City reports positive third‑quarter finances; capital projects and grant reimbursements to carry into next fiscal year

Administrative Services Director Ms. Harris presented the city’s fiscal health update for the third quarter of fiscal year 2025. The report showed general fund revenues exceeding expenditures by about $1.39 million at quarter close, driven in part by sales and use tax collections and unexpectedly strong pari‑mutuel commission receipts. Harris cautioned that timing and carryovers drive quarter‑end balances: several capital projects remain underspent and reimbursements were received this year for invoices outstanding at the FY2024 close.

Staff highlighted several points: the general fund remains the city’s primary operating fund with a FY2025 appropriation of roughly $13.7 million; capital budgets total about $18 million with roughly 64% supported by grants; airport, water, sewer and sanitation enterprise funds show positive year‑to‑date balances with the exception of an air‑service fund shortfall that will be offset with previously approved economic development transfers; and $698,000 in the Willow Creek Safe Routes project and an airport HVAC project remain as carryover items.

Harris told council the city budgeted a cash transfer for operations and capital in FY2025, and while staff expect to transfer less than the originally budgeted amounts, the final numbers will be determined after year‑end close. Council received the report and asked that staff continue to reconcile capital reimbursements and present final carryover amounts during the May budget work session.