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Finance director reports 2024 fiscal year ended with stronger-than-budgeted fund balances; sales tax decline noted
Summary
Finance Director Paula Painter told council the general fund ended 2024 with about $9.5 million growth in ending fund balance driven by revenues over budget (sales tax, B&O, interest) and expenditures under budget; staff cautioned some items (sales tax) are not expected to be recurring.
The council workshop on May 20 received the finance director’s review of fiscal year 2024, which showed a roughly $9.5 million increase in the general fund ending balance compared with expectations for the year.
Paula Painter, finance director, said general fund tax revenues finished only about 0.15% higher than 2023 but above the conservative budget; sales tax was about 4.5% lower than 2023 but finished $1.7 million above the conservative budget estimate. Business-and-occupation (B&O) tax and interest income also exceeded budget, with interest notably $2.6 million above budget due in part to fair market value adjustments and a prior-period correcting entry.
Painter highlighted that expenses were under budget across salaries and benefits (vacant positions) and contracts, producing about $4 million in expenditure savings. She cautioned that some revenue items are irregular: a $421,000 invoice credited to fines and forfeitures was subsequently reversed and is not ongoing revenue, and REET (real estate excise tax) remains volatile but rebounded in 2024 to $7.3 million.
Other funds showed expected variability: fines and forfeitures rose due to more red-light-camera revenue; Showare Center grant timing affected governmental revenue recognition; and utility taxes overall rose but cable franchise and telephone were down. Deputy Finance Director Michelle Ferguson presented the April 2025 monthly report, noting early-year trends include slight sales-tax declines and higher electric/gas utility tax receipts following rate changes.
Council members commended the finance team for conservative budgeting and oversight. Questions covered how fiber deployments will be treated for franchise or utility taxes and whether citation revenue is a revenue-generator; the city CAO noted municipal court collections are low and that citations do not reliably generate revenue.
