The city of Galt is expecting approximately $150,000 less in property tax revenue this fiscal year, according to a mid-year review.
But City Manager Jason Behrmann does not believe it will have an impact on anything that residents will notice.
"I see it as rebounding after this," he said.
Property tax revenue makes up about 46 percent of the city's general fund, which pays for general operating costs such as salaries.
Sales tax in Galt makes up approximately 21 percent of the city's general fund. Compared to last quarter, it is down 17 percent, although Behrmann is not sure why at this time.
Property and sales tax revenues generally make up the largest sources of discretionary revenue for California cities.
Still, the recession that clamped a stranglehold on area governments about four years ago is showing signs of relaxing.
In Elk Grove, for example, sales taxes have been on track to outpace budgeted expectations, while in Sacramento, they showed gains over the prior year.
Property tax revenue for cities statewide has lagged in yearly comparisons. That's because there's a delay between activity in real estate and revenue to local governments. Although there are reports that homes are selling for more, those higher home prices won't translate to higher tax proceeds in many places until after the current fiscal year, which ends June 30.
In Galt, Finance Director Inez Kiriu estimates there will be a 1 percent increase in property tax to half of the city parcels this year.
However, she said, there will be a decrease in assessed value due to reductions related to the Proposition 8 assessed property tax value initiative. It will affect approximately 500,000 parcels citywide. Proposition 8 was a 1978 amendment to California's Constitution that allows for reassessment of property values when the market is in decline.
The city expects an additional $113,000 decrease due to a lag in money owed by the state.
Officials are currently evaluating the effect that will have on the 2013-14 budget, according to Kiriu, who presented the mid-year report to the city council earlier this month.
In Sacramento County, the budget calls for a $10 million drop in property tax proceeds from the prior fiscal year, or about $192 million through June 30. But sales taxes are expected to grow $5.1 million in the period.
The Sacramento Bee contributed to this report.
Contact reporter Jennifer Bonnett at email@example.com.