Description
Title: Fiscal Year (FY) 2025/26 Budget Update and Proposed Adjustments
Summary
The City of Sacramento's Budget and Audit Committee Report outlines adjustments for the Fiscal Year (FY) 2025/26 budget, addressing a projected structural deficit of $66.2 million for FY2026/27. The report recommends reviewing and approving several budgetary adjustments, including a net revenue increase of $2.9 million, which reflects changes in various tax revenues. Key affected areas include utility user taxes, property taxes, and a notable decrease in cannabis business operations tax by 10%. The report emphasizes the importance of balancing the budget amid rising expenses and ongoing labor negotiations. It also discusses a proposed two-year budgeting process to better manage future deficits while making commitments from prior year savings to support labor negotiations and budget development. These adjustments are critical to