Committee endorses adding quarterly budget variance reports to council agenda

The Finance, Utilities, Rules and Rules Committee on Feb. 3 recommended that the Carmel Common Council adopt an ordinance (D-2755-25) to add the finance department’s quarterly budget reports to the council agenda. The intent is to provide concise written quarterly summaries showing variances and commitments rather than lengthy presentations at council meetings.

Council President Austin — who briefly stepped out during the committee — told members the quarterly report idea grew from a desire to see emerging budget items ahead of time rather than being told after the fact. "A quarterly budget report...was an idea that I had," Austin said, describing the report as a short written briefing the council is expected to read so members can ask questions without a long in-person presentation.

Zach, the controller, described the quarterly product as a variance-focused report that will add context to raw spend numbers by comparing actual spending to monthly and annual targets. "If you've spent 20% of your budget by this point in the year, you don't know without the context whether that's good or bad," Zach said; the variance report will show whether spending to date is on track relative to expected monthly pacing and department-specific factors.

Zach walked the committee through a surplus statement and fiscal-year reconciliations prepared for 2023–2025. He reported the 2024 general fund revenue totaled about $139 million and that departments collectively reverted approximately $7.2 million of appropriations, producing a structural surplus. Based on the adopted 2025 budget and current forecasts, Zach said the city projected a $3.3 million operating surplus for 2025, acknowledging that pending supplemental appropriations could reduce that figure.

Committee members asked for specific items to be included in the quarterly report: monthly targets and variances, encumbrance lines and draw-downs, department-level flags for large upcoming expenditures, and clearer timing for the January report (the controller recommended allowing the second meeting in January for year-end reconciliation). Councilor Lock and others requested the quarterly package include the encumbrance list and a P&L-style management summary for departments where useful.

The committee moved and seconded a positive recommendation for Ordinance D-2755-25; the motion carried. Zach said he will circulate the draft report and work with councilors to refine scope and presentation before the first quarterly filing.

Ending: The ordinance was sent to the Common Council with a positive recommendation and will appear on the council docket for final action.