Finance director reports May sales‑tax shortfalls; estimated fund balance above reserve, health‑insurance supplemental expected

Miss Perry (Staff member) presented the city’s standard monthly financial report for the May 2025 receipt period. She reported year‑to‑date general sales tax collections are approximately $141,000 below budget projections; the capital improvement sales tax and parks sales tax are each approximately $150,000 below projections; and the public safety sales tax is about $76,000 below projections.

Miss Perry said other revenue categories are running above projections and staff is monitoring whether that will offset sales‑tax shortfalls in the general fund; she noted that sales‑tax shortfalls do not automatically affect dedicated sales‑tax funds (parks, capital, public safety). She also said some surtaxes and the marijuana tax are collected and remitted by the state, which can create reporting lags that staff are monitoring.

On fund balance, staff presented an estimated fund‑balance report showing the city’s estimated undesignated fund balance would be about $909,000 over the 17% reserve threshold. Regarding health‑insurance costs, Miss Perry said it is difficult to finalize year‑to‑date comparisons because claims processing lags; she still anticipates the city will need a supplemental appropriation by year end but said the final supplemental amount is too early to determine. When pressed by Councilman Thomas, Miss Perry said she believes last year’s supplemental was about $1.2 million in total with roughly $750,000 charged to the general fund but said she would confirm those figures.

Miss Perry invited questions and indicated staff would continue to monitor revenues and claims and report back as additional information becomes available.