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Smithville finance director reports healthy general fund and one-time savings as some projects shift to 2025
Summary
Finance staff presented unaudited FY24 year-end results showing higher-than-expected interest earnings (~$700,000), double-digit sales and use tax gains, and deferred capital projects that created temporary fund savings; staff cautioned revenues may normalize next year.
The city's finance director presented unaudited year-end results for fiscal 2024 and highlighted stronger-than-anticipated revenue performance and deferred capital spending that improved fund balances.
Rick (finance) said interest earnings were a positive surprise at roughly $700,000 on an original budget base of about $2.94 million, but he cautioned earnings may decline with anticipated federal rate cuts. He reported property tax receipts of about $1,175,000 (roughly a 5.2% increase), city sales tax growth near 11% year-over-year and a use-tax increase of about 19%, which staff attributed in part to increased package deliveries and online purchases.
Several capital projects (commercial sidewalks, streetscape phase 3, neighborhood park signage and several water projects) were pushed into 2025, creating temporary savings in multiple funds; staff said those costs will resume when projects restart and reserves remain healthy. The finance director outlined plans to manage the vehicle and equipment replacement fund by increasing interfund payments and selectively delaying renewals where practical.
Board members asked whether use-tax trends were widespread; staff said both sides of the state line have seen positive results. No formal decisions were required; staff will return as projects move toward active procurement and to present final audited results once the auditors complete work in early 2025.
