Fruita finance update: lodging tax dips; use tax and building-material permits reflecting post-hailstorm demand

City finance staff told council Monday that most general fund revenue sources are roughly even with last year through the first six months of 2025, but the city's lodging tax is down about 5 percent and the use tax on building materials has risen amid heavy post-hailstorm activity. A finance staff member said sales tax had dipped earlier in the year but returned to parity by June, and that use taxes on building materials have increased because of roof replacements and several large commercial projects. The staff member said the city's lodging-tax decrease appears to result from three factors: some short-term rentals converting to long-term stays after the hailstorm as contractors and professionals occupy rentals during repairs; a statewide dip in domestic and international travel; and last year's receipt of leftover vendor payments that did not recur. Councilors and staff also discussed reporting lags. The finance staff member explained that tax remittances are reported on roughly a monthly cycle and that sales and lodging taxes can appear one to two months after the taxable activity because companies have a 30-day window to submit payments. Clarifying detail provided later in the meeting: a councilor reported that the city has issued 543 roofing permits since the June 6 hailstorm, a count given as an updated figure rather than a formal staff statistic. Planning staff were cited as tracking permit volume so council and staff expect continued use-tax receipts related to repairs over the coming months. Why it matters: the lodging-tax decline has implications for tourism-related revenue and budgets funded by that tax; building-material and use-tax increases are a short-term revenue source tied to recovery from the hailstorm. Staff said the overall revenue picture remains stable but will be monitored as the second half of the year develops. No formal budget action or ordinance was taken at the meeting; staff said they will continue monitoring collections and report back in future financial updates.