Title
Discussion and Possible Action on FY2027 Budget Guidance
Recommended Action
I move that Council endorse the recommended FY2027 budget guidance presented.
County Manager's Recommendation
The County Manager recommends that Council endorse the budget guidance as requested.
Body
The County Manager has worked with budget staff to develop preliminary budget guidance. The FY27 budget is being developed as the first year of the FY27–28 biennium and reflects a conservative approach due to continued uncertainty in gross receipts tax (GRT) performance and a lower-than-expected FY25 GRT outcome. Departments have been instructed to maintain flat budgets wherever possible, accommodating only essential inflationary increases for personnel, group health insurance, contractual obligations, and interdepartmental charges. To balance these necessary cost increases, all other non-labor budget categories are guided to implement a 10% reduction. The financial projection incorporates the 5/8-cent GRT increment beginning July 1, 2026, while recognizing ongoing revenue volatility. Staff is seeking preliminary concurrence with this guidance to support timely development of the Proposed FY27 Budget and ensure continued alignment with the County’s long-range financial planning framework.
Alternatives
Council could choose not to endorse the guidance and provide further recommendations, however during the budget development cycle, staff will rely on the guidance provided.
Fiscal and Staff Impact/Planned Item
Fiscal impact is provided in the presentation.
Attachments
A - Budget FY2027 Guidance Presentation