Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance Q1 topic
No spam. Unsubscribe anytime.
City reports flat first-quarter revenues, ERP rollout progress
Summary
Finance staff reported FY25–26 first-quarter results: general fund collections of $7.3 million (~7% of budget), sales tax and transient occupancy tax down about 8% year-over-year for the quarter, and an ERP (Tyler) go-live on Oct. 7 with payroll and utility modules scheduled for 2026.
Finance staff told the City Council the city collected $7,300,000 in general fund revenues during the first quarter (July–September), approximately 7% of the fiscal year budget, and noted softness in sales tax and transient occupancy tax compared with the same quarter last year.
Paul Chung said sales tax and TLT (transient lodging tax) were each about 8% down year-over-year for the quarter and that utility users tax showed an 18% delta largely tied to Chevron’s cogen production fluctuations; Chung said these variances merit monitoring but do not yet constitute a red flag pending more quarters of data.
Chung also updated council on the city’s ERP implementation (Tyler): the system went live Oct. 7, staff successfully printed checks Oct. 10 and the HR/payroll module is scheduled to begin a 12-month rollout starting January 2026; the utility billing module is slated for April 2026.
Why it matters: Revenue variances in major sources such as sales tax, hotel occupancy and utility users tax can change midyear forecasts and inform budget adjustments at the midyear review. Staff said reserves remain in place and that a midyear update will show whether adjustments are needed.
Next steps: Staff will return at midyear with updated revenue data and proposed adjustments if trends persist.
