Will Jones, controller's office, presented the quarterly financial report for the period ending Sept. 30, 2025, saying the controller's office projects a general‑fund ending balance of $303,400,000, equal to 11.9% of expenditures excluding debt service and pay‑as‑you‑go items. “Based on our current projections, the fund balance will be approximately $112,800,000 above the city's target,” Jones said.

Jones told the committee his projection is $70.1 million lower than the finance department's estimate because the controller's office is using a lower near‑term revenue projection. He said the office reduced its revenue estimate by $51.3 million compared with the August report, with property‑tax receipts lowered by $52.6 million to reflect the new adopted tax rate and transfers from other funds increased by $1.3 million to account for FEMA Category B reimbursements tied to derecho response.

On investments, Jones said the city had about $6.3 billion in its pooled investment fund as of Sept. 30, 2025, and that Fitch had assigned that pool a AAA rating. He said the pool's yield was 4.05% for the quarter and noted two small tax‑compliance pools totaling about $16 million. Jones also reviewed the city's interest‑rate swap positions and said the market value of the swaps stood negative $69 million as of Sept. 30, 2025.

Melissa Dabowski, director of the finance department, delivered the city's 3+9 forecast and described a slightly different view: the department's general‑fund revenue projection for FY26 is roughly $1.3 million higher than the adopted budget and the prior month, reflecting FEMA reimbursements and other transfers. Dabowski told the committee sales‑tax receipts for August were 1.44% lower than the same month last year and said the department would continue to monitor sales tax trends.

Dabowski said the finance department's expenditure projection for FY26 is $1.9 million above the adopted budget, driven mainly by additional security costs at library locations and an allocation to support the Freedman Town Visitor Center. As a result of the department's assumptions, its projection shows an ending general‑fund balance of $373.5 million, or 14.7% of estimated expenditures excluding debt service and PAYGO.

Council members pressed staff on timing: Dabowski said the controller's office's lower property‑tax projection will be reflected in the finance department's monthly report next month after the recently adopted tax rate is incorporated. Council members also asked about a longstanding civic‑art ordinance that dedicates 1.75% of vertical construction costs to art; Dabowski said the ordinance remains in place and that no ordinance change has been adopted.

On enterprise funds, staff reported only modest changes: the Dedicated Drainage and Street Renewal Fund was revised upward by $1.0 million because of higher pooled‑investment interest; central public‑health expenditures increased by $2.5 million for additional security services. Dabowski and Jones also briefed the committee on a set of airport special‑facilities items on the next council agenda, saying two bond items totaling roughly $400 million would finance a warehouse and catering facility at George Bush Airport and that the repayment source for those bonds would be United Airlines' lease payments, not airport general revenues.

The committee asked staff to return with finalized, reconciled numbers next month; both finance and the controller's office cited year‑end accounting adjustments that will be completed with the FY25 annual comprehensive financial report.