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Port Orchard staff report dip in sales‑tax and REIT revenue but say biennial budget cushions impact
Summary
City finance staff told the Feb. 17 finance committee that December 2025 sales tax was about 10% below December 2024 and that REIT receipts were sharply lower; staff said the biennial budget carries the city for now and pledged to monitor early 2026 trends.
PORT ORCHARD — City finance staff told the Port Orchard Finance Committee on Feb. 17 that sales‑tax and REIT receipts dropped compared with 2024 but that the biennial budget provides short‑term cushioning.
Director Bond said December 2025 sales tax was "roughly 10% below December 2024," and that overall sales‑tax collections for the year were 2.8% lower than in 2024. Bond added that REIT (real‑estate transfer) revenue was about 83% lower for December compared with 2024 and roughly 16% lower for the year.
"Against the budget, we're 2.6% above our sales‑tax budget and REIT is 23% higher than budgeted for the biennium," Bond said, noting that those timing differences are why the biennial budget has provided flexibility. He said staff are reconciling 2025 accounts payable and will monitor January and February receipts to see if the early 2026 trend continues.
Committee members asked whether the pattern reflects a wider regional effect. Bond said it was too soon to know and recommended watching next month's receipts. Council members and staff discussed possible contributing factors including slower residential closings and national shutdowns that briefly reduced spending.
Committee members asked staff to keep the committee informed of trends. Bond said staff would continue monthly reporting and would bring the grant and revenue items to the full council where required.
The finance committee will review updated receipts next month as part of the regular revenue-reporting cycle.
