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Finance director warns of slower property‑tax and sales‑tax growth; council adopts midyear budget amendments
Summary
Finance Director Tomo Oku reported a FY23–24 surplus but warned of slower property‑tax growth and a projected sales‑tax shortfall tied to retail departures; council adopted midyear amendments including CIP carryforwards and revenue adjustments tied to grants and reimbursements.
Finance Director Tomo Oku presented the city’s FY24–25 midyear budget amendments on Feb. 18 and delivered a cautionary outlook for ongoing revenue growth.
Oku said the city closed FY23–24 with an approximate $5.6 million general‑fund surplus driven by one‑time items and underspends, with an assigned general‑fund reserve around $32.5 million. He warned staff projects much slower property‑tax growth (approx. 2.3% projected this year versus a 10‑year average near 8%) and identified roughly $2.5 million less in property‑tax in‑lieu revenue and $740,000 lower sales tax (partly connected to Target’s departure) than prior projections. Tomo explained that CIP carryforwards total roughly $17.7 million (including the University Ave overcrossing and a 12‑inch water‑main project) and described how grant reimbursements often lag project expenditures. Council members asked for deeper review of funding priorities and suggested establishing better timeline columns in CIP tables to improve accountability. The council adopted the recommended midyear amendments by voice vote.
