Nothing is set in stone yet, but Tracy City Council members at Monday’s budget meeting offered a hint as to what the 2027 levy increase will look like.
With six members present, the council was split right down the middle, with three members favoring a 6% increase and the other three siding with an 8% bump, with the expectation that that number will be lowered to 6% before the levy is certified in December (the preliminary levy can be lowered before then but not raised).
“Every town is going through this,” said Tracy City Administrator Jeff Carpenter. “The proposed County (preliminary levy) was 11.9%.”
Council member Seth Schmidt said he would “reluctantly” support a 6% levy increase.
The spreadsheet offered to council members Monday showed the effects of a 4% annual increase, a 6% annual increase and an 8% yearly increase. A 6% increase would result in the City being financially caught up in about three years.
“Whatever we do, I’d like to see it stay the same for a couple of years,” said council member George Landuyt. “Let’s try to keep it somewhat consistent so people can kind of plan; let’s try to hold the line for more than just one year.”
Like Schmidt, Landuyt and council member Jan Arvizu voted for a 6% hike, while council members Jeri Schons and Dave Tiegs, and Mayor Pam Cooreman voted for the 8% option, assuming — barring any unforeseen expenses — the City will be able to settle on 6%.
“I don’t want it to be (8%), but I’d rather have the ability to come down,” Tiegs said. “We (council members) have to pay it just like everyone else in town. In December, I want to say it’s 6%, but I’d rather have that leeway hanging out there for (the next) two months to let us work through it.”
The projected budget for 2027 includes a number of Capital Improvement Projects totaling $182,000. This includes moving up the replacement of an 18-yearold Chevy pickup for an estimated $48,000 from 2028 for the Public Works Department.
“Everything that was asked for is in there right now,” said Carpenter. “This is putting everything in there that is being asked for through 2032.”
The council has already rubberstamped another 3% increase in utility rates for 2027 and the four years after. Those yearly increases will all but pay for the 20-year Phase E loan.
One big unknown for the future is Local Government Aid from the State, a question that no cities can answer right now.
“It’s earmarked for us right now, but remember, it started out at $2 million, then it went to $1 million, now it’s at $750,000,” Carpenter said. “We’re trying to predict the future by putting the CIP together to figure out what department heads need. We already have moved a few things around.”
Carpenter said he will continue working with Bollig, the City’s engineer, on potential loan options for big-ticket items like a rescue pumper, jet vac truck, rescue pumper chassis, street sweeper and a new filter system for the pool.
The General Fund balance increased by $253,727 in 2025, the result of revenues and transfers exceeding expenditures and transfers out. The State recommends a fund balance of 35%-50% of fund operating revenues or not less than five months of operating expenditures. The current unsaying fund balance of $1,418,519 represents 58.7% of 2025 revenues, and maintaining this fund balance will ensure adequate working capital and cash flow for the City.
The council will officially vote on Monday.
“Rest assured, we are continuing to look at it with department heads and everybody else,” said Carpenter.
