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Hendersonville finance committee reviews July revenues: sales tax and hotel-motel receipts rise; investment income falls
Summary
Committee reviewed first-month fiscal figures showing local option sales tax up roughly $28,000 over last year, stronger hotel-motel revenue, investment earnings down about $10,000, and outstanding capital equipment orders with long lead times for fire apparatus.
The Hendersonville Finance Committee reviewed first-month fiscal reports on Aug. 26 showing mixed revenue signals: local option sales tax and hotel-motel receipts were stronger than a year earlier, while investment earnings were lower and several capital purchases remain delayed by vendor lead times.
Highlights: Jason Gallo, administrative services director, told the committee local option sales-tax receipts were "over last year about $28,000" for the first month of the fiscal year. Hotel-motel tax receipts also rose significantly year over year for the month, with full occupancy in July cited as a contributing factor.
By contrast, the city's investment earnings for July were about $10,000 lower than the same month the prior year; staff attributed the shortfall to reduced available cash balances for investment and an assumption in the budget that rates would fall over the year.
Stormwater and PIP fund: Stormwater receipts included an unusual number of prior-year collections paid in July, and staff said they are reviewing why some accounts remain delinquent. The PIP (public improvement) fund showed strong revenue against budget for the first month and, if the trend continues, staff projected it could finish the year about $80,000 over budgeted revenue based on the first-month pace.
Capital purchases and public safety equipment: The committee reviewed the status of ordered fire apparatus. Staff noted long lead times for replacements and new vehicles; items ordered in prior fiscal years remain outstanding. Committee remarks referenced lead times that had been as long as 36 months on earlier orders but that more recent estimates have shortened to about 24—28 months for some units.
What comes next: Staff will provide follow-up information on stormwater delinquencies and return updated revenue reporting at the next meeting. Committee members asked staff to continue monitoring receipts and capital delivery schedules.
