Sarah Simonton presented the council with the town's October 2025 financial report and answered council questions about revenue drivers and reporting timing.

Simonton said general-fund year-to-date revenue was $2,858,971, representing about 30.14% of the annual target when contingency is included and about 35.36% when contingency is excluded. She told the council that transaction privilege tax (TPT) collections across all funds were down about 1.7% year to date but noted that October's actual numbers were 7.1% higher than the same month the prior year. Simonton identified construction revenue and commercial rental income as the largest contributors to year-to-date declines: extra construction tax was down roughly 45.6% and commercial rental receipts were down about 33.1% compared with the previous year.

Council members asked for more detail about the commercial rental decline. Simonton said the town receives tax and category breakdowns from the State of Arizona and that those state reports are delayed (October activity may not be reflected in town reports until December). She agreed to work with staff to give council a clearer explanation of the commercial rental numbers and their sources.

Simonton also reviewed expenditures: general fund expenditures were 27.6% of budget through October while personnel costs represented about 72% of the town's expenditures. She said the general fund cash balance stood just under $1.3 million in October and projected a year-end general fund balance of approximately $1.4 million, roughly two months of expenditures.

The council thanked Simonton for the report and asked staff to follow up with additional analysis of commercial rental trends and the data sources used to compile the town's revenue categories.