Georgetown finance staff reports solid first‑quarter revenues; clarifies impact‑fee accounting

City finance staff presented the fiscal year 2025 first‑quarter budget report at a council workshop, reporting higher year‑over‑year revenues in several areas and clarifying how the city accounts for impact fees.

First‑quarter highlights: Budget manager Maury Cantu told the council the general fund’s amended revenue budget is roughly $110.9 million and first‑quarter revenues were about 24.8% of budget — within typical timing expectations. Sales tax accrual timing creates a lag in reported quarterly numbers, but staff said sales taxes were up roughly 7–8% year‑over‑year in the reported period and that total reported sales tax collections for the prior year were about $50.5 million. Staff also reported increases in permits (about 11% over Q1 2024), growth in fire/EMS revenue (about 19% vs. prior year) and higher investment income noted as a substantial year‑over‑year increase in the ACFR presentation.

Electric and water funds: The electric fund’s operating revenue was running around 20% of budget for the quarter, with timing effects related to the ramp‑up of very large electric customers; purchase power is a major line item (about 47% of the electric expense budget). The water fund’s revenues are also tracking in expected seasonal patterns and reflected two rate increases from the prior year; nonoperating transfers that use impact‑fee proceeds were modest in Q1 but expected to be used later for capital projects.

Impact‑fee accounting clarified: Council members asked whether impact fees are commingled with general fund revenue. Staff clarified that impact fees are deposited into a separate impact‑fee fund (fund 41602) and are used only to pay eligible capital projects; the fees are not moved into the city’s general operating fund without an appropriation for an identified CIP project. Staff said transfer‑ins from the impact‑fee fund to project funds are recorded as nonoperating revenue when the project uses the fees. The clarification was made in the context of recent attention at the state level to municipal use of impact fees.

Capital project timing and encumbrances: Staff noted several capital encumbrances carried forward (including a large roll forward for a package plant) and said nonoperating spending as a percent of the water fund budget is elevated this quarter because CIP projects are progressing. City staff also said they would provide council members with more granular lists showing how impact‑fee receipts have been spent or committed over the prior year.

No formal action: The council received the report and asked several follow‑up data requests for the budget process; no formal vote was taken.

Ending: Staff said it will continue to monitor collections and provide more detailed updates in subsequent quarterly budget reports as the city moves through the fiscal year.