City finance officer reports modest revenue gains, healthy reserve

The City Finance Officer told the City Council Finance Committee on March 19 that city revenues through Feb. 28 were up about 1.73% year-over-year, helped in part by a large December receipts spike the officer attributed to a 13.61% month-over-month increase. The officer said March sales-tax receipts rose 0.39%, putting the year-to-date sales-tax increase at roughly 1.59%.

The officer reported the general fund’s expenditures are about 2.5% under the adopted budget so far, and that about $760,000 remains available in the city’s 1% reserve. Hotel–motel (visitor) tax receipts were described as running roughly 32% higher year-to-date than the same period last year.

Council members asked staff follow-up questions about use tax (which has been trending upward), franchise taxes and fees (noted as roughly 7% higher than last year) and whether specific tax lines are dedicated or flow to the general fund. Staff confirmed franchise taxes and fees are recorded as general-fund revenue and are not dedicated to a single program.

City administration said departments were asked to prepare a flat or level-funded preliminary budget for FY2027 to be presented in April, with final allocations determined when the council adopts the budget later in the process.