City finance presenter Sarah outlines midyear review; retail sales tax fell sharply

Sarah, the city's finance presenter, gave a midyear financial briefing covering January through June 2026 and said the general fund has collected roughly 48% of its budget so far — similar to the prior year. She told the council that property-tax receipts were about $642,000 this year versus $653,000 last year and that year-to-date expenditures were about $1,800,000 compared with $1,900,000 at the same point in 2025.

Sarah identified retail sales tax as the primary driver of a recent revenue shortfall. "The actual revenue collected decreased about 9% from prior year, and that's really due to the retail sales tax decreased," she said, adding that retail sales tax collections were about $303,000 this year versus $588,000 at this point last year. She recommended the council and staff try to identify whether residents are shifting purchases outside city limits or simply delaying large purchases and said a local survey could help clarify the cause.

Staff noted that timing of capital grants and one-time receipts affected comparisons: the utility fund this year lacked the $1.3 million in infrastructure grants and loans that inflated receipts the prior year, and the street fund recorded a $500,000 intergovernmental receipt tied to the Darling Street project that had been expected in the prior fiscal year. Sarah said the city's cash reserves have improved to about $635,000 year-to-date and that staff will monitor revenue trends in the next quarter.