Jackson City staff report mixed revenue trends; hotel-motel tax down year to date

Jackson City finance staff told the Budget Committee that March non-property tax revenue came in below projections, with local option sales taxes about $70,000 lower than the same period last year and state sales tax receipts about $33,000 higher.

The report said non-property tax revenue is averaging about 1.94% higher than the same period last year overall, but travel-related receipts are showing declines. "This isn't exactly a red alert, but it is something we are watching closely," the presenting staff member said, noting similar signs in other municipalities.

Property tax collections were described as "in line" with the same period last year; staff reported $374,000 more collected year-to-date and about $1,600,000 still to collect for the fiscal year. Based on recent projections from MTAS, the city expects an additional $52,000 in state-shared revenue for the general fund in next year's budget.

Finance staff also said the real and personal property tax assessment increased by more than $130,000,000 since the last billing cycle and that change should generate a little more than $2,000,000 in additional property tax billings in the coming tax year.

Committee members asked for clarification on the decline in tourism-related revenue. The presenter said staff do not have a firm explanation, offering hypotheses that some residents may be choosing cheaper options or postponing travel: "I suspect that there is some reticence on folks to let go of that money...but we don't really know." The staff report noted hotel-motel tax is down about $80,000 year to date and that one month had been $27,000 lower than the comparable month last year.

The presentation concluded without a formal action; staff said they will continue to monitor revenues and report updates to the committee.