Moab Reports Strong Winter Tourism Revenue as City Begins FY 2027 Budget Work

Moab's winter tourism season delivered a financial boost the city wasn't fully counting on. At the Moab City Council's first public budget workshop for fiscal year 2026–27, held March 10, City Manager Michael A. Black presented mid-year figures showing tourism-sensitive tax revenues running well ahead of schedule at the halfway point of FY 2026.

The numbers from the city's Q2 budget report are specific: the Transient Room Tax had reached 63% of its annual budget target by mid-year, the Resort Community Tax was at 58%, and the Sales and Use Tax had hit 55%. Property Tax collections stood at 76%, though the city noted that figure aligns with the typical timing of annual property tax cycles rather than any unusual spike. Overall, general fund revenues sat at 48% of the annual budget while expenditures came in at just 36%, meaning departments were spending noticeably below the midpoint of the year.

The city's own assessment was straightforward: "Revenues tied to sales, resort, and room taxes continue to perform higher than expected at the end of the calendar year, reflecting a strong Fall and Winter tourism season." With expenditures tracking low, unspent funds are expected to roll over into the FY 2027 budget. The Q2 report also flagged that none of the major transfers from Enterprise Funds or Restricted Funds into the General Fund had been booked yet, meaning the revenue picture was strong even without those inflows counted.

Most departments were tracking between 45 and 50% of their budgets at mid-year, with personnel costs across HR, the Treasurer's office, the Recorder, Community Development, Police, and Public Works falling in the 48–55% range. Staff called both figures appropriate for this point in the fiscal year and reported no major structural budget issues.

The March 10 workshop shifted quickly from the revenue picture to personnel policy, particularly around the police department. Black voiced support for allowing the department to use a housing fund to help retain officers. "It's really important to realize we were in a crisis at [one] point, and we're not in a crisis now, but we don't want to end up in a crisis again," Black said. "So his points about retention and everything are really important." He also left the door open to extending similar housing support to other city employees. "I'm more than happy to talk with the council about policies and things like that," Black said.

The Q2 Financial Update had first appeared on the February 10, 2026 council agenda, with Black listed as presenter and a staff recommendation that the council formally accept the report as the record of mid-year performance. The proposed motion language read: "I move to accept the FY 26 Q2 Budget Update." Staff committed to continuing to monitor transfers, capital project balances, and departmental spending through the end of the fiscal year. The quarterly review process ties directly to the Moab Strategic Plan's pillar focused on practical, accountable, and responsive governance.

Reporting on the March 10 meeting was provided by Lizzie Ramirez of The Times-Independent, a Report for America corps member covering local government and tourism in Grand County.