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Boerne reports FY2025 Q1 finances on track; equipment purchases come in under approved LOC
Summary
City staff told council revenues are tracking budget for the quarter ended Dec. 31, 2024. An equipment line of credit approved for $3,175,000 yielded actual equipment purchases of $2,740,703; the city extended the payment term on certain meters to 10 years to align with asset life.
The Boerne City Council on Feb. 11 received the first-quarter financial and investment report for fiscal year 2025, covering the period ended Dec. 31, 2024. Finance Director Sarah Buckalew told council that sales tax and ad valorem revenues are meeting budget expectations and that overall revenues and expenses across governmental and utility funds are in line with projections.
"I'm happy to report on, high level revenues are on track," Buckalew said, noting the budget projected 225 basis points for interest revenue and that actual figures so far align with expectations. She reported sales tax growth and that permit revenue through December was 33% of budget compared with 15% a year earlier, attributing stronger permit revenue to residential new starts.
Buckalew briefed the council on an equipment line of credit the council previously approved for up to $3,175,000 to fund fleet and meter purchases. The final cost for the equipment purchased was $2,740,703, below the approved authorization. For Encore meters, staff extended the lease term from the estimated five years to 10 years to match the meters' expected asset life and to comply with the city's financial management policy of aligning debt terms with asset life.
Council members asked whether smaller vehicles such as dump trucks would continue to be amortized over shorter terms; Buckalew said smaller vehicles (for example, a $150,000 dump truck) would likely use a three-year term when cash flow and asset life make that appropriate.
The council voted 5-0 to receive and approve the first-quarter financial and investment report. Staff said they will continue to monitor interest-rate signals from the Federal Reserve and report changes that affect revenue projections.
