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Cedar Park Type B reports stronger-than-expected sales-tax receipts through second quarter; budget remains conservative
Summary
Type B staff reported on May 13 that fiscal-year 2025 sales-tax receipts were above year-to-date budget projections through both first and second quarters, while project and debt spending tracked to budget timing.
Erica Solis, a finance department presenter, told the Cedar Park Type B board on May 13 that the corporation’s fiscal 2025 revenue budget is $11,500,000 and the expense budget is $13,700,000, primarily for projects approved during the budget process.
"Our fiscal year 20 25 revenue budget is $11,500,000, mostly comprised of sales tax collections," Solis said. She reported sales-tax collections of $3,200,000 through Dec. 31 (end of first quarter), which she said was 8.7% over year-to-date budget projections. Solis said the Q1 increase was "primarily driven by a one-time audit adjustment that we received in December."
For the second quarter, Solis reported cumulative sales-tax collections of $6,100,000 through March, about 7% over year-to-date budget projections. The department is awaiting a detailed file from the state comptroller to better understand drivers of the increase; Solis said staff are monitoring trends and noted the city kept sales-tax assumptions flat in the FY25 budget.
Solis summarized longer-term collections, saying "since the fund's inception through the end of the first quarter, we've collected $128,100,000 in sales tax" and that the Q2 figure brought that total to about $131,000,000. On the expense side, Solis said board and staff support expenses are transferred quarterly to the general fund for reimbursement, transformational project transfers included a final payment tied to an agreement (Solis referenced a $1,700,000 payment), and debt-service timing explained why interest expenses first appeared in Q2 (a February interest payment recorded approximately $176,000).
Board members asked clarifying questions about year-over-year deltas, audit adjustments and how conservative assumptions will feed into FY26 projections. Solis said staff expected to receive one more month of sales-tax receipts before finalizing FY25 and beginning work on FY26 assumptions.
No formal board action was taken on the financial update.
