Revenues generated in the City are responsible for the maintenance of city services. These services include police, fire, infrastructure, library and other services that are critical to the quality of life that residents and businesses enjoy. Often, individuals assume that the bulk of services are paid through payment of local property taxes. The purpose of this section is to identify the sources of revenue and breakdown contributors to these sources of dollars that fund vital municipal services. By articulating these important contributors, policy that supports a balance of revenues can be maintained successfully.
The City of Redwood City has a total Operating budget of $111.7 million for FY 2016-2017. Property tax and sales tax are Redwood City’s top sources of revenue, accounting for 60% of all general fund revenues.
Property Taxes – Compared to last year, City property tax revenues are expected to grow by 5% this fiscal year for a total of $32.5 million in FY 2016-17. Property tax, which has been strong, is expected to continue to grow over the next several years. As the City reaches caps on office and housing development allowed under the Downtown Precise Plan, this pace will slow.
Sales Tax - Sales tax is expected to be consistent with the FY 2016-17 adjusted budget of $23.1 million; however, the budgeted amount represents a slight increase from the estimated actual sales tax revenue expected by FY 2016-17 year-end (as shown in the Five-Year Forecast section). The City is expecting a slight decrease in certain sales tax categories, which should be offset by new sales tax that will be generated by a new auto dealership that is expected to open in early 2018, and other existing dealerships that will be expanding. Increasing gas prices will also drive up sales tax revenues in the transportation category.