About Tulare's Budget Cycle

The City of Tulare's budget cycle runs from July 1 to June 30 of the following year. Each June, the City Council adopts the Annual Operating Budget for the upcoming fiscal year, effective July 1. Budget preparation begins several months earlier, as the City Manager’s Office, Finance Department, and City departments collaborate to project revenues, assess needs, and align spending with community priorities.

Throughout the year, staff provide quarterly financial updates and work with the City Council to review financial performance and policy goals. In late fall, the City Manager reports on the City’s fiscal position and outlines upcoming priorities. This is followed by a mid-year budget review in February, during which the City Council provides additional guidance. In the spring, the City Manager presents the proposed budget for the upcoming fiscal year to the City Council, which is then reviewed during public hearings where residents are encouraged to participate. The process culminates in June with the adoption of the final budget, marking the start of a new fiscal year and the next cycle of planning and evaluation.

Budget at a Glance

Explore the digital Budget at a Glance to see where funds come from, how they're used, and how the budget supports our community.

Current Operating Budget

The City of Tulare’s operating budget for Fiscal Year (FY) 2026 is $177,938,330. This budget encompasses expenditures for the City’s day-to-day operations across the following areas: Administration, Community Development, Community Services, Engineering, Finance, Fire, General Services, Human Resources, Mayor & Council, Police, Public Works, Non-departmental, and other functions. The operating budget is funded through a combination of taxes and service fees and does not include major capital construction projects, which are budgeted separately.

Current Sales Tax Revenue

The City of Tulare’s projected sales tax revenue for FY 2026 is $22,300,000. This shows a decrease in revenue compared to FY 2025. Sales tax revenue helps fund local services, including public safety, streets, parks, and community programs.

Top Sales Tax-Generating Sectors

Tulare’s biggest drivers of sales tax revenue come from three main areas: transportation, general retail, and business-to-business sales.

• Transportation leads the pack, fueled by vehicle purchases, gas station sales, and auto-related services.
• General retail follows closely, powered by the everyday shopping that keeps a city moving, like clothing, electronics, and home goods.
• Business-to-business transactions round out the top three, reflecting the behind-the-scenes economy: companies buying from other companies, from office supplies to equipment and other commercial necessities.

Key Completed Projects from Major Budget Investments (Past Three Years)

The City of Tulare has recently completed several major projects to improve public facilities and community infrastructure.

• In early 2023, energy efficiency upgrades were completed across more than 13 City facilities, including solar, lighting, and HVAC improvements, which reduced energy costs and supported sustainability.

• In September 2024, the City Council approved construction of a new emergency homeless shelter, which will feature a steel building, modular office structures, a food pantry, laundry and classroom facilities, restrooms and showers, a modular unit village, and supporting site improvements. During this period, the City also finalized its award-winning Downtown Master Plan in partnership with MIG. The plan received the Award of Excellence for the Comprehensive Plan from the Central California Chapter of the American Planning Association for its thoughtful, community-centered vision.

• In May 2025, the City completed the renovation of Zumwalt Park, transforming it into a premier regional destination for recreation and entertainment. The park features the Adventist Health Amphitheater, which includes a main stage, tiered seating, enhanced lighting and landscaped grounds, along with a playground and splash pad for families to enjoy.

The City of Tulare completed the $15 million renovation using only $5 million in general fund dollars. The transformation was made possible through a combined investment of $5 million in park development impact fees, $5 million in general fund capital improvement project funds, and $5 million in federal ARPA funds.

• In June 2025, the City of Tulare opened its first dog park. The K-9 Bane Dog Park honors K-9 Bane, who died in the line of duty in December 2018. K-9 Bane was a brave police dog who gave his life protecting his partner, Officer Ryan Garcia. The dog park was developed in alignment with the City’s Parks and Recreation Master Plan, with residents ranking it among the top priority action items for the City. This capital project was budgeted for in FY 2025.

These accomplishments reflect the City’s ongoing commitment to enhancing accessibility, public services, and community resources for residents and visitors.

Upcoming Financial Challenges

The primary financial challenge facing Tulare is maintaining a structurally balanced General Fund budget, where revenues consistently meet or exceed ongoing expenditures over the long term. This has become increasingly difficult due to various factors. Sales tax, the City’s primary revenue source, is slowing and continues to trend downwards. Additionally, as with many other cities, inflation, rising pension costs, homelessness, and deferred maintenance pose additional challenges.

Annual Audit

Each year, the City of Tulare prepares an Annual Comprehensive Financial Report (ACFR). This report includes the audited financial statements for the previous fiscal year and shows the City’s financial position and how it changed during that time. It provides a clear and accurate picture of the City’s finances and helps ensure transparency and accountability in how public funds are managed. Access the City's most recent reports using the link below.

Annual Comprehensive Financial Reports