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Council members preferred the no-new-revenue property tax rate by a 4-3 vote while reviewing a projected $4 million FY 2027 General Fund deficit. They also directed staff to continue expiring federally funded programs and include a 3% cost-of-living adjustment for non-civil-service employees, estimated at $1.3 million.
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The direction favors holding the property tax rate at the level needed to generate the same revenue as the prior year, rather than increasing it, although the final budget and tax rate were not adopted at this workshop. Staff must address the projected deficit while maintaining programs such as mental-health, eviction-prevention, cybersecurity, transit, and other services previously supported by federal funding. Residents may also see continued incremental electric and water/wastewater rate adjustments, while transit will require an additional $213,000 in General Fund support in FY 2027 and $350,000 annually afterward.
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