Finance director: Gig Harbor’s first-quarter revenues look stable; staffing and construction costs are watch items

Finance Director Scott Earl Larson presented the city’s first-quarter financial update, reporting revenues at about 23.1% of the year’s budgeted total and general fund expenses around 18%.

Larson said the general fund’s largest revenue source, sales tax, totaled about $2,270,000 for the first quarter, slightly above last year’s $2,220,000. He noted a roughly two-month lag in sales-tax reporting, so Q1 results include economic activity from the winter holiday season, and he described seasonal patterns that typically push peak activity into summer months.

On utilities and capital, Larson said water and sewer collections should ‘‘catch up’’ as seasonal usage increases and that streets capital spending is currently lower due to timing and project bids. He warned of staffing capacity constraints within departments and said rising construction costs remain a watch item as the city puts projects out to bid.

Council member Stone asked about a chart in the packet that implied the city had completed its comprehensive plan update; Stone said the state’s web site still showed development regulations outstanding. City Administrator Katrina Knudson acknowledged that the development regulations work is still underway and said staff would correct the council packet language and follow up with Director Baker.

Council member Ekberg asked whether future financial slides could show comparable periods from prior years to illustrate seasonality; Larson agreed to add that.

Larson closed by saying overall finances look stable but that the city will watch inflationary pressures and labor negotiation outcomes as potential cost drivers.