Stayton finance director: first-quarter revenue lag is timing issue; community center and facilities projects drive early expenditures

Finance Director James Brand presented the city’s first-quarter financial report on Nov. 3, saying the city is 12.5% through the biennium and that early revenue and expenditure variances are largely timing issues.

"At the 1 quarter mark, the city has reached, received just 5% of its budgeted revenues," Brand said, and he noted that the shortfall is driven mainly by tax revenues that arrive later in the fiscal year and by grant reimbursements not yet billed. On expenditures he reported a similar 5% level overall but called out higher early spending in the community center and facilities funds related to furniture, AV and a conference room remodel.

Brand said staff plan to add projection tools to monthly reporting so the city can produce fund-level projections for the biennium and better track one-time projects. He also said the city recently completed recruitment for a utility billing clerk and expects a hire after background checks.

On performance reporting, Brand noted the city’s budget book earned a Government Finance Officers Association award for the 10th consecutive year but that staff will strengthen key performance indicators and better tie council goals to spending in future budget documents.

Council questions focused on whether any immediate revenue or expenditure risks exist; Brand said he had "no major concerns" after reviewing department notes and that timing, not structural shortfalls, explains current variances.