New Visalia Costco set to open May 21
New Sam’s Club expected to open this year on S Mooney
The annual mid-year budget review was heard by the Visalia City Council this week- a crucial component in ensuring financial transparency and stability. It allows the City Council to assess major operating funds like the General Fund Budget, make adjustments if needed, and gain a clear understanding of the City’s current financial health, says a Dept of Finance report. For the rest of us – it’s an unique snapshot of how the local economy is doing.
As in past years, General Fund revenues are up in the major revenue categories.The City is currently in the process of preparing the two year budget for FY 26/27 and 27/28.
General Fund Revenues are projected to be higher than budgeted by $9.5 million, almost 10% more than the city budgeted for. The majority of the increase is due to higher than anticipated Sales Tax, Property Tax, Vehicle License Fee Swap, and All Other Revenue categories. The revenues for the adopted budget were conservative for anticipation of a possible recession, says the report. It’s hard to blame these staff estimates that almost always expect less. You could say the council is almost never disappointed that way.
For 25/26 – the current year – Finance had estimated revenue to be $102.5 million. But it came in almost $10 million more at $112 million according to the latest estimate as the fiscal year nears an end, boosted by good sales and property tax increases.
Sales Tax is the largest revenue source for the General Fund and is projected to increase from budget by $2.3 million (5%). Compared to last year’s revenues, sales tax is projected to increase by $1.4 million or 3%.The 3% projected growth is the highest growth since FY 21/22. This increase reflects the City’s diverse economic structure, including business-to-business activity within the industrial parkContinued residential and commercial development is also strengthening the sales tax base and drawing additional taxable activity that might otherwise occur in neighboring cities.
Property Tax is the second largest revenue source for the General Fund and is projected to increase from budget by $3.7 million or 7%. Compared to last year’s revenues, property tax is projected to increase by $2.2 million (10%). This is due to an increase of assessed property values from the County and the continued real estate transactions with higher prices Visalia’s property values continue to increase, which creates higher property taxes when the property is sold. In addition, new commercial and residential growth has continued in Visalia. This projection is provided to the City by the County which is based on the property assessments calculated for the year in September.
Transient Occupancy Tax (TOT) or bed tax is projected to have an increase from the budget of $407,600 (8%).
Operating Expenditures – are projected to be higher than the budget by $3.9 million mainly due to wage and benefit increases that were negotiated with the bargaining units after the budget was prepared. A large portion of the increase comes for the police department budget making up $2.4 mil of the $3.9 mil jump.
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Revenue looking up in Visalia
Actual and Projected Sales Tax, shows the projected sales tax revenue has been above the 15-year average growth of 5.5% since 2011. But sales tax continues to compete with the high cost of living such as rent, utilities, health care, and entertainment. These items decrease the amount of money available to spend on tangible items which results in less sales tax.
the city’s largest revenue source- sales tax- was only $18mil in 2010 but should grow to over $50mil next fiscal year
The 3% projected growth is the highest growth since FY 21/22. “This increase reflects the City’s diverse economic structure, including business-to-business activity within the industrial park. Continued residential and commercial development is also strengthening the sales tax base and drawing additional taxable activity that might otherwise occur in neighboring cities.
So what does the Dept of Finance see going forward?The city’s largest revenue source- sales tax- was only $18 mil in 2010 but should grow to over $50 mil next fiscal year, 26/27, says the city. The estimate may not include expected big sales tax revenue generators like the new Costco, the new Sam’s Club and new Amazon that will come on line over this coming fiscal year. The city sees a budget surplus of over $4 mil annually in coming years unless the economy hits the skids.
Derrel’s Mini-Storage plans two new Visalia locations
Storage king Derrel’s Mini-Storage already has six locations in Visalia and is working on two more. One will be across from the new northside Costco on Riggin on a 20-acre site he recently purchased near the SW corner of Riggin and Shirk. A second location is under construction on another 20-acre site east of Visalia near the old drive-in movie property along East 198.
Maverik travel stores plan east 198 store
Maverik Travel Centers are expanding in California with locations serving the Central Valley.The company has an existing location in Lemoore and a site near Cartmill in Tulare under construction. Now they are planning on an East 198 spot just beyond the Visalia city limits.
Sequoia Park visitation up this year
Recreational visits to Sequoia National Park are up about 13.6 % during the first 3 months of 2026 after a banner year in 2025. In the past three years the park has recovered from the low COVID-era numbers in 2020 of 796,000 visitors, ramping up to 1.3 million in 2024 and 1.38 mil in 2025.