Sherwood A&P Commission flags 2025 budget gap after Trail of Lights receipts fall short

At a Feb. 5 meeting, the Sherwood Advertising and Promotion Commission reviewed a shortfall in expected receipts from the Trail of Lights event and discussed adjustments to the 2025 budget to avoid drawing on reserves.

Finance staff member Colleen told commissioners that Trail of Lights revenue in recent years has declined and that the budgeted receipts for the drive-through event — about $3,000 in 2024 — are unlikely to be met for 2025. To reduce or eliminate the need to use reserves, Colleen outlined two potential changes: raising the projected 2% A&P tax revenue to about $1,400,000 and increasing budgeted interest income from roughly $9,000 to $25,000, in part by holding certificates of deposit. Colleen said those changes would “help balance out the reduction of Trail of Lights revenue” and could avoid tapping about $20,000 from reserves.

Commissioners asked for the detailed figures to be provided on paper and generally preferred to delay formal action. A motion to change the budget was not made; commissioners agreed to revisit the proposed adjustments at the next meeting so they could review line-item detail.

Commissioners also discussed short-term options for cash management, including a laddering strategy for certificates of deposit to spread maturities, and noted that receipts from winter events have fallen compared with prior years.

Ending: The commission did not adopt budget amendments at the Feb. 5 meeting; staff will produce detailed budget documents for review at the next meeting and the commission will consider formal amendments then.