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Madera finance director: FY24–25 closed with positive unaudited balance; Q1 shows timing differences
Summary
Director of Financial Services Mike Lima reported FY24–25 unaudited results showing higher revenue than budgeted and lower expenses largely from timing and salary savings. Council was briefed on quarter‑1 variances, sales‑tax patterns, airport fund status and a preliminary runway reconstruction estimate of about $5.8 million.
Director of Financial Services Mike Lima presented a multi‑layer budget update covering audited work in progress, FY24–25 unaudited results and quarter‑1 (July–September) performance.
Lima said the city’s five major general fund revenue sources (sales tax, property tax in lieu of VLF, property tax, permit fees and transient occupancy tax) make up about 68% of general fund revenue. He summarized FY24–25 unaudited figures: total general fund revenue collected was about $42.6 million and expenses were about $38.1 million, leaving positive unaudited results. He cautioned those figures are unaudited and could change with the external audit.
For quarter 1, Lima noted gross sales tax and timing of state payments created variability: true‑ups and estimated payments drive large monthly spikes in September, December, March and June. Quarter‑to‑quarter comparisons showed a small decline in overall general fund receipts in Q1 versus the prior year driven primarily by sales tax timing and a tax‑sharing payment to the county. Expenses rose year‑over‑year for the first quarter primarily due to a routine quarterly CalFire payment and timing differences.
On enterprise funds, Lima gave a quick look at the airport fund: rents and leases account for most operating revenue, the unrestricted fund balance was about $1.8 million as of 06/30/2024, and operating revenues cover operating expenses. He noted preliminary planning for main runway reconstruction with an estimated preliminary cost of about $5.8 million and indicated staff is discussing federal funding contributions with the FAA.
Lima recommended no budget adjustments at this time because the variances appear attributable to timing differences rather than structural issues. Council members asked for drivers behind sales‑tax spikes and sustainability of growth; Lima attributed spikes to both the state payment schedule and underlying local business activity.
