Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
FEBRUARY 19, 2026
Subject
SUBJECT: FISCAL YEAR 2027 BUDGET DEVELOPMENT PROCESS: RESOURCES AND PARAMETERS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Fiscal Year 2027 (FY27) Budget Development Process: Resources and Parameters.
Issue
ISSUE
This report sets up the economic context for the upcoming fiscal year with the forecast of sales tax revenues and other resources, cost inflation and other financial risks. A comprehensive and transparent public outreach program runs concurrently during the budget development process to maximize public input and ensure that Metro's stakeholders have an active role.
Staff will collaborate closely with the Board to ensure alignment on funding priorities and financial strategies during the budget development process. This partnership will be reinforced through monthly program reviews, enabling Metro staff to continuously reassess needs, optimize spending, and uphold budgetary balance.
Background
BACKGROUND
The first phase of the FY27 Equitable Zero-Based Budget (EZBB) process began with the Near-Term Outlook Update and analysis of cost growth drivers in January 2026.
Resource projections lay the foundation for the financial framework that guides our fiscal planning. This report outlines the budget development parameters, incorporating key assumptions related to the sales tax forecast, operating revenues, grants, bond proceeds, and prior-year carryover. These assumptions will guide the determination of available resources for eligible projects and programs in FY27.
Discussion
DISCUSSION
Staff is committed to maximizing the use of revenues for all programs, based on each of the ordinances that govern the eligibility and use of funds. However, the most critical step is to develop accurate projections of sales tax revenues.
Sales Tax Revenues
Sales taxes are the primary revenue sources for Metro, representing over half of t...
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