City finance staff report mixed sales‑tax results; self‑funded health fund positive while workers’ comp may need supplemental appropriation

City finance staff provided an update on sales tax revenues and internal insurance funds, warning of continuing month‑to‑month volatility and possible budget adjustments later in the fiscal year.

Sheila Perry, finance director, said year‑to‑date sales tax collections were below budget in several categories: the general sales tax was about $59,000 under projection; the half‑percent capital improvement tax was almost $180,000 under projection; and the public safety sales tax was roughly $86,000 under projection. Perry said the city has observed a one‑month‑up, one‑month‑down cycle in receipts and will continue monitoring collections.

On internal funds, Perry reported the self‑funded health insurance cash reconciliation showed a positive balance of about $802,000 as of the most recent claims processing; she said claims for services rendered before Nov. 1 may continue to arrive and that the city would monitor through mid‑January. That balance is an improvement over last year, when the fund required supplemental appropriations.

Perry said the workers’ compensation fund is currently short of the statutory or policy minimum. The city is required to have at least $250,000 in the workers’ comp fund; Perry said the fund was “$432,000 short” at present given unsettled claim provisions, meaning the city will likely need to present a supplemental appropriation request after final outstanding claims are tallied by Oct. 31.

Council members thanked staff for the update; staff said any supplemental requests would be brought forward once the final October claim listings are complete.