The beginning balance of net position was restated due to an error corrections related to fiscal year 2024 construction in progress and accrued interest. See Note 18 in the notes to the basic financial statements for further information.
Total revenue decreased by $0.94 million from $155.47 million to $154.53 million. Factors that contributed to the changes in revenues are as follows:
Transient occupancy tax increased from $23.02 million in 2024 to $23.88 million in 2025, a slight increase of $861.33 thousand.
The City's sales tax increased by $5.99 million from $25.39 million in 2024 to $31.38 million in 2025. The increase showing some early revenue growth from the sales tax measure passed by voters in November, 2024 and that went into effect in April, 2025.
In 2025, the City's investment earnings saw a decrease of $1.40 million from prior year, reflecting a less favorable interest rate environment from prior year as rates stabilized and began to ease from the elevated levels that drove strong earnings in prior year. The City continued to utilize multiple investment vehicles throughout the year, taking advantage of high interest rates available in short-term investment pools such as the Local Agency Investment Fund (LAIF), and the California Asset Management Program (CAMP), along with the reinvestment of maturing investments into long-term investment products.
Charges for services grew by $2.58 million from $39.35 million in 2024 to $41.93 million in 2025.
Operating contributions and grants recognized an increase of $526.15 thousand, while Capital contributions and grants decreased by $12.60 million, from $17.31 million in 2024 to $4.71 million in 2025. This decrease was largely due to Capital Contributions and Grants received in the prior year for Housing and Redevelopment and Library functions not received in this fiscal year.