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City finance director reports general fund shortfall and upcoming changes to monthly reports
Summary
Finance staff reported the August fiscal update showing the general fund revenues at 15.6% of budget versus 16.67% of the year, a $377,000 shortfall to date; staff said a redesigned report will be presented next month and highlighted TIF payoff timing and bond balloon payments.
City finance staff presented the monthly financial update for the fiscal period ending August and advised the City Council that year-to-date figures show the general fund’s revenues lagging the seasonal budget pace.
According to Finance staff (Miss Swift), at 16.67% of the fiscal year elapsed, general fund revenues are at 15.6% and expenditures at 16.16%, resulting in an identified year-to-date shortfall of about $377,000. Staff presented sales tax, use tax and sector breakdowns; retail trade remains the largest sales-tax sector. Use-tax receipts for August trailed budget expectations and are difficult to partition by category without additional reporting, staff said.
Staff said they will present a redesigned, more graphical version of the monthly report in the next meeting and that the audit-and-finance committee had reviewed and liked the cleaner format. The presentation included comparative charts for sales tax by year, population-ranked comparisons with nearby cities, and a compound annual growth chart from 2005 to 2025.
On dedicated funds, staff reported the Municipal Public Works Authority (MPWA) fund revenues exceeded expenditures to date, and hotel-motel tax for August was a strong month (about $94,000). Staff also reviewed TIF (tax increment financing) status and said the TIF payoff is expected to occur in April (year not stated) and that when portions of bonds pay off, the city will reallocate debt service reserves to the next balloon payment as scheduled through 2034.
Finance staff and council discussed bond payment structure; staff explained the schedule of serial and balloon payments and that the city has no immediate plan to reallocate revenue until balloon payments are realized. Councilors asked whether the city had pre-allocated amounts for revenues that will be freed by TIF payoff; staff said allocations are not finalized and remain under review.
Ending: Council received the monthly update and requested the redesigned report next month; staff will continue to refine tax sector reporting and confirm timing and allocation options for post-TIF revenues.
