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Budget update: sales tax trending up ~5% and convention center financing next before council
Summary
Finance staff reported March sales tax up 5.4% year-over-year and projected Measure J revenue could reach roughly $22–22.5 million if trends hold; staff also noted convention-center design invoices, a pending Tourism Improvement District (TID) council action, and $841,000 in community grants paid to date.
At the Measure J Commission meeting finance staff (Chris) presented the April budget update and said March sales-tax receipts were up 5.4% compared with the prior year, with a year-to-date trend near 5%. "We were up 5.4% over last year... we're trending to be up about 5%," Chris said, estimating Measure J revenue could reach roughly $22 to $22.5 million if the trend continues.
Chris attributed month-to-month volatility primarily to restaurant and auto sales, noting January showed a meaningful decline in those categories compared with the prior year. "I believe that we had a slower restaurant business in January than prior year. Uh and auto sales... was down as well," Chris said, describing those two sectors as the largest drivers of sales tax fluctuations.
The update forecast additional interest income that could add roughly $400,000 in the next quarter, bringing interest income projections to about $1.6 million for the year if current trends persist.
Chris also briefed commissioners on capital and program spending: he said the city has received early design invoices for the convention center project (about $260,000 so far) and that airport projects funded in part by Measure J have advanced (shade and water-station installations). On proposed permanent financing for convention center improvements, Chris said the Tourism Improvement District matter is expected to go to city council on Wednesday the 27th; staff said that unless a protest receives more than 50% support, the district could advance, shaping permanent financing for the project.
On community initiative grants, staff reported $841,000 in payments issued to date across tracked projects and approximately $10.38 million in projects overall. Staff described the grant-payment schedule for awards above $200,000 (four installments spaced three months apart), and said second-round payments will begin once grantees submit required reports and invoices and commissioners assigned to projects perform site visits.
Commissioners pressed staff on expenditure pacing and whether the commission will spend its full budget this fiscal year. Chris explained the city carries capital budgets across years and that roughly $45 million of budgeted projects represent carryover from prior years; he said actual annual spending will be lower than the total budget and that the commission is currently running a small fiscal deficit (about $529,000) as projects ramp up.
No new appropriations or formal votes on budget changes were recorded during the meeting; staff will return with further updates and refined cost estimates for projects such as the convention center and major capital items.
