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Finance director flags timing‑driven revenues and a modest sales‑tax shortfall; city to report more details in November
Summary
Finance staff told council early fiscal‑year figures are timing‑driven (property tax, Measure T, vehicle license fees) and warned of a potential modest sales‑tax shortfall; staff will return with year‑end adjustments and a clearer revenue picture after November true‑ups.
Finance Director Ramirez presented the quarter 0.25 fiscal review and explained that early fiscal figures are affected by timing: major revenue items such as property tax, vehicle license fees, and Measure T are received later in the fiscal year, producing lagging early actuals.
Ramirez said general sales tax was budgeted at $3,200,000 for the year but that only a small first payment had been recorded to date; the city's sales‑tax consultant expected a modest shortfall for the full year and staff said the next quarterly true‑up (late November) will provide a better picture of any revenue gap.
The director also explained a $1.7 million pending receipt carryover from FY 23/24 and said staff will recommend the appropriate year‑end accounting entries to address it. Council asked for improved visualizations (color coding) to show items on track, items needing attention and risks; the finance director committed to an updated, more visual report in the next circulation.
Why it matters: Sales tax and Measure T are material general‑fund revenue sources; early indicators of a shortfall, even if modest, can affect budgeting choices and service planning.
Next steps: Staff will present a more complete Q1 true‑up and year end report to the finance committee and council in early November and will provide the Measure T annual report.
