Highlights from Q2 (April through June 2023) include:

• Property and Transfer Taxes
  • Property tax revenues continue to grow in the current Fiscal Year.
  • However, transfer taxes have historically been indicative of future trends in property tax revenues.
  • Transfer taxes have been softening over the last couple of years.
  • This is in part due to an unprecedented increase in transfer activities in FY 20-21, presumably a result primarily of COVID-19 pandemic driven market activity, which was anomalous and unlikely to continue.
  • FY 22-23 transfer taxes YTD have outperformed FY 19-20 (pre-pandemic spike) and previous years, but are still less than the previous two Fiscal Years. FY 22-23 is on track to end at approximately 60% of the 20-21 peak.
• Sales Tax
  • Some significant tax payments have not yet been received and will ultimately be accrued to the year-end total.
  • That being said, projections indicate that Sales tax revenues have softened as compared to FY 21-22.
  • However, FY 21-22 was somewhat anomalous as compared to the previous several fiscal years. FY 22-23 is likely to end in alignment with the years preceding FY 21-22.
• Transient Occupancy Taxes (TOT)
  • TOT revenues continue to be healthy
    
• Business Activity
  • Building fees performed slightly better than FY 21-22, and exceeded budget.
  • Recording fees are down as compared to previous years and on track to underperform as compared to adopted budget.
  • Similar to transfer taxes, these fees experienced an unprecedented increase coincident with the COVID-19 pandemic.
  • However, the revenue projections indicate reduced activity even as compared to pre-pandemic years.
• Gas Tax
  • Gas tax revenues are relatively strong in the current FY and on track to exceed previous years.