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Finance director outlines FY2024 year-end results and FY2025 outlook; general fund shows modest deficit trend
Summary
City staff reported FY2024 revenues of roughly $40 million across all funds with a small general fund deficit; FY2025 to-date revenue is ahead but property tax assessed value growth fell short of budget assumptions.
The Lebanon City Council received a fiscal report on Jan. 8 covering fiscal year 2024 results and an early outlook for fiscal year 2025.
Brandon (Finance Director) told the council fiscal year 2024 (ended June 30, 2024) produced about $40 million in revenue across all funds and just over $37 million in expenditures across funds; the city’s three utility funds (water, sewer, storm drainage) added a combined approximately $2.2 million to fund balances. The general fund, however, ran a modest deficit: staff reported roughly $11.7 million in general fund revenue against about $11.8 million in expenditures, producing a deficit that was slightly larger than the prior year ($120,000 deficit in 2024 versus about $103,000 in 2023).
Looking at fiscal year 2025 through November, staff reported $16.4 million in revenue to date and just under $13 million in expenditures to date across funds. The finance director noted several revenue drivers and risks: utility charges are ahead of budget (noting increased water revenue and bulk water sales), interest earnings were materially higher than budgeted in 2024 due to rising rates but are starting to fall as pooled investment rates decline, and assessed value growth came in at approximately 2.7% versus the 4% assumption used in the adopted budget. The report flagged a projected decline in five-year ending general fund balances of about $300,000 tied to the lower property tax growth.
Staff said they will proceed with the planned budget schedule: department year-end projections through January, budget requests and committee review in April, and council adoption in June. The finance director said staff may update revenue forecasts for the five-year plan as more data becomes available.
