FY27 Proposed Budget

Local Option Sales Tax Fund

The Local Option Sales Tax Fund (LOST) accounts for revenue from a 1% sales tax that is imposed on most goods and services, as defined by State law. This was approved by a majority of voters in 2025 effective for fiscal year 2027. The City’s use of local option sales tax is restricted to property tax relief, public infrastructure and facilities, affordable housing initiatives, and community partnerships. The anticipated revenue for fiscal year 2027 is $14,000,000. The allocation of those funds as approved by the voters is as follows:  50% Property Tax Relief o To lower property tax rates and/or prevent future increases to property tax rates.  25% Affordable Housing o To preserve existing affordable housing, increase temporary and permanent housing supports and improve access to and increase supply of affordable housing for households with low incomes.  15% Community Partnerships o To support arts, culture, social services, economic development and intergovernmental collaborations.  10% Public Infrastructure and Facilities o To fund essential public improvements such as maintaining and constructing public streets, sidewalks, trails, parks and other governmental facilities.

For fiscal year 2027, the planned expenditures are summarized as follows:

Property Tax Relief 20 Cent Debt Levy Reduction Pavement Rehabilation

$1,000,000 2,000,000 1,000,000 1,500,000 1,200,000 300,000 $7,000,000

Fire Station Desgin Trail Construction Library Improvements

Parks Facility Improvements

Affordable Housing Homeless Prevention and Services Preservation of Affordable Housing Increase Supply of Affordable Housing

$ 700,000

250,000

2,200,000 $3,150,000

Partnerships Arts and Culture Social Services

$ 375,000

918,750 67,500

Economic Development

Intergovernmental Collaborations

213,750 $1,575,000

Infrastructure Hold in Reserves for Future Public Projects

$1,400,000

340