Englewood reports $4 million operating surplus, sales tax flat through July

Director of Finance Kevin Ingalls told the Englewood City Council on Sept. 2 that as of the July monthly financial report the city was about 58% through the fiscal year and revenues were “tracking a little higher” than budget, about 63.4% of budgeted revenue. “Overall, our revenues are tracking a little higher than that, about 63.4,” Ingalls said, noting revenues were about $1.4 million higher than the prior year and that the city’s operating surplus stood at roughly $4 million through July.

The July report showed sales and use tax collections roughly flat year over year, Ingalls said, with the use tax down partly because 2024 included a roughly $600,000 one-time audit collection. “The use tax, yes, it is down,” Ingalls said, adding that last year’s audit payment created an anomaly. He also pointed to a large single permit—Craig Hospital—that drove an increase in licenses and permits receipts for the month.

Why it matters: the report is the council’s periodic check on revenue and spending trends that underlie budget decisions. Ingalls said departments are largely within budget and that overall expenditures were about 3% higher than last year—primarily inflation-driven increases in personnel and contractual costs—and that the city’s fund balance was about $20.5 million through July. “As far as our operating surplus or deficit, we’re running at about a $4,000,000 surplus right now,” he said.

Council questions and follow-up: council members asked staff for more granular reporting on sales and use tax sources. Council Member Wright asked why areas labeled “7” and “14” (spreadsheet groupings used by staff) were being counted in the city’s business open/close totals when those businesses do not have a physical presence in city limits. Ingalls explained that those are registered businesses that report sales taxes to the city even without a brick‑and‑mortar location. Wright asked staff to present year‑to‑date open and closed counts separated into (1) businesses within city limits and (2) registered businesses outside the city so the summary more clearly shows local openings and closings.

Other council questions covered IT spending timing—Ingalls noted IT pays some contracts early in the year so that department’s year‑to‑date percent can run higher early—and the city’s updated 2025 revenue estimates. Ingalls said staff increased the 2025 estimates based on through‑July performance and planned to provide further detail to council in two weeks in advance of a public hearing.

Ending note: Ingalls said unrestricted reserves through July were about $11.8 million and an unassigned fund balance of about $6.2 million, and he offered to provide council the requested breakdown of local vs. nonlocal registered businesses in the next report. “I’ll be glad to answer any questions,” Ingalls said when he concluded the presentation.