City Council Meeting

Daniel AlexanderstaffThis slide summarizes the tools used to close the earlier FY27 funding gap that I mentioned earlier. First, a 2.5% increase in the real estate tax rate moving from $1.55 to $1.08. Second, a 0.5% increase in the meals tax from 4% to 4.5%. For context, that equates to about 25 cents on a $50 meal. Third, a 6% increase in wastewater rates, which results in an average annual increase of approximately $44.65. Fourth, a 5% increase in the stormwater utility rate, which translates to about $10.19 annually for the average property. And finally, we're utilizing a $5 million in assigned fund balance as part of a balanced approach. Together, these measures close the structural gap created by tuition growth, debt service, and workforce stability while maintaining service levels and protecting our long-term financial position.

Council adopted a four-year zero fare pilot in January of 2022, supported by funding to offset lost fare revenue. Ridership has increased 53% since 2019, the largest increase of transit providers in our region. Zero fare benefits are included here on the slide. We will need to revisit long-term funding sustainability as the current grant support expires. The stormwater utility fund was adopted in December 2021 with fees beginning in July 1st, 2022. The recommended FY27 fee is shown by billing unit. The proposed adjustment is 5%, approximately $10.19 per year for an average property. This fund supports major requirements and projects which are included on this slide. Stormwater is driven by regulatory compliance and long-term climate and infrastructure resilience.

direction and refinement. This is just the beginning. The slide previews the planned work session topics. notably on March 3rd we will hold the joint meeting with the school board will continue general fund discussions review historical real estate tax trends and discuss setting the maximum real estate tax rate to advertise on March 10th we will focus on meals tax proposal and continue our general fund questions on March 24th we will review the CIP and the stormwater utility fund and water fund on April 7th we reserve time for additional general fund discussion if needed on April 14th we'll discuss any council identified topics and on April 28th we'll hold the final work session present draft changes and deliberate prior to adoption the schedule provides multiple