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Lakeway reports positive budget variance; FEMA reimbursement offsets sales-tax adjustment
Summary
Finance staff told council the city is roughly eight months through the fiscal year with a positive overall variance; a FEMA reimbursement helped offset a sales-tax remittance reversal tied to a comptroller audit.
City finance staff presented a June financial update to the Lakeway City Council on June 16 showing positive budget variances on both revenue and expenditure sides as of May numbers.
Finance Director Aaron told the council the city is eight months into the fiscal year and reported a positive revenue variance of approximately $480,000. The presentation noted two significant, unbudgeted items: a FEMA reimbursement of $1.388 million and a reduction of roughly $275,000 in sales-tax remittances after a Texas Comptroller audit determined a business had been incorrectly credited to Lakeway.
Staff said permit-fee collections lagged projections by about $528,000, which is the primary negative revenue pressure at present. On the expenditure side, payroll savings from vacancies accounted for roughly $500,000 of a reported $1 million favorable variance; overall the city reported a combined positive budget variance of approximately $1.53 million as of May.
Council members asked for departmental detail on variances; Aaron said the payroll savings were spread across departments and offered to provide department-level detail on request. The finance director also explained the decision to take the sales-tax remittance shortfall in one lump sum rather than amortize it across future payments.
Council discussion included questions about large account variances and whether any departments were out of line with expectations; staff said the variances are spread and offered to provide more granular detail.
No formal action was required or taken on the financial update; staff will continue monitoring permit activity and expenditures and report back in future financial updates.
