Finance director: third-quarter revenues broadly on track; parking, cannabis and investment income outperform

At the May 12 Northampton City Council Committee on Finance meeting, Director Charlene Nardi reported third-quarter 2025 revenues and expenditures for the city’s general and enterprise funds and said overall general fund revenues were “in sync with budget projections at 78.7%.”

Nardi told the committee the city has collected the bulk of motor-vehicle-excise revenue but remains about $666,000 short of the $2.9 million projection for the year; parking revenues are at roughly $1.4 million, up about $99,000 from the same point last year; and ambulance charges have reached $2.9 million, about 94.9% of that budget line. Cannabis receipts totaled $882,000 — roughly $220,000 more than the same time last year — and hotel-motel and meals taxes are also running ahead of last year’s pace in several categories.

Why it matters: the committee is preparing for the FY2026 budget hearings, and several revenue lines that are above projection will be treated differently depending on fund rules (for example, parking revenues above the budgeted amount are retained in the parking system for maintenance). Nardi also flagged both routine timing issues — many payments and payments-in-lieu-of-taxes are invoiced or received after the March 31 report date — and policy risks tied to investment income.

Key figures and trends reported - General fund revenues (as reported by Director Nardi) are tracking at about 78.7% of budget through the third quarter; excluding certain pass-through items the comparable rate was about 78.4%. - Motor vehicle excise: budget $2.9 million; collections about $2.2 million (77%); approximately $666,000 remaining to hit the projection. - Parking revenue: roughly $1.4 million in third-quarter collections, about $99,000 above the same period last year. Nardi reminded the committee that revenues above the budgeted amount are used to support the parking system’s maintenance and reserve. - Ambulance services: roughly $2.9 million collected, at about 94.9% of the budgeted amount with about $157,000 still to collect. - Cannabis revenue: $882,000 collected, about $220,000 more than at the same point in 2024; the projection for FY2026 was increased after an uptick late in 2024. - Interest on investments (miscellaneous category): reported at $2.1 million; the FY2026 projection for this line was increased substantially (Nardi reported a 1,065.62% increase to the projection) because the city has used a higher-yield secured overnight financing-rate account in recent years.

Nardi cautioned the committee about reliance on that investment vehicle. She said, “There is no guarantee that this type of account will always be available,” and noted that availability and yield depend on market conditions and bank offerings.

Expenditures, encumbrances and department notes Nardi reviewed departmental salary (PS) and ordinary maintenance (OM) lines and said many departments show lower percent-used figures because the printed report closed as of March 31 and payrolls/seasonal projects occur later in the fiscal year. She said enterprise funds are generally running ahead of budget expectations but that enterprise percentages often look low midyear because capital projects and seasonal operations carry over into the next fiscal year.

The committee discussed vacancies in the Department of Public Works. Nardi and several councilors noted longstanding recruitment challenges in DPW that have pushed the city to use contractors for some work. Nardi said the city had used contractors while recruitment continues and said discussions are ongoing between the mayor’s office and Director LaScalia about ways to fill positions.

The report also flagged a snow-and-ice deficit the finance director expects to cover at year end through transfers; Nardi told the committee the deficit was about $208,000 and would be addressed in the routine year-end transfer process.

Committee questions and context Councilor Moulton asked about the large projected increase in interest income and the risk of that revenue being reduced if the bank product is discontinued; Moulton said he viewed the city’s use of the product as a “comfortable calculated risk.” Councilors asked for clarifications about how capital and OM spending in DPW and enterprise funds are encumbered; Nardi explained many capital and seasonal projects begin in spring and finish in fall, which makes midyear percentages appear low.

What comes next The third-quarter report will inform the committee’s work in upcoming FY2026 budget hearings. Nardi reminded members that some revenues and reimbursements (for example, certain state “cherry sheet” payments and federal Medicaid-related school reimbursements) typically arrive later in the fiscal year, and the committee discussed follow-up questions to be asked at hearings and during the budget process.

Ending: The committee had no formal vote on the report; after discussion it moved on to procedural planning for the upcoming budget hearings and then adjourned.