ITEM 15 ATTACHMENT 1 - Laserfiche WebLink

services as mentioned above. There are budget decreases in several other categories, including miscellaneous supplies and equipment, office supplies, phones and pagers, uniforms, and printing. Insurance The City's general liability insurance premiums and related costs increased significantly over the last two years and are projected to continue rising in the next two years based on recent industry trends and natural disasters. Major Revenues The City's major revenue sources include Property Tax, Sales Tax, Business License Tax, and Transient Occupancy Tax (TOT) which collectively account for more than 80.0 percent of the General Fund's overall revenues. Property Tax The City's property tax revenue has been steadily increasing since the low of $47.9 million in FY 2011/12 to $97.8 million in FY 2024/25, a 104.2 percent increase over the thirteen years. This has resulted from increasing property values and additional residential and commercial development coming out of the Great Recession. Property taxes are estimated to increase by $3.7 million to $101.5 million in FY 2026/27, an increase of 3.8 percent from FY 2025/26. Sales Tax Sales tax is expected to increase by 4.1 percent in FY 2025/26 and increase by 2.8 percent in FY 2026/27. The increase is largely due to anticipated additional sales tax revenues from the new Costco store, which opened in November 2024. However, based on the cost sharing agreement with Costco, 40.0 percent of the sales tax revenue will be paid back to Costco for costs associated with traffic and street improvements in the Johnson Drive Economic Development Zone until the City's share of the cost is paid off.