We have a couple of things on our agenda this evening.

Uh first is our revenue expenditures forecast, and then we will make a motion to go into closed session, which will happen in one C.

I say that for my fellow council members so that you know.

Um so I'm gonna kick this over to our finance department.

I see our director and assistant director.

So Matt Lou, I think I'm hitting this to you.

Yes, good afternoon.

Um today we'll be going over uh revenues and expenditures uh for all of the city funds and the forecast for each one of those, kind of showing what these funds will look like, or we what we anticipate them to look like.

I will talk a couple of slides about the sales tax and how we did last year when we estimate basically the processes that we estimate during this time.

And that might not we have new council members, so they might not know who you are.

Sorry.

This is the chief economist deep debna.

Uh I work for the finance.

Thank you, Deep.

Um so we uh we do this process, we talk about the forecast now, and then some of this number goes to the budget, uh, particularly the sales and use tax.

So I just wanted to highlight what we did last year on the budget.

So around this time uh we uh which eventually become the budget we uh budgeted around seventy-four million total of sales and use tax together.

Uh and we end up getting around seventy-three point nine million.

So out of seventy-four million, our forecast was almost uh to the point.

We are low only by a hundred thousand, because I think this matters a lot when we come to the bigger picture.

Now I can explain this chart and go to the next slide.

So this is you can see this is actually is not the actual uh volume of the tax, it's more the changes as you see on the um Y axis is percentage.

So we it's we constantly grow, except the last year, it's uh growth and the the changes in the growth for compared to the last year in the m in in months.

So we saw a significant increase and around 2022.

We start collecting uh use tax.

That's why we went we see further sharp increase, and then you know, once we start collecting use online tax, people adjust as their adjusted, so now it's more substitute between retail shopping versus online.

So we see see a pattern now going forward now since almost five years.

And then after the COVID and everything, we saw a fall in the incre decrease in the not decrease, like not increase.

You see this fall.

Like not like basically the tax is going flat.

And based on all this kind of assumption uh we are anticipating and then we included our this current month uh tax revenue which uh which is also in lag.

So in May we got the April March sales tax actually, and then based on everything uh we found we are uh anticipating about uh uh three three percent uh increase in our total sales tax and then around uh five percent increase on the use tax, and then uh we see which will be around thirty-two point three million uh for the general fund and five point three around five point three six million for our sales tax.

So now we'll get a little bit into the general fund.

So first we wanted to sort of set it up with some history of the general funds or what our revenues look like over the past five years.

Uh and as you can see, we were at 83, 84 million basically in 2020.

Uh and that increased to 23 million in that short period of time.

So that's something that you normally don't see as something that we also saw on that curve how uh COVID sort of affected uh the revenue that we brought in just because there is more money into the system, and then also the use tax.

Um can we ask questions as we go back?

Yes, yes, please.

So you go back to the last slide, and I I got lost somewhere in the sales tax information.

I I don't know what you were saying.

Well so between the in that time period, this is this is basically what I was talking about, how you saw that curve, that increase uh in sales tax dollars year over year.

Right and then it kind of dropped off.

But this is just the increase part.

So that's from that 2020 to 2024.

So if you look at the sales tax line, you can see it move from uh 23 million dollars uh to 31 in that time period.

Okay, and now you're saying it's falling.

Uh it's flat.

Yeah.

It's more so the the year over year increase are they are not as much as they were in the past.

So you you normally won't see uh 13, 14 percent year over year increase in sales tax.

It's usually somewhere around a 2 percent, maybe 3 on the high end.

Yeah.

And actually in 20 from 24 to 25, it did decrease slightly.

And we are only expecting it to increase by about one to one and a half percent going forward after that.

Well, and I think too, on that slide earlier that was going over, while there might have been some slight increases some years, there were also declines, right?

Like that wasn't it what it was kind of leveling now as far as the percentage change.

It it was from before COVID, it was kind of on a decrease, it was increasing but decreasing, the increase was decreasing every year.

COVID hit, it it shot it up through the roof, and then we came back down.

And we kind of our projections are that we're gonna see slight increases, but not the kind of increases we saw over the last five years.