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Owensboro posts stronger-than-expected FY 2023-24 results; staff to file report for audit
Summary
City finance director reported higher-than-budgeted revenues and lower-than-budgeted expenditures for FY2023-24, driven by net profits, interest income and insurance premium fees; the commission voted to file the report for audit and discussed prospects for a bond rating upgrade tied to upcoming fire station projects.
Owensboro—s director of finance told the Board of Commissioners on Aug. 6 that the city closed fiscal year 2023-24 in a "financially and fiscally sound position," reporting revenue and expenditure variances that exceeded expectations.
Angela Wanninger, director of finance and support services, said monthly revenues for June totaled $12,324,977, slightly above the budgeted $12,219,005.43, a variance of $105,004.34. For the 12 months ended June, she said actual general fund revenues were $82,329,975 compared with budgeted revenues of $78,478,196, a variance of $3,851,779 driven primarily by higher net profits, increased interest income and higher insurance premium license fees. Wanninger told commissioners the city had record highs in major revenue categories this fiscal year.
On expenditures, Wanninger said actual spending for the 12 months ended June was $74,862,155 versus budgeted expenditures of $83,088,824, a variance of about $8.23 million. She said much of the difference reflects timing and transfers and carryover appropriations for projects that were not completed by June 30; the city intends to carry those unused appropriations into FY2024-25 through a budget amendment. She highlighted carryovers including a $2,400,000 contribution to OMU and $400,000 to the RiverPark Center and noted personnel savings of roughly $1,600,000 due to vacancies.
"This amendment accounts for projects in progress that were not finished by the end of the previous fiscal year on June 30," Wanninger said during the presentation.
Following the presentation, a commissioner moved to file the financial report for audit; the motion was seconded and carried by voice vote.
Commissioners also asked about the city—s bond rating. Wanninger said her view is that "we—re past due" for an upgrade because of improved debt service and a healthy fund balance. The city manager added that the administration plans to seek credit reviews when it issues bonds, expected next year as part of the Operation Firehouse program to rebuild Station 1 and Station 4, and estimated combined borrowing in the range of $15 million to $18 million for those projects. The manager said the city has had downgrades in prior years and has earned one upgrade since then, and officials will continue work with the rating agency.
The commission took no additional action beyond filing the report for audit. The city manager and finance staff said they are available to provide further detail to commissioners and to Moody—s during future reviews.
