CFO reports mixed start to fiscal year: PCA near zero, sales and use taxes down

CFO Russ presented a brief financial update noting the city’s power cost adjustment (PCA) for the utility is a negative 0.006 — effectively zero for customers — and that electric operations are performing well. He said water and sewer revenues were higher than he expected given wet conditions and that overall departmental expenses remain under control. Russ told the council that sales tax collections for August were down about 4% compared with last year and use tax was down about 9%, leaving the city roughly $31,000 under last year’s collections for the period noted in the report. He said the city remains ahead of budget because the budget assumes some pullback, and that first-of-year expenses such as insurance and the final audit bill contributed to near-term spending. Russ said hotel revenue figures include makeup months that may continue for another two months. He framed the current position as a reasonable starting spot for the fiscal year and stressed that expenses — which the city can control — are being managed. No formal fiscal actions were taken during the report segment; the CFO invited questions and discussion from council members.