Sonora, CA — The City of Sonora’s tax revenues are coming in stronger than initially projected during the first half of Fiscal Year 2025/26.
City Administrator Chris Gorsky provided the city council with a mid-year budget update at this week’s meeting. The Measure Y sales tax (1%) revenue beat estimates, coming in at $2,172,577 at midyear, compared to $2,098,915 at this point in Fiscal Year 24/25.
Additional sales and use tax revenues were $1,751,394, compared to $1,576,555 last year.
Transient Occupancy Tax Revenues were down compared to last year, but still beat the original 2025/26 budget projections. First half revenues were $262,038, compared to $298,276 at this point in Fiscal Year 2024/25. It was noted that this year’s revenue was boosted by past due TOT payments in February.
Cannabis tax fees are down this year, $335,766, compared to $336,965 last year.
In total, the city has over $300,000 in unanticipated revenue that will be used for efforts like projects, paying unfunded liabilities, and boosting reserves.
Gorsky did conclude, cautiously, in his presentation, “In summary, economic conditions remain mixed, with continued uncertainty in consumer spending patterns and cost pressures affecting local governments. For Sonora, whose local economy and sales tax base are heavily influenced by a limited number of major retail establishments, these trends reinforce the importance of cautious revenue forecasting and disciplined financial planning.”
Gorsky also indicated that the city’s big retail stores have been faring better than some downtown businesses.
He concluded, “Despite these challenges, the city’s revenues have been resilient in the first half of the fiscal year.”
Breaking down the budget numbers, 32% goes to the police department, 14% to the fire department, 13% to public works, 12% for capital projects, 10% for admin/finance/clerk, 7% for community development, 6% for general services, 4% for engineering, and 2% for the city council.
Mayor Ann Segerstrom noted how the passage of Measure Y has put the city in a much stronger financial place, and concluded, “I think that the public can now look out for bigger things happening for the City of Sonora, and these kinds of budgets, and our stability, go a long way to ensuring that we can move forward with our plans.”
