FY27 Proposed Budget

meet a public need. While both are acceptable pathways, relief through levy reduction should be part of the City’s strategy.

This budget allocates $1 million of LOST for a property tax reduction to decrease the property tax levy by 20 cents, reducing the City’s levy rate from $15.63 to $15.43 per $1,000 of taxable value. The remaining funds are allocated to invest in capital projects and prevent an increase of the debt service levy. Without these funds, the debt service levy would need to increase by an estimated $0.49 by FY 2030. Projects funded through LOST in lieu of debt financing include:  $2.0 million to expand the City’s pavement rehabilitation program, which repairs streets and improves curb ramp for improved accessibility.  $1.5 million for the extension of the trail along Highway 6.  $1.2 million to replace original flooring and furnishings at the public library.  $1.0 million for conceptual designs of a new Fire Station #1 and modernized Station #3.  $300,000 for seating replacements at the Riverside Festival Stage in Lower City Park.

Key Strategic Plan Actions: Property Tax Relief

 2.4 Identify additional opportunities for road diets, sidewalk infill, curb cut and accessibility enhancement, and bike lane installation with a goal of at least two such projects each construction season.  2.8 Consider adding or retrofitting bike pathways that are separated from streets or protected utilizing flexible bollards.  5.2 Complete a City Hall and Public Safety Headquarters space needs study and develop a plan for next steps toward implementation.  5.6 Design replacement and renovated facilities for operational efficiency, capacity for growth, employee safety and health, resilience, alignment with Climate Action goals, and civic pride.  7.5 Significantly bolster the Facility Reserve Fund and develop an implementation plan for use of funds that minimizes large debt issuances.

Affordable Housing

The ballot language requires that 25% of LOST funding be directed to affordable housing that benefits residents with lower incomes, estimated to be $3.5 million in FY 2027. This budget proposes allocating 90% of this funding ($3,150,000) to the following purposes:  $1.25 million to support development of new publicly owned affordable housing. Staff anticipates this amount is needed for at least two years to achieve the maximum number of affordable units as part of the multi-family project planned for Summit Street.  $700,000 to support programs benefitting the unhoused. This includes $200,000 for the winter shelter and street outreach. This would relieve $40,000 in the General Fund and free up over $100,000 in the Affordable Housing Fund for reallocation to other initiatives. The remaining LOST dollars ($500,000) would provide operational support for permanent supportive housing in light of changing federal priorities. Exact use of the permanent supportive housing dollars will be determined after further input from service providers.

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