HomeMy WebLinkAboutMemo - Mail Packet - 12/09/2025 - Memorandum from Adam Molzer re September 4, 2025, CFC Meeting: No Chane to Grocery Tax Rebate Amount
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Memorandum
Date: December 3, 2025
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Tyler Marr, Deputy City Manager
Caleb Weitz, Chief Financial Officer
Jacob Castillo, Chief Sustainability Officer
Chad Wright, Director Housing & Community Vitality
From: Adam Molzer, Human Services Manager, Housing & Community Vitality,
amolzer@fcgov.com
Subject: September 4, 2025, CFC Meeting: No Change to Grocery Tax Rebate Amount
The purpose of this memo is to provide an update on any program changes identified to create
budget savings for the City’s Grocery Tax Rebate Program in 2026.
Summary
The Council Finance Committee’s feedback at their September 4, 2025, meeting indicated no
support for significant changes to the rebate program’s design or eligibility criteria. There was
some openness for potential limited changes to attempt to reduce the rebate budget obligations.
Staff have modeled scenarios that would scale downward the rebate amounts provided to
program applicants based on household size and believe that the limited budget savings
received by the City would not be justified. The 2026 grocery tax rebate amount will only be
adjusted in accordance with the customary annual formula, with no other changes. The 2026
Budget Appropriation does not support changes to the annual formula, and funding for the 2026
program, as designed, is available.
The Grocery Tax Rebate Program and the expenditure pressure it faces are expected to be
further discussed as part of the 2027/2028 budget process.
CC: Chad Crager, Broadband Executive Director
Jeff Rochford, Manager, FP&A
Docusign Envelope ID: 04908341-078D-4946-9CCF-01C33E200D4C
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Claudia Menendez, Equity Officer
Lawrence Pollack, Director, Budget
Wendy Bricher, Finance Analyst
Docusign Envelope ID: 04908341-078D-4946-9CCF-01C33E200D4C