Quarterly financial report: TOT up about $600,000; expenditures rising but tracking to budget

City finance staff presented the quarterly financial report for the period ending Sept. 30, 2022, telling the Financial Review Committee that the first three months of fiscal year 2023 show a notable uptick in transient occupancy tax (TOT) revenue and higher expenditures in several categories.

Staff reported TOT receipts of $5,400,000, about $600,000 more than the same period last fiscal year. Staff attributed much of the increase to inflation and continuing travel demand, which have raised room rates and consumer costs.

On the expenditure side, staff identified several increases: police services rose by roughly $97,000, landscape/tree/park maintenance increased by about $271,000 (largely timing-related invoice payments), professional services were up approximately $900,000, and community activities rose about $76,000 as events and services have resumed after pandemic-related reductions. Overall expenditures were reported at about $9,400,000 for the period and were described as tracking relative to the adopted budget.

Committee members asked whether spending was outpacing revenues and whether any budget adjustments were necessary; staff replied that, aside from TOT strength, most major tax revenues arrive later in the year and no adjustments were proposed. A member moved to accept the quarterly report, another seconded, and the motion passed by a 3-0-2 vote with Member Federico and Chair Mescal absent.

The committee received the report and directed staff to continue monitoring revenues and expenditures; no formal budget amendments were proposed at the meeting.