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Montgomery finance staff: city projects to finish year with modest revenue gain and stronger reserves
Summary
City finance presenter told the council that sales and use tax and lodging tax are up year over year, gasoline and alcohol taxes dipped, and overall revenues are projected about 1% above budget while expenditures are expected to be below budget, increasing the city's fund balance.
A staff member delivering the City of Montgomery's financial update told the City Council that the city's total revenues are projected to finish the fiscal year roughly 1% above budget, or nearly $2.3 million more, while expenditures are tracking about $2.8 million below budget.
The presenter said sales and use tax collections have grown nearly 5% compared with the same period last fiscal year and are about 2% above April, although that growth is roughly 0.5 percentage point below the current budget assumption. Lodging-tax collections were lower in May compared with an April reporting anomaly but remain about 5% year‑over‑year and 7% above the same period in FY2024 when reporting quirks are accounted for. Gasoline-tax revenue has rebounded but is roughly $72,141 lower than the same period in FY2024. Alcohol-beverage tax revenue has slipped about 10% compared with the same period last year but is roughly 5% better than February's level.
Based on collections through May, the presenter projected the city will close the books with a net increase in fund balance reserves of at least $1.5 million after covering internal service fund shortfalls and other adjustments. The presenter also said a $2.2 million reduction is available to cover potential internal-service deficits.
The update included operational reminders and event notices but the financial figures listed above were the substantive items presented to the council. The presenter concluded by reminding residents that city offices will be closed on Thursday, June 19 in observance of Juneteenth.
The council did not take separate formal action on the financial projection during this portion of the meeting; the numbers were presented for the council's information.
