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Council accepts fiscal year-end financial report showing higher‑than‑budgeted TOT and stronger reserves
Summary
Council received and accepted the city’s unaudited financial report for the quarter ended June 30, 2025. Staff reported transient occupancy tax and sales tax exceeded budget and the city’s unassigned fund balance rose to an estimated $3.3 million in the current budget projection.
The Half Moon Bay City Council accepted the unaudited financial report for the quarter ended June 30, 2025, after a staff presentation on revenues, expenditures and fund balances for the fiscal year.
Finance staff noted the numbers presented are unaudited: “every number you see here is unaudited,” the presenter said. The report showed transient occupancy tax (TOT) collections and sales and use tax exceeded budgeted amounts. Staff reported FY2024–25 revenues totaled about $23 million—approximately $2.5 million above budget—and that most departments came in under budget, producing about $1.4 million in expenditure savings. Taken together, staff reported an increase in unassigned fund balance at June 30 compared with the prior budget projection and estimated roughly $3.3 million in available unassigned funds in the current budget outlook; reserves were reported at approximately 8.8 percent.
Staff cautioned that the figures remain unaudited and that next year’s structural deficit could still materialize; however, higher TOT and conservative fee and sales-tax assumptions could mitigate service impacts depending on whether revenue trends hold. Councilmembers thanked staff for trimming expenditures and agreed a mid‑year review will provide additional clarity.
Council action: a councilmember moved and the council voted to accept the quarterly financial report for the quarter ended June 30, 2025; the roll‑call vote passed unanimously.
