Tamela Damron, city finance staff, presented the city’s monthly financial and operations update Aug. 14, telling council the city’s key revenue streams are tracking close to budget and staff expect to complete the annual comprehensive financial report in December.

Damron said sales tax activity is delayed by two months and, based on preliminary trends, she expects June activity to land near 99% of budget. She said room (lodging) tax revenue is up about 3% from last year—roughly $113,000—and currently at 102% of budget, while meals tax is up about 4.6% (about $408,000) and at 102% of budget. A $2 lodging tax line shows a 30.6% increase year‑over‑year (about $34,000) and is at 105% of budget. Historic sales tax is close to last year, down roughly $15,000 and at 91% of budget.

On accounting standards, Damron summarized recent and upcoming Governmental Accounting Standards Board (GASB) pronouncements the city has implemented or will implement, including GASB 87 (leases) and GASB 96 (subscription‑based IT arrangements), and noted future items the city is tracking, such as new disclosures around compensated absences, risk disclosures and infrastructure asset reporting.

Damron also reviewed operational changes: the utility billing system moved to monthly billing, new rates were implemented, the city separated billing from the Hampton Road Sanitation District and the city is implementing a Tyler Payments online portal expected to go live Sept. 30 for taxes and utilities. A digital parking rollout to Passport was discussed at the meeting separately.

On delinquent collections, Damron said the city has seen an uptick in delinquent personal property accounts since COVID and noted personal property has a five‑year collection window compared with 20 years for real estate. The city is preparing a future contract recommendation with a tax collection vendor (attorney‑led collection group) that would work under the city’s existing code authorizing a 20% administrative fee on delinquent taxes; the vendor would pursue delinquent accounts while complying with consumer protections.

Ending: Damron said staff will return with more detail on the proposed collection vendor, the audit schedule, and changes tied to GASB and the Tyler Payments implementation.