Temple finance staff report first-quarter FY2025 results; sales tax trending above prior year after adjustment

Tracy (identified in discussion and represented by finance staff at the workshop) presented the city’s first-quarter financial report for the three months ended Dec. 31, 2025, at the Temple City Council workshop on Feb. 18.

Why it matters: the report provides an early-year snapshot of revenues and expenditures and previews capital and bond planning that will affect project funding and timing for the fiscal year.

Key figures and highlights presented by finance staff - Year-to-date through the quarter: general-fund revenues were reported at 31.53% of budget; water and sewer at 24.75%; hotel/motel fund at 15.82%; drainage fund at 25.85%. - Sales tax: after adjusting for an audit adjustment the prior year, the presenter said the first four months are trending about 12% higher than the same period last year (the presenter said the city smoothed an earlier audit adjustment so reported comparisons exclude one-time cycle effects). - Property tax collections: tax collections through Dec. 31 were reported at 75.12% of the roll, with the presenter noting several significant adjustments and refunds tied to homestead exemptions. - Investments and portfolio: the city’s investment portfolio was reported at about $388.9 million, earning 4.59% (the presenter noted benchmark market yield at about 4.2%). - Capital improvement program (CIP): staff reported a CIP total of $544.9 million at the reporting date, with approximately 6% of that amount completed and more projects expected to be added later in the fiscal year. - Hotel/motel fund and events: the iconic event was funded through the hotel/motel fund in this fiscal year, reducing net fund balance in the near term; additional event-related revenues and expenditures were noted as forthcoming. - Strategic Investment Zone: staff reported remaining available funds and one pending application (the presenter gave a pending-application amount in the workshop).

Near-term capital finance plans - Staff said the city is preparing for bond issuance in May (utility revenue bonds and possibly other issues). The presenter indicated that new issuances expected in May should increase the CIP total later in the fiscal year.

What the council did: the presentation was informational; council members asked clarifying questions about trends and timing but no formal budget actions or votes were taken during the workshop.

Note: staff described several timing and reporting adjustments (an audit adjustment from the prior year and smoothing) that affect year-over-year comparisons; the presenter said these adjustments will show in future monthly reports.