Tumwater posts sales‑tax rebound in August; city finance warns of volatility

Finance Director Troy Niemeyer told the council that August 2025 produced the city’s highest monthly sales‑tax collections in three years, improving the year‑to‑date total to roughly 1.8% above last year on a month‑to‑month basis. Niemeyer cautioned that sales tax is volatile: "We've had the highest and the lowest in the same year," he said, noting April was the lowest month earlier in 2025. He described public safety sales tax receipts (a voter‑approved measure that began mid‑2024) and said that B&O tax and building‑permit revenues also showed gains; building permits had already exceeded the year's budgeted revenue through August. Niemeyer reviewed enterprise funds and explained that large capital projects — notably a planned water storage facility and an operations & maintenance center — skew year‑to‑date percentages because their revenues and expenses are tied to project timing. Golf and parks revenues are seasonal and expected to increase with late‑summer activity. He also summarized macroeconomic indicators (GDP, unemployment, inflation) and noted some emerging risks, including higher jobless claims and tariff‑related inflationary pressures. The city auditor’s entrance conference for the fiscal audit was underway and budgeted at about $80,000. Councilors asked for follow‑up analysis on August sales tax drivers and noted community concerns about food costs and housing instability.