Title
Gross Receipts Tax Overview, Affordable Housing Fund Discussion, and Discussion of Process for Gross Receipt Tax Increase, With Possible Action on Budget and Gross Receipt Tax Increment Guidance
Recommended Action
I move that Council direct the County Manager to return with a proposed ordinance for Council consideration to increase the County's Gross Receipts Tax rate by ___%, to be introduced on October 7, 2025 with a public hearing on October 28, 2025, to be effective July 1, 2026.
County Manager Recommendation
The County Manager recommends Council provides direction to return with a proposed Gross Receipts Tax rate as stated above.
Body
In order to keep Council informed of the County's financial status, the County ASD Director will present a Gross Receipts Tax (GRT) and Financial Overview (Attachment A), and impacts on FY2026 GRT projections and the Long Range Financial Projection in an FY2026 Projected General Fund Statement. GRT increment scenarios will be presented (Attachments B-D), and the process to implement a new GRT increment will be discussed. Options for potential funding of an Affordable Housing Fund will also be presented. A discussion on the upcoming bond ordinance and the GRT impact will also be discussed. Council will be asked to provide possible action and direction on a GRT increment to return to Council with for introduction and adoption by formal hearing.
Attachments
A - Gross Receipts Tax & Financial Overview
B - Scenario 1 for GRT Increment 1/2 Cent
C - Scenario 2 for GRT Increment 9/16 Cent
D - Scenario 3 for GRT Increment 5/8 Cent
E - Scenario 4 for No GRT Increment