City finance staff: revenues running ahead of budget after one large use-tax payment

Erin, a city finance staff member, told the Mayor and Board of Commissioners during a study session that year-to-date collections across all city funds are about 69% of the annual budget and that the general fund and the municipal authority (EMA) are the largest drivers of the variance. “Throughout 6 months we’ve collected overall 69% of the revenue that was budgeted for the year,” Erin said.

Erin said general fund year-to-date receipts totaled $45,400,000 against a six-month budgeted amount of $30,000,000, yielding a $15,300,000 positive variance. She attributed roughly $5.2 million of that variance to stronger sales tax receipts and singled out a late payment from a large manufacturer as a major factor: the company paid an overdue use tax of about $3.8 million in December, a one-time event that contributed to a roughly $4.3 million December variance. “Typically, that is not the norm,” she said of the manufacturing company’s payment.

The finance presentation broke down sales tax by industry and showed retail accounts for about 60% of local sales-tax receipts, followed by hotels and restaurants at 17% and manufacturing and wholesale…