SALES TAX

Sales tax in the largest revenue source for the General Fund. It is projected that sales tax revenue for FY25 will be $1.3 million, down from $1.4 million in the prior fiscal year. State sales tax trends are projected to decrease in FY26 based on projections from an outside consultant.

MEASURE O

Measure O is a .25% sales tax increase that was passed by the voters in Weed in a special municipal election held on March 3, 2015. It is estimated that Measure O will provide approximately $280,000 of additional revenue for FY26, down from the projected amount of $300,000 for FY25. These funds have been historically used to fund special projects for the benefit of the Citizens of Weed.

PROPERTY TAX

Property tax rates in California are limited to 1% of a property’s assessed value. Annual increases are capped at 2% per year. The value upon which the tax is based is only increased to full market value upon sale/transfer of a property. Thus, property taxes tend to remain steady. Property taxes are collected by Siskiyou County and distributed to the City. In FY26, the City expects to receive $494,750 based on the prior year collections and the trends in year-to-year increases.

CAPITAL GRANTS

The City has been awarded multiple grants, primarily from Federal sources, to fund multiple public works projects throughout the City. Grantors include Community Development Block Grant, State Water Resources Control Board and the USDA Rural Development.

COPS FUNDING

The Police Department received an amount annually from the State of California for police services. The amount is a minimum of $100,000, but has substantially exceeded that amount in recent years.

FIRE DEPARTMENT GRANTS

The Fire Department will be in the third year of a five-year grant (SAFER Grant) that is awarded to secure 24/7 station coverage. This grant pays up to $50,000 of the wage for a full-time employee with benefits and also allows amounts for training and supplies. In addition, the Fire Department has secured a Fire Mitigation Grant which is anticipated to start in FY26. This grant is awarded by Cal Fire and is in an amount not to exceed $1.58 million.

SEWER AND WATER CHARGES

Fees are collected from residents and businesses within the City for access to water and sewer services. These fees are used to operate and maintain the current water and sewer infrastructure within the City.

STATE GAS TAX

The City is estimated to receive approximately $207,805 from various gas tax sources in FY25. The City anticipates an allocation from the State of roughly $195,500 in FY26. The decrease in revenue is based on anticipated decreasing costs of gas and statewide trends in decreasing tax revenues. State Gas Tax Revenue is deposited into a special revenue fund and is restricted for use on street improvements that is defined by Streets and Highway Code and state and federal regulations.

FRANCHISE FEES

Franchise fees are fees paid by certain industries (cable, gas, electric, waste hauler) that utilize the City right-of-way to conduct business. The City is expecting to receive approximately $215,000 in franchise fees for FY26.

TOT (TRANSIENT OCCUPANCY TAXES)

The City receives TOT of 12% from hotels/motels and other short-term rentals within the City limits. The TOT is collected by the proprietor from their guests and remits the amount collected to the City through an outside contractor on a monthly basis. For FY26 the amount collected in TOT is expected to be $275,000.