Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
Provo finance staff report $2.2 million sales-tax shortfall; officials say management steps prevented a fund-balance hit
Summary
City finance staff told the Provo City Council the unaudited Q4 FY2024 report showed about $2.2 million less in sales-tax revenue than budgeted and roughly 4.5% below expectations; staff said payroll savings, tighter carryovers and other measures offset the gap and auditors begin field work this week.
John Borgott presented Provo’s unaudited fourth-quarter fiscal report for the 2024 fiscal year and said the city’s sales-tax receipts were weaker than budgeted, leaving an approximate $2.2 million shortfall.
“These numbers are not audited, but they should be pretty close to what you'll see in a couple of months,” Borgott told the council as he walked through revenues and expenditures and a five-year comparison meant to show trends. He said the shortfall was driven primarily by sales tax and that the first distribution for fiscal 2025 came in slightly below both the prior year and expectations.
Borgott explained two specific factors that helped explain the gap: a large business audit resulted in a three-year adjustment that reduced Provo’s receipts, and at least one major retailer missed a monthly reporting cutoff. He told the council staff had identified payroll savings from unfilled positions and had limited carryovers to offset the revenue loss.
At the fund level, Borgott said the library showed a deficit of about $680,000 but retained an approximate $1.5 million fund balance; airport operations produced substantially higher revenues driven in part by increased parking receipts; and the golf course and justice court exceeded budgeted revenues. He also flagged a $620,000 airport-funded appropriation that was covered by additional airport revenue.
Councilors pressed Borgott for detail. Councilor George Hanley asked why Provo’s initial distribution lagged peer cities; Borgott reiterated the audit and cutoff issues and said month-to-month fluctuations make firm conclusions premature, adding staff will monitor new distributions closely.
The presentation included a reminder that independent auditors had begun field work and that the unaudited quarterly figures would be followed by an audited annual report expected in December.
The council did not take formal action on the report; Borgott said staff would return with the audited results when available.
