Finance presents FY2025 year-end report showing revenues roughly in line with projections; expenses exceeded budget by $9.7 million

Finance staff briefed the Urban Economic Development Committee on the city’s fiscal-year-end (June 30, 2025) results and said a quarterly reporting cadence will follow.

Jared, presenting fiscal figures, said the city’s pre-audited FY25 numbers show revenues of about $401.9 million and total outlays of about $411.6 million, which amounted to the city exceeding its revenue projections by roughly $9.7 million when comparing current revenues to original budgets. Jared said revenue exceeded original projections by about $8.2 million (2.1 percent) but that expenses also exceeded original budgeted amounts. He reported sales tax finished the year below projection while use tax and hotel-motel tax outperformed projections; franchise taxes underperformed the original estimate.

Jared explained the FY25 close left an available balance of approximately $11.1 million at year-end, but noted some of that relates to accounting allocations between enterprise and service departments and previously appropriated end-of-year salary adjustments. On a more conservative basis, he said about $5.3 million represented funds that were truly unspent at year end (about 1.2 percent of the annual budget).

Committee members asked for more district-level and month-by-month breakdowns of sales and use tax performance; Jared and staff said future quarterly packages will add context and that the adopted FY26 budget already used slightly reduced sales-tax assumptions to reflect late-year softness. Members also requested clearer charts and district breakdowns for citizen-facing materials. No formal action was taken during the briefing; staff said quarterly reports will return to the committee.