing tax would be placed in a separate fund to permit auditing and restricted spending. He said, “So 2028, we're looking at about a $13,000,000 deficit…we have reserves to cover it if we did nothing, but that's only a one‑time plug,” and walked the committee through a partial‑year revenue example if a March 2, 2027 ballot measure were approved. Staff also noted state reporting lags mean collections would not arrive until months after enactment.

The committee did not take a binding vote on the proposal and instead asked staff to refine the materials and present them to the full governing body for further discussion. The presentation and numbers will be discussed again on September 15 with the full council and later as the council determines ballot language and timing.