CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the September 2021 Financial Report and reaffirm the current revenue diversification model and financial principles in advance of the 2022 budget workshops
body
DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Finance Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The monthly financial report, developed in response to the COVID-19 pandemic, provides timely information and data related to the City's financial position and the local economy. The September report provides a brief overview of current revenue and expense trends; however, the primary focus is a review of the financial principles that guide the City's financial management strategies and their status heading into the 2022 budget season.
DISCUSSION:
Economic Indicators
The emergence of COVID-19 variants has raised new public health concerns. Staff is closely monitoring the economic landscape for potential impacts; however, at this time, all business sectors are operating without restrictions beyond the required use of face coverings.
Revenues
State collected revenues performed well through August. Actual revenues exceed budget projections by 20%, or $9.4 million, year-to-date. Strong returns continue in sales tax, home rule sales tax (HRST), and state income tax. Year-to-date revenues are up 17%, 14%, and 42%, respectively, compared to budget projections. Motor fuel tax remained stable and is 1.6% ahead of projections for the year. Use tax continues to decline in favor of higher sales tax but remains 9.5% above projections.
In August, the City updated its online submission process for local taxes and staff is working to align reporting with this new process. Initial estimates show food and beverage sales exceeded $40 million for the third consecutive month in July. Real estate sales also remained strong at $186 million in July and $208 million in August.
Expenses
Staff continues to closely watch for negative impacts related to...
Click here for full text