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 $124.9 million for FY 2018-19. Property tax and sales tax are Redwood City’s top sources of revenue, accounting for 58.3% of all general fund revenues.
Property Taxes – Property taxes are budgeted at $52.0 million. This is a 9.2 percent increase over the FY 2017‐18 adopted budget of $47.7 million. The increase is primarily driven by the completion of new development properties, and increased assessments of commercial and residential properties
Sales Tax - Sales tax is budgeted at $23.9 million. This is a 3.6 percent increase over the FY 2017‐18 adopted budget of $23.1 million. Sales tax revenues in the City are primarily derived from automobile dealerships and several large retailers. Sales tax revenue growth is slowing in general due to changing consumer preferences. Sales tax is expected to remain flat in future fiscal years beyond FY 2018‐19.