City Finance director cautiously optimistic

Short term rental tax, visitor driven revenues expected to be higher than June 2019

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Avalon Finance Director Matthew Baker told the council he was cautiously optimistic about the city’s revenues on Tuesday, Aug. 3.

Baker said information about June 2021 transient occupancy taxes (TOT) and visitor-driven revenues were still coming in. “So far, it looks like June is going to be a really strong month, following up a record-setting month in May,” Baker said.

“Cross channel wharfage is going to be up compared to pre-COVID June 2019 by about 10% and I expect TOT’s going to be up more than that,” Baker said.

The percentages he gave appeared to be informal estimates. Baker said the city was still processing checks as they came in.

“We’re still cautiously optimistic about the summer,” Baker said.

“We’re waiting for cruise ships to return to the harbor,” Baker said.

(Cruise ship visits to Avalon were part of the local economy until the pandemic hit in 2020.) 

Baker said the city is also watching COVID developments.

According to Baker, the last few months have been positive.

Baker expressed the opinion that the city will have to draw some money from reserves, but he expected the draw on reserves to be less than previously expected.

Baker said he was planning a more detailed report for a future City Council meeting. 

City Finance director cautiously optimistic