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Ocean Shores finance committee backs codifying 2.5% reserve target after September report shows steady revenues
Summary
The Ocean Shores Finance Committee reviewed September financials showing roughly 42% of budgeted general-fund revenues collected and recommended updating an existing resolution to set a 2.5% reserve target. Members also discussed LTAC balances, a recovered past‑due account, and next steps for golf-course reconciliations.
Ocean Shores Finance Committee Chair opened the Oct. 23 finance meeting at the Ocean Shores Library and said the city’s September financial snapshot looked stable. "The general fund has collected about 42% of our budgeted revenues," the chair said, and committee materials show expenditures at about 40% of appropriations.
The committee flagged several revenue trends: property tax was reported "up 4% over last year," sales tax up about "2%" and utility tax up about "2%," while building permits have declined from the recent building-boom years. Chair members cautioned that comparisons to 2021–2023 capture abnormal growth years and said staff are monitoring year-to-date trends.
The committee discussed a draft resolution that will come to the council. Chair said the resolution still contains language that lists fund targets as a mandatory "will" and recommended updating it to reflect a 2.5% general-fund threshold that the council has been applying verbally. "If 2.5 is 2.5, let's put it there," the chair said, while other members urged clarity: make the document read as a recommended reserve target rather than a codified penalty if the city dips below it.
Members asked staff to review the draft resolution and make any other clarifying edits before the item reaches council, noting the council can still consider the measure at its first November meeting. The committee discussed how the language should distinguish between an advisory target and enforceable ordinance-level requirements; the chair noted an ordinance would create a compliance requirement, while a resolution is a guideline.
Committee members also reviewed LTAC items and hotel‑motel revenue. The chair said LTAC materials include a spreadsheet of available balances and applicant requests and that the committee modeled holdbacks up to 40% (the packet showed holdbacks currently around 30%). Members asked staff to re-send the spreadsheet and follow up with hotel general managers for context on room-rate and occupancy trends.
On receivables, the committee was told that District 7 has brought its account current; the chair reported, "We have recovered from District 7 $67,942.15 in fees owed to the city for services rendered." Members said the details of the collection process need not be discussed in the committee but asked whether the original agreement with District 7 will change; staff said the agreement remains with public‑safety leadership and any changes would be handled by the fire chief and assistant chief.
The committee scheduled follow-up briefings with the mayor and city administrator on a pending reconciliation of the municipal golf course finances and asked staff to present a clearer 2–3 year plan once reconciliations and management-company reports are complete. The chair said finance staff will present the finalized figures to council after meeting with administration.
Next steps: staff will revise the reserves resolution language for committee review and forwarding to council, resend LTAC spreadsheets to members, and report back on golf-course reconciliations and the sewer/water enterprise cost-allocation adjustments.
