During a recent city council meeting, Chief Financial Officer Brian Waldis presented the monthly revenue review for August 2024, highlighting key trends in the city's financial health. The report focused primarily on the General Fund's main revenue streams, including property tax and sales tax, and provided insights into the city's fiscal challenges.

Waldis noted that property tax remains the second-largest revenue source for the General Fund, with recent data indicating a healthy performance. The city received $880,000 in backfill for property tax due to legislative changes made in late 2023, which helped offset previous shortfalls. However, Waldis cautioned that this backfill is not a reliable source for future budgets, as property tax revenues typically stabilize throughout the year.

Sales tax, on the other hand, presented a more concerning picture. The city is currently facing a projected shortfall of approximately $10.5 million in sales tax revenue, primarily attributed to changes in the sales tax base. As of July, the city had already lost $5.7 million in sales tax revenue, with the CFO emphasizing the need for consistent revenue growth to meet rising expenses.

The meeting also touched on the city's building materials use tax, which serves as an indicator of future construction activity. Waldis reported a slowdown in this area, signaling potential declines in economic activity. Additionally, the auto use tax showed a slight decrease, although it was not deemed significant.

As the council prepares for the 2025 budget, discussions highlighted the importance of understanding the implications of the upcoming ballot measure, which could significantly impact the city's revenue. Waldis indicated that regardless of the ballot outcome, the city would need to engage in extensive discussions about budget allocations and potential service reductions.

Overall, the financial review underscored the city's ongoing fiscal challenges, particularly in light of declining sales tax revenues and the need for careful budget planning moving forward. The council will continue to monitor these trends closely as they prepare for future financial decisions.