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County budget office warns sales and occupancy tax growth has slowed
Summary
Budget staff told commissioners that sales-tax growth that fueled recent budgets has stalled and that a state change to occupancy tax will phase out a previously material revenue stream, increasing reliance on property tax growth and fund balance.
Budget Director Keith Lane and other finance staff walked the Board through revenue trends that present the biggest near-term risks to the manager'9s recommended budget.
Lane said sales taxes — the county'9s second-largest revenue source — have shifted from multi‑year growth to a projected decrease of roughly $1.2 million for the coming year, and that occupancy tax revenues will step toward zero over coming years because of state law changes. "We budgeted $131,000,000 [in sales tax] — we're only estimated to collect 121," Lane said, noting a possible $5–10 million shortfall in collections this year.
Staff also flagged EMS patient-fee revenue declines (on the order of ~$2 million) and variability in state hold harmless/Medicaid-related payments. Finance staff told commissioners they are treating uncertain revenues conservatively and continuing a hiring freeze on noncritical positions to limit expenditure growth.
What the board asked for: follow-up analysis of EMS receivables, occupancy-tax receipts and the underlying timing assumptions for sales tax collections. Staff said they will provide those briefings at upcoming work sessions and in the next quarterly report.
