Council receives second‑quarter financial report showing revenues above expectations but sales tax lagging budget
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Summary
City finance staff told the council the general fund is on track overall for the first six months of fiscal 2025, with property tax collections near budget and sales tax up over last year but trailing the adopted budget; council approved placing the report off the consent agenda for discussion and then accepted the report.
City finance staff presented the second‑quarter financial report for fiscal year 2025 (Oct. 1, 2024–March 31, 2025) and the Waxahachie City Council accepted the report during the May 20 meeting after a brief discussion.
Finance Director Chad summarized the report, saying overall revenues were performing better than expected and that expenses through the second quarter were in line with budget. He said property tax is the city’s largest revenue source (roughly 40% of the general fund) and that the city had collected about 98% of budgeted property tax revenue for the period.
Chad said sales tax — the city’s second‑largest revenue source at about 36% of the general fund — was running about 2% higher than the prior year but was below the budgeted projection (the budget assumed roughly a 4% increase over the prior year). “So far, what we’re seeing is about a 2% collection rate over the prior years,” he said, and noted softening in retail and wholesale supply sectors through February.
The finance presentation included these specifics: general‑fund expenditures through the second quarter were $35,100,000 (about 49% of budget); building‑permit activity remained strong; miscellaneous revenue was up, largely because of higher interest income and unbudgeted auction proceeds and rebate revenues; and some encumbered funds had not yet been expended and did not appear in the report.
Council members emphasized the implications for the upcoming budget process. One council member noted that a 2% shortfall in sales tax collections would equate to roughly $300,000 in the general fund and about $90,000–$100,000 for the Waxahachie Community Development Corporation (WCDC), figures Chad confirmed. Council directed staff to consider those trends as budget work begins in the coming months.
After discussion the council formally approved the consent‑agenda item to receive the second‑quarter financial report.
