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Fairview finance director: revenues ahead of prior year but council flagged sales tax volatility
Summary
At the May 6 meeting the town’s finance director reported through‑March revenues at 81% of budget, with sales tax collections up 2.5% year‑to‑date; councilors asked staff to analyze whether recent gains are price‑driven and to forecast risks to collections.
Town Finance Director Steven Venturi presented the town’s financial report for the fiscal year through March 31 at the May 6 council meeting. He said general fund revenue collections totaled $10,266,900 — about 81% of the annual budget and $849,002 higher than the prior year through March. General fund expenditures were $6,029,407, about 48% of budget.
Venturi flagged sales tax as an item for monitoring. Total town sales tax collections (including EDC and CDC portions) to date were $2,605,961, an increase of $64,766 (2.5%) from the prior year. March collections — which reflect January sales — were $330,393, up 13.9% from the prior March. April collections (representing February sales), however, were $312,250, down 4% from the prior year. "My worry is that the volume's going away," Venturi said, noting that much of the increase thus far could reflect price inflation rather than higher sales volume.
Council members pressed staff to analyze the sales tax composition and origin. Venturi said he had reached out to a vendor that analyzes municipal sales tax sources and would seek forecasting to identify sectors or accounts that could be at risk. He said that if price increases reverse or volumes decline, the town could see revenue pressure.
Venturi also reviewed utility fund figures: revenue collections were $4,350,782 (43% of budget), water revenue was up compared with prior year, and expenditures were in line at 46% of budget. He reported quarterly investment holdings and said the town’s pooled investments earned competitive rates despite slight declines in quarter‑to‑quarter averages; cash and investments had decreased due to debt payments.
Council voted to approve the consent agenda, which included routine financial items; no separate action was required on the presentation itself. Councilors asked staff to bring a more detailed sales‑tax source analysis during upcoming budget discussions.
