Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Murrieta projects flat sales tax, raises property-tax and interest revenue estimates in Q3 update
Summary
City finance staff presented a third-quarter FY24-25 update proposing a $2.2M reduction in sales-tax forecast offset by increased property-tax, interest earnings and other revenues; staff also requested modest appropriations from sustainability reserves for planned facility and vehicle needs. Council approved the adjustments.
The Murrieta City Council on June 17 received a third-quarter FY24-25 financial status report and approved staff's recommended adjustments, which reduce the city's sales-tax projection by $2.2 million but add upward adjustments to property-tax and interest-income estimates.
Finance Director Javier Carmel and Finance Manager Jennifer Terry summarized the numbers: sales tax receipts have trended below expectations and staff recommended lowering the sales-tax budget to $53.4 million for the fiscal year. Offsetting increases include a $2.4 million lift in property-tax estimates and $2.4 million in interest-earnings adjustments based on year-to-date performance, along with $1.6 million in intergovernmental reimbursements.
The adjustments reduce the estimated use of unassigned general-fund balance and change Measure T transfers and sustainability-reserve uses. Staff proposed $1.22 million in planned draws from sustainability reserves to fund previously-approved capital items and one-time needs (stadion repairs, a police mobile command vehicle replacement, and police facility locker-room repairs).
Council members asked about sales-tax trends and whether receipts were likely to rebound; staff said receipts through March were roughly in line with last year but that the city anticipates flat sales-tax performance for the rest of the year and will continue to monitor collections. Council approved the requested budget adjustments and the updated schedule of authorized positions (two title changes) in a unanimous vote.
The third-quarter action is an interim, technical budget adjustment; staff said a final year-end update will be provided after audit close and that quarterly reporting will continue.
