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Sales-tax growth helps but general fund still below budget target, finance director says
Summary
Finance reported sales-tax collections up 9% year-to-date but below the 12% budget target; utility tax revenue down 3% and general fund expenditures exceeded revenues in Q1 before improving in Q2; investment yields averaged about 3.92% after recent reinvestments.
Shelby presented the finance department’s report through June, reviewing sales-tax and other revenue streams, fund balance trajectories, and staffing updates.
Shelby said retail accounted for 45% of June sales-tax receipts, up 8% from June 2025; services were up 15% and construction up 17%. "For the 1st month of this year, all 3 of these categories are experiencing increases... for the 6 months of the year [we are] reflecting a 9% increase compared to '25, but still fall short of the budgeted growth, target of 12%." Shelby said utility tax revenues are down about 3% and that a recent reconciliation of gambling taxes brought some businesses current.
Shelby explained that if the city had closed at quarter one it would have needed to draw from fund balance because expenditures exceeded revenues; in quarter two revenues surpassed expenditures. Shelby said the city’s investment portfolio now yields roughly 3.92% after reinvesting matured low-yield bonds and that the state auditor’s office audit cycles begin in August.
Shelby also announced two retirements and several staff hires, including procurement and contracts analyst Ashley Aylesworth. The report was informational and no council action was taken.
