City reports $1.5 million general-fund surplus in preliminary 2024 results; TID and impact-fee updates noted

Finance staff presented the city's preliminary 2024 financial results to the Finance Committee, reporting an estimated $1.5 million surplus in the general fund and a mix of surpluses and deficits across other funds.

The preliminary numbers show most departments operating within budget, higher-than-expected investment earnings and ambulance revenue, and several capital and TID items that will require ongoing monitoring. Staff emphasized the figures were preliminary pending final journal entries from auditors.

Why it matters

Preliminary year-end results inform budget planning and capital decisions. The committee flagged items that will affect 2025 budgeting, including debt-service needs related to 2023'24 bond issuances and the timing of major projects that delayed expected permit and impact-fee revenue.

Key figures and highlights

- General fund: an approximate $1.5 million surplus, partially driven by an unspent $2.5 million contingency.

- Debt service: a roughly $300,000 deficit tied to principal and interest on 2023 and 2024 bonds; 2025 levy increases were noted to address some debt-service needs.

- TIDs and development fund: TID activity produced roughly a $3 million surplus (subject to assessment guarantees); the development fund showed about a $2 million deficit, tied to impact-fee draws for projects including the water tower.

- Non-governmental/capital funds: roughly a $4.5 million deficit largely reflecting capital spending.

- Fund balance and revenues: total reported fund balance approximately $59 million. Ambulance revenue rose about $150,000; investment earnings were nearly $200,000 above budget.

- Solid waste: the solid-waste fund saw an overage (about $164,000) after a $20-per-unit fee increase implemented in 2024; staff said they could keep fees flat for 2025 given the fund balance.

- Room tax and tourism: staff moved to a 70/30 split (70% to room-tax/tourism fund; 30% stays in the general fund) to give Engage Franklin more-consistent quarterly revenue for obligations such as stadium naming-rights invoices.

Impact fees and select projects

- Water tower: the city anticipates a roughly $9 million water-tower project; staff noted they plan to allocate about 51% of that cost to water impact fees as invoices are received.

- Impact-fee refund: Staff processed a refund to Seasons at Franklin of roughly $130,000 after records showed the developer met prior timing conditions connected to earlier permit-rate rules.

- Elm Road and other projects: Elm Road (TID 8) and other capital projects were discussed as potential candidates for transportation-impact fee support; staff has engaged a consultant (Root Group / Rupert Milke) for a comprehensive impact-fee review budgeted for 2025.

Administration and next steps

Staff said the auditors were expected to finish journal entries and final review by June 30; the TID annual report is due to the Department of Revenue on July 1, and staff will bring a TID report to the committee at its next meeting. Committee members asked for follow-up on capital encumbrances and timing of invoices for major projects.

Ending

Committee members did not direct immediate policy changes; staff will return with finalized audit entries, the TID report for council review, and any recommended budget amendments at future meetings.