Finance Director Noah Crocker said Sept. 16 that city sales tax collections for August were about 4% lower than the same month a year earlier, though they remain roughly 7% above the city’s adopted budget. The Real Estate Excise Tax (REET) was stronger year‑to‑date compared with 2024 and is close to fulfilling the 2025 REET budget.

The council’s finance committee heard the revenue update at a regular meeting. Crocker, speaking to the committee chaired by Mark Trenary, said the city tracks sales tax and REET closely because together they materially affect the general fund and capital projects, respectively.

“No, we are still trending above budget, but that’ll continue to shrink as we close out the remainder four months of the year,” Crocker said, describing monthly declines in sales tax collections even though the city remains ahead of budget overall. He told the committee that REET collections were “about $90,000 short of revenue to meet our 2025 budget,” and that REET year‑over‑year collections were “roughly 23% more in revenue when we compare it to 2024 at the same time.”

Committee members asked about how other revenue streams are monitored. Crocker said staff tracks all revenue sources and that the mid‑biennial budget review underway will fold observed trends into 2026 budget planning. Council member Morrissey asked whether other revenue streams are dashboarded the same way; Crocker responded that sales tax and REET are the most impactful to the general fund and capital program and therefore receive particular focus.

The committee also reviewed the lodging tax (LTAC) fund. Crocker said LTAC (fund code 01/2007) shows a fund balance of about $590,000 and that year‑to‑date lodging tax receipts exceeded the budgeted amount: the city budgeted about $102,000 and had collected about $128,000 so far. Crocker said those stronger lodging tax receipts will feed into LTAC discussions and community event center planning.

The committee gave staff direction to continue monitoring revenues and to incorporate the observed sales tax and REET trends into the mid‑biennial budget review and next year’s budget development. No formal votes were taken at the meeting.