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Council members press for clarity as staff explains tax-remittance lag
Summary
During the July 27 budget workshop staff explained why packet months lag actual collection months: merchant collection, state remittance, a state holding period, then city receipt (city received May payment that was collected in March).
An exchange at the July 27 budget workshop focused on which month the packet—s sales-tax figures represent.
"The money we collected in May is what we just received in July," Michael said when council questioned the packet labels. He walked council through the timing: merchants collect for a month, remit to the state the following month, the state holds funds and then the city receives them by the 25th of the next month. Several members expressed confusion and asked the finance presenter to clarify which months are compared in reports.
Council indicated they would discuss whether the packet format or reporting cadence should be adjusted to reduce confusion; Michael said the city has historically followed the described schedule and that midyear adjustments would be used to reflect late or additional payments.
