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City finance director reports stronger-than-expected 2024 revenues; general fund balance increases
Summary
Director Chambers told council that the city ended 2024 with general fund revenues modestly above budget, driven by stronger development revenue and higher investment interest; overall fund balances increased and staff plans to present a sustainability model update to the council.
Newcastle Finance Director Chambers told the City Council on Feb. 18 that the city closed 2024 with revenues modestly ahead of budget and several funds underspent, resulting in an increase in year-end fund balances.
Key figures and drivers Chambers said general fund revenues finished the year a little more than $200,000 over budget, driven primarily by development revenue that came in roughly $300,000 above budget and stronger investment interest. She said the city reconciled interfund service charges at year-end, which reduced the miscellaneous revenue line compared with earlier quarters. Director Chambers: “Development revenue came in really strong. We had almost $300,000 over budget … Investment interest came in over $125,000 over what we budgeted.”
Expenditures and fund balance All departments ended the year under budget; general fund expenditures were about $1.2 million under budget overall, in part because of unfilled positions and intentional spending restraint. Chambers said the city’s total ending fund balance across all funds was just over $22 million in cash and investments; the general fund ending balance (all classifications) was just over $7.5 million, with a portion described as unassigned.
Streets fund and other items Staff reported the street fund ended the year roughly $33,000 under budget after more timely invoice processing and transfers from cumulative reserves as needed. Chambers said staff will pursue a longer-term investment portfolio to lock in current yields and will present a refined sustainability model for the council’s review.
Next steps Chambers said the finance department will share the updated sustainability model and the 2024 actuals with council, to be discussed at an upcoming finance committee meeting and available for council review in early March. A housekeeping budget amendment for February will reflect the 2024 actuals and minor adjustments.
Ending note Council thanked staff for the work; Chambers said the additional fund balance will carry into 2025 and staff will propose options for how to use the increased reserve in the near term.
