Finance director: revenues uneven, storm costs and litigation tighten budget picture

Alan Nizman, the city’s finance director, told the council the city’s fiscal year‑to‑date revenues and expenditures reflect seasonal timing for property taxes, business licenses and franchise payments and remain below an even‑year baseline. ‘‘Revenues are not collected evenly over a fiscal year,’’ Nizman said, noting property taxes concentrate in December through February and franchise fees and business licenses fall later in the fiscal year. Nizman reported the general fund was at about 47% of budget as of Jan. 31, 2025, and cited year‑to‑date variances: building permit receipts rose by $255,000 from the previous year (driven by multifamily construction) and interest revenue had exceeded budgeted amounts because of higher rates, although rates were expected to decline through 2025. On expenditures, Nizman said recurring costs (payroll and debt service) drive a steadier pace while disaster‑related personnel calls and a January GO bond debt payment increased early‑year outlays; those GO bonds were paid in January and related storm expenses are expected to generate FEMA reimbursement. He also told council that the stormwater fund was at 41.7% of revenue with expenditures at 52.8% and cautioned the council that stormwater fees ‘‘may need to be increased over a period of time’’ because the operating side was roughly breaking even and bond debt needs coverage. Council members pressed whether FEMA reimbursements and grant closeouts were expected this fiscal year; Nizman said he expected the fire grants and FEMA reimbursements to be recovered within the fiscal year, which would ease the short‑term pressures. Separately, City Manager Scott and council members raised a related budget issue: nearly $4 million in TIF funds were tied to the long‑deferred Parallel Road project, which Scott said may not be built within 10–20 years at the previously estimated cost. ‘‘That project will be much, much more expensive than that,’’ Scott warned, and suggested council consider reallocating tied‑up TIF funds to nearer‑term capital needs. Ending: Staff told council they will incorporate retreat priorities into the FY26 budget process, flagging stormwater fee structure, debt service payments and the TIF‑funded Parallel Road as items to weigh in the coming months.