Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Q2 Financial Report topic
No spam. Unsubscribe anytime.
Deputy city manager: Lakewood is tracking above budget revenue in Q2; cautions remain
Summary
The city’s second quarter report showed overall operating revenues up year‑to‑date versus 2024 and the 2025 budget, driven by development services and modest sales‑tax growth; staff urged caution on volatile gambling and utility tax lines and recommended holding discretionary spending.
Deputy City Manager and Budget staff presented the city’s second quarter financial report at the study session, noting year‑to‑date revenue increases versus 2024 and the 2025 budget but urging caution on several revenue lines.
“On the revenue side, the operating revenues compared to year to date 2024, we are up $2,700,000 or 10.4%,” Deputy City Manager Krauss said, pointing to development‑services receipts tied to the Western State Hospital permit as a major driver. Compared with the year‑to‑date budget, operating revenues were ahead about $2.2 million, she said.
Krauss flagged areas of softness. Admissions tax and utility tax collections were below budget; gambling tax showed a year‑to‑date decline, in part because some large payers were late in remitting for June but later caught up. She noted one audit payment had boosted utility tax receipts and that some downward variances reflected timing rather than ongoing decline.
On expenditures, police costs were above budget (partly due to retiree payouts and summer patrols at city parks) and administrative internal service charges were exhibiting timing variances. Krauss said the city’s ending general‑fund balance was about $13.2 million but cautioned that some collected revenues were not yet expended and recommended prudence on discretionary spending.
Krauss also reviewed lodging‑tax (LTAC) and real‑estate‑excise‑tax (REET) balances. Lodging tax revenues were roughly on par with 2024 and LTAC had about $4.3 million available in the fund balance; staff noted 2026 events could add revenue but cautioned against banking specific future proceeds. REET collections were slightly below budget through June but were on target through August and continue to be monitored; REET supports existing debt service tied to transportation projects.
Council members asked clarifying questions about revenue timing, the impact of large gaming operators’ financial stress, and how lodging‑tax allocations would interact with proposed capital asks such as the H Barn. Staff said they would continue to monitor revenue conditions and review discretionary commitments during mid‑biennium adjustments.
