Hickory CFO reports higher revenues, hotel occupancy gains and planned equipment purchases; FEMA reimbursement expected this summer

Deputy City Manager and Chief Financial Officer Rodney Miller presented the city’s third‑quarter financial report on May 6, saying general fund revenue through March totaled “a little over $65,000,000” on a budget of $86,300,000 and noting several trending items including hotel occupancy tax gains, capital encumbrances and investment earnings.

Miller said occupancy taxes tied to hotel activity around the Hickory Metro Convention Center have exceeded expectations; “I’m estimating they’ll probably bring in about $3,000,000 in hotel occupancy tax revenue for this year,” he said. Miller attributed higher overall revenue partly to investment earnings and to proactive purchases and encumbrances to guard against anticipated federal tariffs on equipment.

On expenditures, Miller said the city had spent about $63.5 million through March and that general obligation debt payments for the year had already been made. He told council the city had “locked in pricing for some future fire trucks” and had issued purchase orders for Public Works vehicles to secure current pricing.

Miller reviewed enterprise funds: the water and sewer fund (budgeted at $43.2 million) had received about $31.6 million through March; Miller said the fund’s revenues exceeded expenditures by about $3.4 million through March but that the council had discussed significant future capital needs for water and wastewater.

On building activity, Miller said residential permitting and permit value were notably higher through April — “a 27% increase on residential” permit counts and nearly $100 million in residential permit value through the period — while commercial permit activity was down about 6–7 percent year‑over‑year. He also referenced the Microsoft data center sites in the area, saying when those facilities appear on the tax rolls “we’re talking billions.”

Council members asked about FEMA reimbursement for disaster costs related to the Helene response. A staff member reported that about $2,200,000 had been submitted for reimbursement and that the city expects to see that this summer. Miller and the city manager also reported the airport fund has stabilized with new hangar tenants and that the city is purchasing another garbage truck now to lock pricing ahead of tariffs.

Miller closed by reporting a weighted average yield of about 3.84% on city investments and more than $3 million in investment income year‑to‑date. Council did not take immediate fiscal action at the meeting; Miller’s report was received for information and council had opportunity to ask questions.