Preliminary December financials: construction sales tax boosted revenues but REET declined

The finance director presented preliminary (soft-close) December 2025 financial results and reviewed revenue and expense trends through the January 20 soft-close window.

Staff said sales tax — about 25% of general fund revenue — came in at roughly 93.87% of the budgeted amount for the period, helped by an uptick in construction-related sales tax that contributed about $2.0 million of the $7.6 million in sales-tax receipts referenced in the presentation. The presenter cautioned that construction sales tax can be volatile and should not be treated as recurring base revenue.

Utility tax showed a year-over-year increase of about 7%. Property tax collections were near projections, with staff reporting roughly a 3.47% increase compared with 2024. REET revenues declined about 16% from the prior year and reached roughly 80% of budgeted expectations for that category. Overall preliminary general fund revenues were approximately $24.1 million against a $25 million budget target and spending was about $23.7 million, roughly 92% of the originally budgeted expenditures; final audited numbers will be presented after the formal close in February.

The presenter warned lodging-tax receipts could be less reliable going forward and that staff will watch trends as the LTAC process approaches. No formal budget action was taken at the meeting; the figures were presented for council information.