Fiscal Year 2026-2027 Budget

The Mayor's Proposed FY27 Budget continues funding for City services, programs, infrastructure, and community priorities while maintaining the City's $0 municipal property tax rate. The proposed budget includes approximately $10.34 million in total expenditures and transfers, including $8.94 million in operating expenses and $845,500 in capital investment. FY27 operating expenses are approximately 3.4% higher than the FY26 budget.

Sunset Valley continues to rely primarily on sales tax revenue to fund City operations. The FY27 budget projects approximately $7.22 million in sales tax revenue across City funds, representing a conservative 2% increase over the FY26 budget. No new full-time positions are proposed. The budget maintains existing City services and staffing and includes a 3% merit pool for eligible employees and increased medical insurance costs.

FY27 Budget Highlights

• No City property tax: The proposed municipal property tax rate remains $0.00.
• Capital investment: The budget includes $845,500 for capital projects, equipment, and facility needs. Major projects include $300,000 for design, engineering, and permitting for Brodie Lane pedestrian improvements; $195,000 for Sunflower Trail mill and overlay; $105,000 for engineering of Stearns Lane water and wastewater improvements; and $90,000 for swings, a slide, and shade structure at the City Hall Backyard.
• Public services: The budget maintains funding for police, municipal court, public works, parks and trails, environmental programs, community events, fire and EMS services, and other City operations. No new full-time positions are proposed for FY27.
• Utility infrastructure: Beginning in FY27, projected investment earnings are directed to the Utility Infrastructure Reserve to support long-term water and wastewater infrastructure needs. The FY27 budget includes $975,000 in projected investment earnings for the reserve. View the City's Long-Term Water & Wastewater Infrastructure Plan.
• Proposed Utility Rates: The proposed budget includes increases to water, wastewater, and solid waste rates to help address the growing cost of providing these services and more closely align utility revenues with operating costs. The City continues to subsidize utility operations through the General Fund, with a $388,965 operating subsidy proposed for FY27. View the proposed FY27 utility rates and Utility Rate Study.
• Strong reserves, with long-term challenges: The General Fund budget includes a planned use of approximately $916,738 in fund balance. A significant portion of the apparent year-over-year change results from moving investment earnings out of the General Fund and into the Utility Infrastructure Reserve. The budget continues to maintain substantial City reserves while recognizing the longer-term challenge of operating costs growing faster than primary recurring revenues.

Click Here to view the Mayor's Proposed Budget