At the Feb. 25, 2025 Tumwater Budget and Finance Committee meeting, Troy, Finance Director, told the committee that several major revenue lines appear low year to date because large receipts (notably property tax and state sales-tax distributions) have not yet been received.

Troy said the general-fund property-tax budget is just over $10,000,000 and that only $214,000 has been posted so far; he noted the city typically receives its first large distribution in April and a larger second distribution in October. "We don't receive our first big chunk of property tax until April," Troy said, adding that timing explains the low percentage through the end of February.

Why it matters: timing of receipts makes year-to-date percentages misleading. Committee members were asked to evaluate trends over multiple months rather than a single biannual snapshot.

Troy reviewed other revenue streams: regular sales tax receipts are also pending April distributions, making year-to-date shares look low; business-and-occupation (B&O) tax payments vary because some businesses pay quarterly; utility taxes lag by roughly one month because billing and payment cycles delay receipt. He highlighted building permits as a strong positive: permit revenue stood at about 77% of its annual budget while the city was only roughly 33% through the fiscal year, which Troy said signals elevated development activity.

Troy explained how restricted funds are treated for internal accounting. For the Tumwater Metropolitan Parks District (TMPD), the general fund initially pays eligible expenses and is reimbursed later from the TMPD fund. He said a $695,000 figure shown in the report represented the amount budgeted to reimburse the general fund this year, not the full TMPD revenue for the year. "For the TMPD ... the general fund pays for all the expenses upfront. And then towards the end of the year, . . . we will reimburse the general fund for eligible costs from the TMPD fund," Troy said.

On the Transportation Benefit District (TBD), Troy said the total budgeted TBD revenue is $2,300,000 and the city had received about $580,000 year to date; he noted the TBD vote had passed and will continue for another 10 years. For TMPD overall, Troy said the total revenue projected was just under $2,000,000 and actual receipts were still low because property-tax distributions were forthcoming.

Troy also reviewed utility funds. Large capital projects and anticipated bond proceeds inflate the biannual budget figures, making operating percentages appear low. He said sewer revenues were relatively high because of connection fees this year; those fees increase both revenue and related expenses because some amounts are shared. On golf operations, Troy noted a lag in bank and financial-system processing that can delay reporting of recent good weather and higher play.

The finance director closed by offering a normalized view that removes big capital projects and bond proceeds to better reflect operating performance. He and committee members agreed that monthly review helps the council interpret timing effects.

The committee did not take formal action on the financial report; members asked for the next report after April property-tax distributions to reassess year-to-date percentages.

Ending: Troy said next month's report will include April property-tax and state-distribution receipts, which should materially change the year-to-date percentages.