Staff warns Hurricane is increasingly reliant on sales tax as revenues rise

A staff presenter gave the council a five‑year fiscal snapshot showing that general‑fund revenue has grown from about $14 million to $21 million, while expenditures have increased from roughly $11.5 million to about $16 million.

"We are relying a lot more on sales tax to cover our expenses," the presenter said, calling attention to the city’s growing exposure if the economy slows. Members noted the rise in short‑term rental and transient‑room receipts but said those streams appear to have plateaued in some categories.

The presenter and council discussed the composition of revenue — property tax provides a steady base while sales tax is more volatile — and how state actions that constrain property‑tax growth can amplify pressure on sales‑tax‑driven budgets. Several council members urged conservative budgeting and pointed to the importance of reserves as a buffer for downturns.

Staff said a preliminary budget will be prepared for the May meeting, with a follow‑up “bubble list” workshop before the June meeting to prioritize capital items. Council members will see specific department requests and recommended cuts as staff refines revenue forecasts.