Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance topic
No spam. Unsubscribe anytime.
March financials: utility-tax strength offsets soft sales-tax; committee forwards report
Summary
Finance staff reported March results showing utility-tax receipts well above budget while sales-tax trails budget expectations; the committee forwarded the March financial report to the May 5 consent agenda and discussed red-light camera revenue declines and cash balances.
Finance Director Steve presented the March 2026 monthly financial report, highlighting mixed revenue signals and a stabilizing cash position.
Steve said sales-tax collections were about 3% above the prior year but slightly under the city's budget forecast, a common pattern linked to inflation and rate effects. By contrast the city's 6% utility-tax component showed a strong favorable variance, in part because recent utility rate increases pushed taxable bases higher.
"Sales tax continues to be doing what it's been doing for about 12 months. It's been coming in about three percent over prior year," Steve said, adding that utility receipts were significantly favorable to budget. He cautioned, however, that interest income remained below budget because the city drew down cash balances for prior capital projects and ARPA spending.
Committee members asked about persistent declines in red-light camera revenue, which the city has used to fund specific positions and services. Steve said he will reflect realistic revenue forecasts in the mayor's budget and that any program funded by unreliable revenue streams will require alternate budget sources if revenues do not recover.
The committee moved the March financial report to the May 5 consent agenda.
Next steps: staff will update revenue forecasts for budgeting and provide follow-up answers to committee questions about the Dumis Bay Center activity, Pacific Raceways hotel-impact documentation and red-light camera revenue.
