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Poulsbo reports stronger‑than‑expected 2024 receipts; sales tax up slightly, real‑estate excise tax above budget
Summary
City finance staff reported the 2024 year‑end results: sales tax receipts were modestly above budget, real‑estate excise tax collections exceeded forecasts, and several one‑time revenue items improved the general fund balance going into 2025.
Finance Director Deb presented the city’s preliminary year‑end financial results for 2024 on March 12, reporting revenue collections that came in above conservative budget forecasts and leaving the general fund stronger than planned.
Deb said the city budgeted $5.5 million for sales tax revenue in 2024 and received about $5.672 million, roughly 1–2% above the budgeted figure. She told council that retail trade showed softness while construction and some wholesale activity supported year‑to‑date totals; the city’s diverse revenue mix helped cushion month‑to‑month variance.
Real‑estate excise tax (REET) revenue was a notable positive: the city budgeted about $350,000 for its quarter‑percent REET buckets and received substantially more (year‑to‑date receipts in the packet showed roughly $589,000 in one quarter‑percent bucket). Deb noted REET is transactional and can fluctuate: sales of subdivisions and large property transactions can produce one‑time spikes.
Other highlights: utility tax receipts came in higher than anticipated (electricity tax and other utility taxes), development fees exceeded projections, park and recreation fees strengthened as programs recovered, and investment earnings were stronger than budgeted due to conservative long‑term purchases made in a higher‑rate environment.
Deb said the result is the city budgeted to draw roughly $2.3 million in reserves but instead saw about $1.2 million of favorable variance; those unspent funds increase one‑time flexibility for council consideration during mid‑year reviews. Deb and council discussed the importance of a structured mid‑year carryover/allocations plan so that any one‑time funds are deployed strategically and not used to obscure recurring costs.
Council members asked for further breakdowns by business district and for follow‑up on B&O tax implementation details; Deb said more granular zone and business‑level data can be shared in the finance office under existing confidentiality rules and that staff will return with further briefings on B&O collections and reporting practices.
