Finance director reports modest sales‑tax growth, FEMA reimbursements could boost FY26 outlook

Mister Byrd delivered the town’s monthly financial update for fiscal year 2026, saying sales‑tax collections from July through January show a modest 0.7% year‑over‑year increase driven by retail and construction gains. "Tourism is up 3.4% year to date," Byrd said, and he noted retail is the largest sector and construction activity—largely residential remodeling—was up about 32% year over year.

Byrd said January produced strong month‑over‑month performance (roughly 4% growth versus January a year earlier), with hotels and recreation leading the tourism rebound. He identified grocery and convenience store receipts as an area of short‑term weakness but attributed that to specific non‑filing businesses rather than a broad trend.

On broader revenues, Byrd reported that normalized revenues are projecting modest growth over last year, that real‑estate transfer fees are substantially higher year to date, and that permit revenue is outpacing budget. "We have 6 million in FEMA in this projection. We just finished a FEMA recon and I think we're going to be roughly just under — we have 4,000,000 upside on FEMA," he said, adding that if additional FEMA funds arrive this fiscal year they will improve the town’s projected fund balance.

Committee members pressed Byrd for details about the timing and amounts of FEMA reimbursements and one‑time settlement items in prior years; Byrd said staff will supply a slide with the FEMA figures and will return with any restatements if receipts require them. The committee did not take action on the report; members thanked staff and requested follow‑up data on real‑estate transfer fee drivers and late or missing tax returns that affect the services category.

The committee's next budget review and a public hearing on the FY27 budget were scheduled to appear on the council agenda in coming weeks.