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Finance director reports sales-tax gains, lower building revenues and falling payroll slippage in midyear budget review
Summary
At the Jan. 9 workshop staff reported sales-tax receipts about $900,000 over budget through December, building-permit revenues down roughly 20% year-over-year, payroll slippage at about 2% and overall vacancies near 5%. Staff said the trust transfer will affect next year’s budget.
City finance staff presented a fiscal year 2025 midyear budget review at the Jan. 9 workshop.
Staff reported combined state and local sales-tax receipts are approximately $900,000 over budget year-to-date and are about 4% higher than the same period last year. Building-permit revenue has declined, roughly 20% below the prior year, and staff said that pattern is cyclical and may react to broader market conditions. Payroll slippage — the difference between budgeted and actual payroll costs due to vacancies and hiring timing — has narrowed to about 2 percent; staff said recruitment and retention have improved, particularly in public safety. Overall vacancies were reported at roughly 5 percent.
Staff noted the city’s transfer-in from the community trust for FY25 was based on a December 31 valuation and that the actual 12/31/24 balance will affect next year’s budget. Staff said MCIT balances (city insurance reserve) are higher than expected, which is favorable for next year’s planning. The finance director said staff will continue monthly monitoring and will propose a budget amendment if conditions warrant.
