City forecasts $480K revenue shortfall for FY '25 due to hotel tax changes

Georgetown officials are grappling with a significant revenue shortfall as they project a 19% decrease in fiscal year 2025 revenues compared to initial expectations. This translates to a deficit of approximately $480,000, raising concerns about the city's financial health.

During a recent workshop, city leaders discussed the factors contributing to this downturn. A notable point was the impact of hotel occupancy tax (HOT) revenues, which are collected from hotels, motels, and short-term rentals. While the city welcomed the addition of two new hotels this year, the overall revenue from these sources has not met projections.

The city’s budget was adopted with optimistic forecasts, but the current figures indicate a need for reassessment and potential adjustments to future financial planning. As Georgetown navigates these challenges, officials are expected to explore strategies to bolster revenue and ensure the sustainability of city services.

This situation underscores the importance of accurate revenue forecasting and the need for ongoing evaluation of economic conditions affecting local businesses and tourism. As the city moves forward, stakeholders will be closely monitoring the implications of these financial trends on Georgetown's budget and community services.