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City projects $135M in general fund revenue; sales tax running above budget through Q2
Summary
Finance staff presented second-quarter FY2025 results showing revenues above budget year to date, a forecasted $9.6 million favorable variance for the year and capital program activity across hundreds of projects; staff reported sales tax receipts outpacing budget and a modest personnel-cost lag of about $2.7 million.
Temple — Finance staff presented the city’s second-quarter financial report on May 15, saying revenues through March 31 outpaced expectations and projecting a positive year-end variance.
The presentation showed general fund revenues of roughly $79.8 million through March 31, about 60% of the roughly $132 million general fund budget, which staff said exceeded the 50% point in the fiscal year primarily because of the timing of property tax and other receipts. The water and sewer fund was at about 46% of its budget and the hotel–motel fund at roughly 28% of budget through the period reported.
Finance staff said sales tax collections were running about 103% of the adopted budget and that, on a year-over-year basis through April, Temple showed roughly a 7% increase compared with peers in the region. The finance forecast presented projected FY2025 general fund revenues at about $135 million and expenditures at about $132 million, producing a favorable variance (revenues over expenditures and other sources/uses) of roughly $9.6 million. Staff said some of the favorable variance reflects conservative budgeting combined with stronger-than-expected receipts.
Personnel costs were flagged as a source of variance: staff attributed approximately $2.7 million of the favorable expenditure variance to lag in filling certain positions. Departments with notable unfilled positions included parks and recreation, streets, fleet services and some new positions in finance and IT.
Investments and capital: staff reported the city’s investment portfolio at about $378.2 million, with funds largely in government pools and certificates of deposit; the city’s rolling three-month treasury benchmark was roughly 4.34% and the portfolio yield was in that range. The capital improvement program totals more than half a billion dollars and includes 419 projects; staff reported about 44% of CIP dollars are currently under construction.
Staff closed by noting the Strategic Investment Zone had approximately $2.5 million allocated, $1.95 million expended or encumbered, and about $541,000 remaining available.
Ending: Staff said the finance office will present final-year forecasts and recommended budget adjustments in upcoming council sessions; no formal council action was taken at the workshop.
