The City of Tumwater Budget & Finance Committee on Oct. 24 approved the minutes from its prior meeting and received a monthly financial briefing from Troy Niemeyer, the city’s finance director. Niemeyer reported a strong September for several revenue streams but warned that the federal government shutdown and missing federal economic data add uncertainty.

Niemeyer said the city collected "$979,000" in sales tax for September and that year-to-date sales-tax receipts were roughly $120,000 higher than the same period in 2023 (about a 1.58% increase). "What I'm hearing from my colleagues when I speak to them is, most cities are down in sales tax collection. So, we're we're doing better than most," he told the committee.

The presentation highlighted other revenue details: public-safety sales tax for September topped $99,000 and is $818,000 year to date; Niemeyer said if monthly receipts remain near $90,000–$100,000 the city could exceed the $940,000 annual budgeted estimate and approach roughly $1.1 million. Business-and-occupation (B&O) tax receipts were reported at about $2.3 million year to date, up roughly $52,000 (about 2.25%) from the prior year. Lodging-tax (tourism) receipts were up for September—"over $25,000," a 21% increase year over year—and the presenter said lodging tax is up ‘‘about $30,000’’ year to date.

On budget-to-actual comparisons, Niemeyer said general-fund expenditures were roughly 66.5% spent year to date, lower than an expected 75%–83% seasonal range, and that lower spending to date offset some revenue shortfalls. On the expenditure side, he reported that police spending was about 10% under budget, fire spending was near budget, and parks and recreation had generally expended amounts in line with seasonal expectations.

Niemeyer reviewed enterprise funds, noting that capital projects make some water-fund percentages look low but that operating revenues and expenditures were generally within expected ranges. He said the golf course had collected almost 99% of its budgeted revenue as of the prior day, with expenses well below budget.

Committee members raised concerns about recent local business closures. A council member said the city recently lost a pet retailer, Fluffy and Floyd, and referenced a local tasting-room/producer, Heritage Distilling, which is closing some retail locations. Niemeyer, citing information passed along from local contacts (John Peters via Chuck Denny), said Heritage has been hit by rising costs, taxes and wages and is closing multiple tasting rooms in Washington and Oregon while keeping locations on tribal lands; he added that Heritage was in talks with two interested parties about the available space.

The presentation closed with a discussion of macroeconomic risks from the federal government shutdown, which Niemeyer said began Oct. 1. He warned that the shutdown has halted some federal data releases—leaving September unemployment figures unavailable—and that longer shutdowns can damp consumer confidence and local economic activity. Niemeyer said the most recent available unemployment rate was 4.3% for August and that the September consumer-price measure Niemeyer relied on showed inflation at about 3% (he noted conflicting media reports that gave different figures).

Votes at a glance: the committee moved to approve the minutes of the previous Budget & Finance Committee meeting; the motion was made by Councilman Sworthout, seconded by Councilman Velthouser, and the chair announced the motion carried after an "aye" vote was recorded.

The committee had no formal action on budget adjustments at this meeting. Niemeyer concluded the presentation by saying, "That's about all I have for you today," and the committee adjourned; members scheduled a work session for the following Tuesday.

Sources: meeting transcript, Oct. 24, 2024 Budget & Finance Committee meeting of the City of Tumwater.