Finance director says FY25 second‑quarter revenues roughly on track; investment income well above expectations, water/sewer down as Coca‑Cola reduces operations

Director of Finance Charlene Nardi presented the city's FY25 second‑quarter financial report during the Feb. 20 council meeting, saying overall collections were close to the half‑year benchmark but that several lines diverged from projections.

Key points Nardi highlighted: - Overall general fund revenue collection at quarter‑end stood at roughly 47.6% of the revised budget, close to the typical midyear target around 50%. - Investment income: the city budgeted about $178,000 for interest on investments but had received about $1.5 million as of the second quarter. Nardi said that change stems from investment vehicles and higher interest rates and that the gain is a temporary boon that should be treated cautiously in multi‑year planning. - Hotel/motel receipts and some lodging/meals taxes showed softness compared with the prior year; adult marijuana excise revenue was up about 31% versus the same period a year earlier. - Building‑permit collections included a one‑time large permit (Smith College geothermal work) that boosts current year permit revenue but is not a recurring source. - Water and sewer enterprise receipts were down compared with the same period last year; Nardi and councilors traced most of that decline to markedly lower industrial usage by the Coca‑Cola bottling plant, which has repeatedly signaled a phased reduction or exit. The administration raised rates last year to account for the expected Coca‑Cola departure; Nardi said collections are currently tracking at about 56% for water/sewer enterprise funds.

Nardi told the council enterprise funds were generally tracking as expected but urged caution in projecting investment income into future budgets. "I'm pushing revenues where I think we can, but some of the things we are doing make me a little nervous," she said, noting that higher interest receipts this year reflect the current rate environment and available cash, not a permanent baseline.

Councilors pressed for follow‑up on several items: a clearer picture of expected free cash at fiscal year end; the timing of large permit receipts; details on the water/sewer rate model and how repeated messages from Coca‑Cola about leaving but not doing so would affect long‑term projections; and the consequences of relying on one‑time investment gains to balance multi‑year budgets.

Council President Alex Jarrah and others asked the finance director to provide updated projections and sensitivity scenarios at the next quarter briefing and requested water/sewer rate modeling with Director LaScaglia (DPW) present so the council can evaluate alternative paths if industrial usage continues to drop.