Page 40 - FY 2026-2027 Adopted Budget Book
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Methodology
The EDC-4B Street Improvement Fund's major revenue source is sales tax. Sales tax projections have
moderate increases built in over the next five years, with 2% estimated for each of the next five years. This
reflects the City's status of being almost fully built out and sales tax potential being dependent on
redevelopment and economic conditions. It also takes into account recent new businesses that have opened
and expanded the sales tax base.
The overall expenditures in the model are reflective of the increase in the municipal cost index on an annual
basis. The average municipal cost index is adjusted and applied to all expenditure line items to present
forecast results. The average forecast for all expense line items except contractual services, is to increase 1%
per year. Contractual services, which includes construction services for small paving projects, is projected to
increase 3% per year.
The model also takes into account the future plans for specific capital improvement plan (CIP) projects, which
are listed near the bottom of the model in blue text.
Overall, fund balance exceeds the City’s minimum fund balance equivalent to one year of the average annual
debt service, including related expenses
FY 2026-2027 Adopted Budget Book · September 15, 2026 36
