Milton staff reports first-quarter 2025 finances show most funds near expected levels, property taxes lag

Interim Director Robec presented the City of Milton's first-quarter 2025 financial report at the council study session on Monday, saying most funds are tracking near the 25% baseline while a few revenue categories lag. "The baseline activity in the operations funds is 25% of budget amounts," Robec said.

The report matters because it sets expectations for council decisions on midyear adjustments and capital projects: revenues and expenditures that deviate from the 25% baseline can affect planned transfers and capital work later in the year. The presentation covered the general fund, utilities, capital funds and several special funds.

Robec told council that general fund revenues were 21.4% of budget at the end of the quarter, below the 25% baseline primarily because property-tax receipts have not yet been received; staff indicated property taxes received in April and May should bring that category in line with budget. Licenses and permits were higher than budget at 57.8% because of several large building-permit payments, and general fund expenditures were 24.8%. Robec said judicial expenditures were high (60.3%) after an annual invoice from the City of Puyallup for municipal court services was billed and paid earlier than in prior years. Other central services were elevated because of annual insurance, memberships and dues.

Across other funds, Robec reported: asset replacement revenues at 26.5%; street fund revenues at 24% and expenditures at 20.5%; criminal justice revenues at 25% and expenditures at 24.8%; and parks impact fee revenues lower than budget at 19.4% with time for additional receipts. Real-estate excise tax (REET) funds were reported below budget at about 10% but had grown to about $45,000 to date for each REET fund. The capital improvement fund included more than $2,000,000 in Transportation Improvement Board (TIB) grant revenues received for the SR 99/Porter Way project; larger capital expenditures to date included SR 99/Porter Way intersection improvements and a community park outdoor meeting venue. Utility funds were generally above prior-year receipts: electric fund revenues were 30.7% and expenditures 20.6%; water fund revenues 23.5% and expenditures 18.1%; stormwater revenues 26.6% and expenditures 18%.

Robec noted timing and classification issues that affect some percentages: some categories reflect annual payments (insurance, workers-comp retro fees) or clearing accounts where expenditures post later in the year. The finance department also said some vehicle-repair work orders remain to be calculated and entered, meaning vehicle-fund revenues should increase as those entries post.

Council members asked clarifying questions about which development projects produced the large permit payments (Robec said the payments were for a church development) and about the timing of property-tax receipts. No formal action was taken; the report was presented for council information and staff invited further questions.

Council engagement on the presentation was limited and the meeting moved on to a separate agenda item about a proposed franchise agreement. Staff indicated they would provide additional details if council requests them prior to the next meeting.