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City report: revenues above budget targets; utilities and meter replacement update
Summary
City finance staff reported third-quarter revenues exceeding budget projections in key areas, sales tax and industrial district receipts were strong, grants covered two garbage trucks, and the utilities department reported progress replacing aging meters.
City finance staff told the council on July 21 that general fund revenues through the third quarter are above budget expectations in several categories, and staff outlined expenditure items and operating trends for utilities.
Finance Director James (identified in the meeting) said property tax receipts are at about 94 percent of budget for the fiscal year to date and sales tax receipts are at 84 percent, above the 75 percent benchmark for the third quarter. James also noted a roughly $3.9 million industrial district payment received in June that is remitted twice a year (December and June).
The report showed grant receipts that included approximately $160,000 tied to state reimbursements for compressed natural gas (CNG) systems related to the purchase or decommissioning of two garbage trucks. James said miscellaneous auction revenue and an insurance recovery of about $27,000 contributed to miscellaneous revenue increases.
Payroll and overtime were discussed. James said payroll expenses are generally in line with budget expectations but noted second-quarter overtime was higher in part because of seasonal events such as the Festival of Lights. The payroll report runs on a continuous system and includes an initial pay period for the new fiscal quarter, he said.
On utilities, James reported water consumption was down slightly but revenues were up compared with last year, in part due to last year’s rate increase. The utilities team is finishing a long-running meter-replacement project: James reported the city received 150 of the remaining 5/8-inch meters and expects to finish replacing the remaining Hershey meters, though the city continues to average about 50 meter failures per month and budgets roughly $100,000 annually for meter replacements and repairs.
James also reported that the city’s TexStar (short-term investment) balance declined as bond-funded park and animal-facility work moved forward.
Council members asked questions about the hotel/motel (occupancy) receipts, and James said motel collections typically lag by about two months. Council also discussed rebate arrangements tied to economic-development agreements: staff described rebate agreements with a Marriott hotel development and a Staybridge project tied to redevelopment and conference-hotel requirements; those rebate arrangements were previously approved by council and were reflected in the hotel-receipts report.
No formal action was taken on the finance report; staff provided the council with the quarterly financial packet and will return with budget workshop follow-up items on a future agenda.
