Don't look for property tax proceeds to bring quick fiscal salvation for Sacramento area cities.

But sales taxes? That's another story.

From Roseville to Elk Grove, a sampling of cities shows forecasts for higher sales tax proceeds for the fiscal year that starts July 1.

Those projections are delivering a dose of hope, despite the burden of unfunded pensions and rising medical costs for government workers.

The added tax revenue is no match for those high-dollar, long-term costs.

But prospects of higher revenue do mean that cities in their fifth year of tighter budgets are gaining some flexibility in restoring cash cushions, protecting existing services and launching some new initiatives.

In Elk Grove, the 2012-13 spending plan adopted Wednesday night includes more than $14 million in general fund reserves and no layoffs. It has all employees picking up their own share of pension contributions.

A 27 percent jump in new car sales – and rising gasoline prices – contributed to the 7.5 percent gain in sales tax revenue for the current fiscal year.

After July 1, look for another 8 percent gain, city officials say, to reach $18.1 million.

That's positive news. But there's no celebration.

"I'm very cautious," said Elk Grove Mayor Jim Cooper. "We've got the auto mall, and that has been very strong in the region.

"Most people have started to get out and spend more money. But I think everybody is still nervous about the economy and the outlook for jobs. So we've still got to be very cautious in our approach to the budget."

In Roseville, the projected $31 million in sales tax proceeds reflect a $2 million gain – or 7 percent – over the current fiscal year.

In Galt, the city's two-year budget outlook calls for a 3 percent rise in sales tax proceeds after July 1 and added gains in 2013-14, thanks in part to the expected opening of a Walmart.

In Folsom, the outlook is for a 4.4 percent gain in sales tax proceeds after July 1.

And in Woodland, where general fund tax revenue generally is expected to decline, the sales tax proceeds are an exception.

Look for a 4.6 percent gain in sales taxes starting July 1.

Sales tax projections are important because it is one of the two largest sources of a city's tax proceeds – along with property taxes.

Since its incorporation in 2003, property taxes have brought the largest single share of tax revenue to the city of Rancho Cordova.

After July 1, that will change.

The city in its proposed budget for fiscal 2012-13 projects a 7 percent decline in Rancho Cordova's taxable values for real estate and a 6.2 percent increase in sales taxes.

As a result, starting July 1 sales taxes will become the city's largest source of tax proceeds for the city's general fund – the pot of money that supports general government operations.

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