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Finance staff gives preliminary FY25 year‑end budget update; general fund reserves projected near 25%
Summary
City finance staff told the Clearfield City Council the fiscal‑year‑to‑date numbers are preliminary, projecting general fund reserves near 25% of revenues and noting slower sales‑tax growth, a drop in energy‑use tax and lower building permit activity.
City finance staff provided a preliminary budget‑to‑actual update for fiscal year 2025 and told the Clearfield City Council final numbers will be set at the annual audit in December.
“It's not done yet. I've just cut a check for FY fiscal 25 yesterday,” the presenter said, warning that interest and some revenue items had not been fully booked. The presenter said the numbers shown to the council were still preliminary and likely to change before the audit.
On the general fund, the presenter reported the city budgeted to spend down about $1.6 million but currently shows a positive variance of about $2.0 million relative to budgeted figures after removing transfers for reporting simplicity. The presenter said the reserve metric stood at roughly 25% of revenues in the current figures, down from just under 30% in FY24; the presenter projected the auditor’s final numbers could alter that figure.
Staff described several revenue trends: sales tax growth slowed to about 2.7% year over year, compared with a 9.5% average increase from FY20–24. Energy‑use tax receipts fell about 7% from the prior year, a change staff associated in part with natural‑gas rate reductions by Enbridge in August 2024, while Rocky Mountain Power increased rates. Building‑permit revenues and plan‑check fees were below budget and down from prior years; county data cited in the meeting showed a notable year‑over‑year decline in dwelling‑unit permits in Davis County through May 2025. Fines and forfeitures have increased for four consecutive years and exceeded budget.
On expenditures, staff said overall spending across funds was at about 65% of budget at the reporting point, noting that much capital spending is rolled into the next fiscal year. Part‑time personnel costs were underspent (the presenter said roughly 19% of budgeted part‑time wages were not spent), and insurance costs were higher than budgeted because of a required prepayment that affected timing rather than cash availability.
Staff also noted the Aquatic and Fitness Center experienced a planned closure during the season that reduced revenues; that program remains partially supported by government funds, and staff described the center’s net position as tracking below budgeted subsidy levels because of the closure.
Council members asked follow‑up questions about local median income trends and broader economic forces; the presenter said Clearfield‑specific median‑income figures were not available in the meeting and offered to research the connection between tariffs and county taxable‑sales contraction for a future report.
Why this matters: the update flags revenue and permit trends that could affect the city’s capacity to fund capital projects and services in upcoming budgets, and it informs council decisions about reserve targets and program subsidies.
