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Finance director reports stronger-than-expected sales and hotel revenues; fund balances remain healthy
Summary
Finance staff told the committee that local option sales tax receipts in March were more than $100,000 above the prior year month and year-to-date local receipts are roughly 4% higher than the prior fiscal year; hotel‑motel and several funds are also performing above budget, and staff will present revised fund-balance reporting showing encumbrances.
Hendersonville’s finance director reported on April 28 that several revenue streams are running ahead of expectations, giving the city more flexibility for year‑end planning.
Tamar Hall told the Finance Committee local option sales tax receipts for March were more than $100,000 higher than the same month in the prior year, and that year‑to‑date local receipts were roughly 4% above the prior fiscal year. Hall said state‑shared sales tax receipts were about 3.6% higher year‑over‑year for the current reporting period. “It’s looking good,” Hall said of sales‑tax receipts.
The hotel‑motel tax showed a noticeable increase (Hall said February was about $11,000 higher than a comparable month), which staff attributed in part to storm‑related short‑term stays and spring tournaments that drive lodging demand. Hall and committee members discussed that February and March storm recovery and events contributed to elevated receipts but cautioned that single‑month spikes may not persist.
Staff also reported on investment income, stormwater collections, and the PIP fund. Investment earnings are projecting above budget even as interest rates moderate; Hall said the city is projecting to come in over budget for investment income. The stormwater fund’s month‑to‑month reporting changed after new accounting software implementation; March activity appears higher because the system now records revenue on the date funds hit the bank rather than by prior journal adjustments. Hall said staff will break fund balances into encumbered and available portions on future reports so the committee can see what is actually spendable.
On outstanding purchase orders and encumbrances, staff noted public safety has roughly $3 million in purchase orders, infrastructure projects nearly $1 million, and almost $2 million for paving — together accounting for the bulk of current encumbrances. In a brief procurement note, the committee discussed the cost of new firefighter suits, which Hall said run about $6,300 per suit and are expected to last about 10 years.
The committee asked staff to continue monitoring trends and present the updated, broken‑out fund‑balance report at the next available meeting. No formal budget changes were adopted at the session.
