Shenandoah officials project sales tax revenue will increase 5% in fiscal year 2026-27, according to a budget presentation at the July 8 City Council meeting.
Officials have not yet proposed a property tax rate for FY 2026-27 because certified tax rolls will not be available until later this month, Finance Director Lisa Wasner said. The 2025-26 tax rate was $0.1821 per $100 assessed value. The median taxable value is projected to increase from $425,728 to $440,344 in FY 2026-27.
The fiscal year runs from Oct. 1 through Sept. 30, and the proposed FY 2026-27 budget totals about $21.52 million, down 15.33% from FY 2025-26, according to materials presented at the meeting.
Breaking it down
The proposed budget projects a 3.59% increase in property tax revenue—about $115,795 more than FY 2025-26. Of that increase, roughly $4,700 would come from property added to this year's tax roll.
Mixed beverage tax is the only revenue source projected to decline, while technology department expenses are expected to decrease.
"Revenue didn't really change a whole lot," Wasner said. "We've seen a reduction in mixed beverage [tax] ... alcohol sales are down nationwide. Other than that, most revenues are the same."
Sales tax, which makes up 70% of revenues in the city, could bring in about $9.35 million, according to the proposed budget. Property tax is responsible for less than 11% of the proposed budget revenue, according to city documents.
At the July 8 meeting, Wasner discussed some of the city’s smaller departmental budgets, such as administration and technology.
"Most of these departments, [increases] are usually tied to personnel costs increase, because we are in a step scale pay model, so every year there will be increases to all those categories," Wasner said.
While larger departments, such as the police department, were not discussed at the July 8 meeting, budget materials state that it will see a 2.21% increase in expenses. The police budget comprises 40.75% of the overall city budget.
Next steps
A budget workshop will be held Aug. 5, according to meeting materials. Discussion of larger departments, including the convention and visitors bureau Visit Shenandoah, will take place at an upcoming City Council meeting.
