Commissioners reviewed the town's fiscal‑year 2025‑26 financial update through August on Oct. 21 and heard staff explain the primary drivers behind year‑to‑date variances and fund transfers.

The town's finance presenter said "Overall, revenues in the general fund are down about 10% year over year," and attributed the decline largely to timing and a drop in construction sales tax receipts. Staff reported the general fund is at about 13% of budget through August and that the year‑end estimate projects roughly 99% of budgeted revenues.

Staff flagged an additional payment to PSPRS (Public Safety Personnel Retirement System) of about $371,000 that posted in the new fiscal year; excluding that item, personnel costs are roughly 4% higher year over year and consistent with expectations after July pay increases and a new memorandum of understanding with the police department. Transfers out rose to roughly $3.7 million compared with $1.9 million last year, driven in part by the parks and recreation bond debt (about $1.5 million in the new fiscal year) after council moved the half‑cent parks sales tax back into the general fund.

On the community center fund, staff said revenues look positive—contracted operating revenues were up about 22% year over year and rounds of golf were up 9% from the prior year and 15% above budget—but the fund will no longer carry the half‑cent sales tax for the full fiscal year. The presenter said two months of half‑cent sales tax posted in the community center fund and staff are proposing a cleanup to move those two months into the general fund to improve comparability; staff also said the general fund would subsidize the community center fund "as needed to keep that fund whole."

Commission discussion covered the timing effects of permit issuance versus construction sales tax receipts and the risk that the community center fund could briefly run a negative cash position because golf and other seasonal revenues are low early in the fiscal year. Staff said the town has covered negative positions in the past and would plan transfers or budgeted subsidies to maintain solvency.

Other fund highlights reported by staff: state shared income taxes were down about 7% (on budget expectations); licenses and permits showed year‑over‑year growth (nine single‑family permits issued through August against a budgeted 107 for the year); highway fund revenues were up about 6%; and the water utility posted about a 22% increase in water sales year over year, a change staff partly attributed to a weak monsoon season. Staff provided year‑end fund balance estimates: a general fund ending balance near $19.5 million (exceeding the prior 30% reserve policy by about $3.5 million, with council moving the reserve policy back toward 25%), a community center fund year‑end estimate around $10.7 million, and capital fund projections of about $14.7 million.

Commissioners raised questions about existing capital commitments, police vehicle replacement schedules and intermittent insurance recoveries that affect revenues. Staff said capital needs exceed available funding in the five‑ and ten‑year CIP and that the new police facility and other strategic items will be studied further through the budget process.

No formal action was taken; staff will update the September quarterly financials to reflect the council reserve‑policy change and provide updated contractor estimates for the community center fund.