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Tumwater finance director reports mixed 2025 revenue: sales tax volatile, public safety tax above budget
Summary
Finance Director Troy Niemeyer reported year-to-date sales-tax volatility, public-safety sales tax revenue above budget, and general-fund collections at about 91% for the year; departments remain underspent and capital projects continue to drive variance.
Finance Director Troy Niemeyer delivered the city’s final quarterly budget update for 2025, summarizing revenues, expenditures and economic indicators.
Niemeyer said August recorded the highest single-month sales-tax collection in three years and that month-to-month collections have been volatile this year. Year-to-date sales tax is about 2.55% above last year, but the city is roughly 5.7% behind the budgeted expectation on a budget-to-actual basis. Property tax receipts and a newer public-safety sales tax were reported as performing well; public-safety sales tax exceeded its $940,000 budget projection.
Building-permit revenues and business-and-occupation receipts have been stronger than anticipated; several enterprise funds (water, sewer, stormwater) show timing differences but no immediate fiscal concern. On the expenditure side, Niemeyer reported general-fund departments are underspent with total general-fund expenditures at about 76% of budget as of the November report.
Niemeyer highlighted economic risks including a modest uptick in unemployment and rising inflation and explained that some year-end accruals (e.g., Jan. 10 payroll accrual) may reduce the current underspend percentage.
Council members asked about spending cadence and whether departments should accelerate purchases; Niemeyer said he advises against end-of-year "use-it-or-lose-it" spending and that biennial budget carryover options exist.
