Finance director reports timing-driven variances; capital carryovers leave 2025 capital fund deficit on paper

Laurie Obermiller, director of finance, presented the city—s first-quarter financial analysis through Sept. 30, 2024, reporting a mix of timing-related variances and project carryovers that affected year-to-date comparisons.

Obermiller said general-fund revenues are about $233,000 above last year at the same point, while sales tax receipts appear down roughly $138,000—staff attributed much of that shortfall to timing (some large payers report with a lag) and said they expected October receipts to narrow the gap. Intergovernmental revenue rose by about $67,000 due to opioid-settlement distributions and license-and-permit revenue increased about $136,000 (including site-improvement permit revenue tied to a local development project). Interest revenue also improved compared with last year.

On the expenditure side, general-fund outlays were roughly $800,000 higher than the prior year at the same point, driven by a roughly 7% salary increase effective July 1, purchases of police vehicles earlier in the fiscal year, and pension costs tied to a transition to a new plan. The municipal enterprise fund (golf and ice operations) showed modest net increases in revenues and expenditures, and the capital fund showed a reported deficit driven primarily by the timing of carryover capital projects: Obermiller listed about $1.7 million carried for the ice-rink switchover, $1.6 million for concrete replacement, $520,000 for a new ballast road/sidewalk project and $380,000 for public-works equipment. Those carryovers increased reported expenditures while also increasing beginning fund balances, staff said.

Obermiller said the initially budgeted capital-fund surplus was $522,000, but accounting for rollovers the apparent deficit for 2025 is approximately $3.9 million; staff emphasized that the carryovers represent previously appropriated funds and that the overall capital fund remains within the council—s adopted budget framework. The quarter closed with a reported general-fund surplus of approximately $914,000 and a current deficit (timing-related) of about $238,000, which staff described as within budget tolerances.

Council members asked for more granular sales-tax reporting to understand specific retail impacts (for example, the effect of new restaurants such as Chick-fil-A) and whether marijuana-related receipts are included in the sales-tax figures. Obermiller said she would reconcile October receipts and provide more detailed line-item attribution where available.

No formal action was required; staff said they would continue monitoring receipts and present updates as part of regular quarterly reporting.