Leon Valley finance director reports modest sales-tax gain, flags falling red-light camera revenue and reserve draw

Leon Valley Finance Director Carol Gehring told the City Council on July 15 that year-to-date sales-tax collections are up about 1.32% compared with the same period last year but remain below the 75% pacing target used in the city’s budget. Gehring said sales-tax receipts will be adjusted at year end when accruals are posted and two months of collections are factored in. She also told the council general-fund property-tax collections are about 2% lower year to date but that collections remain ongoing. The presentation turned to a shortfall in red‑light camera revenue. Gehring said the program’s ticket issuance and payments have declined compared with 2024, “and we’re tracking a loss of $235,000,” and that staff expects to use fund reserves to cover the shortfall. She told the council staff anticipates taking “close to $300,000” from the red‑light camera reserve to cover expenses for the coming year and noted the fund balances shown in the presentation were audited as of Sept. 30, 2024. Gehring reviewed other funds and notable items: water/sewer revenue was tracking close to last year’s totals, with higher combined water-and-sewer sales year to date; the city has not yet received some grants that supported 2024 revenues; and several departments remain below the 75% spending target because of project timing. She told the council the pool reopened in May and that pool and facility rentals contributed to miscellaneous revenue. Council members pressed for clarification on sales-tax timing and accruals, and on whether red‑light camera reserve draws would be one-time or recurring; staff said use of reserves was a near-term solution and warned the program is not sustainable long term at the current revenue run rate. Ending: City staff will continue to monitor receipts and return to the council with year‑end accruals and any recommended budget adjustments; councilmember questions prompted staff to offer follow-up spreadsheets and to supply more detailed breakdowns by line item on request.