Commerce City reports general fund on track at midyear; ARPA carryovers and large permit drive quarter-to-date variances

Theresa Wilson, Commerce City’s financial director, told the City Council the city’s general fund revenues and expenditures were generally tracking to budget through the second quarter of 2025, with several line items affected by one-time carryovers and a large building permit.

“Investment earnings are also budgeted in a conservative fashion and are trending higher than anticipated,” Wilson said in a presentation. She described the new quarterly reporting format and highlighted differences driven by an ARPA carryover and donations carryover that increased intergovernmental and miscellaneous revenues in the capital and operating funds.

Wilson said the audited 2024 beginning general fund balance carried into 2025 at roughly $107.9 million. After revenues and expenditures through June 30, the report showed an ending general fund balance of about $104.7 million and an unassigned ending fund balance of roughly $53.0 million once reserves were set aside; Wilson said recent budget amendments approved in August (after the June 30 snapshot) affect comparability with those numbers.

Key figures and context Wilson provided: - General fund revenues were at about 48% of budget at midyear; tax collections show a one‑month lag for sales and use tax receipts. - Licenses and permits were higher than budgeted because one large building permit was paid in the first quarter; Wilson identified that permit as an approximately $2.5 million item that increases building‑use tax in year‑to‑date figures. - Charges for services and investment earnings trended ahead of expectations in part because of timing and conservative budgeting. - Intergovernmental revenue rose in the quarter because staff recorded ARPA carryover approved by ordinance; Wilson said the ARPA entries would be fully reconciled in the third quarter.

On expenditures, Wilson said most departments were near 45–50% of budget at midyear. She said community development and finance appeared lower because they included ARPA funds that are carried forward and will be spent in later quarters; debt service appeared low due to payment timing and would normalize by year end.

Wilson flagged an error in one of the pie charts showing revenues and said staff would correct and reissue that graphic. She also noted the capital project fund showed higher spending through the second quarter because multiple CIP projects are active and the city made transfers into the capital fund from other funds (for example, conservation trust and drainage funds).

Council members asked detailed questions about specific lines, timing and budget amendments. Wilson identified two budget ordinances approved in August that change year‑end presentation though they post‑date the June 30 report: ordinance 26‑85 (transfer of $4.9 million into the capital expenditures fund for a police substation) and ordinance 26‑86 (approximately $2.8 million for a Civic Center remodel). She also said staff would follow up on chart corrections and provide suggestions to highlight items not trending to target.

Council members also asked about personnel costs, turn‑over and merit increases. Wilson said about 21 positions were added in 2024 and 18 in 2025 as authorized in the adopted budgets; merit increases are tied to a five‑point performance scale and she expected average merit increases in the neighborhood of 3% (staff to confirm exact figure).

On capital projects, Wilson said the city launched a CIP dashboard with GIS mapping so council and residents can review projects at the project level; staff offered to provide the link and to add more detailed project‑level reporting as requested.

Why it matters: the report provides a midyear fiscal snapshot that will guide budget amendments, capital project timing and longer‑term financial planning. Wilson said staff are underway on a 10‑year long‑term financial plan that will incorporate revenue and expenditure projections to inform future budget choices.

Sources and attribution: presentation and figures are from Theresa Wilson, financial director, with follow‑up answers from staff and input from council members during the Commerce City City Council study session.