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Finance director: Auburn's third-quarter 2025 report shows mixed signals — 10% above revenue expectations but some indicators lag 2024
Summary
Finance Director Thomas told the council the city collected about 10% more revenue than budgeted year-to-date through Sept. 30, 2025, while underspending about $10 million (11%) of budgeted expenditures; ARPA spending and delinquent B&O collections shaped the results.
Finance Director Thomas presented the third-quarter 2025 general fund financial report on Jan. 12, covering results through Sept. 30, 2025. Thomas said year-to-date revenues were roughly 10% above original expectations, while expenditures were underspent by about $10 million (approximately 11% of budget). Compared with the same period in 2024, the city had collected about $2 million less and spent about $5.6 million more.
Thomas explained the composition of variances: transfers-in have slowed, in part because of ARPA-project accounting and a slower ARPA spend-down; delinquent B&O (business and occupation) tax collections accounted for roughly $1.6 million of a $2.2 million year-to-date B&O overperformance and were treated as one-time items for forecasting. Retail sales tax (29% of general fund revenue) was essentially on budget, down about $223,000 from 2024 year-to-date. Construction and retail categories showed weakness; the automotive sector outperformed with about $106,000 more year-to-date.
On expenditures, municipal court overspent due to rising public-defense contract costs; several departments underspent because of unfilled positions; and internal services underspent largely because contingency and non-departmental budgets were held. Thomas summarized capital highlights: REET receipts were about $2.5 million year-to-date (above the $1.8 million budgeted but below 2024), and the biennial REET programming for 2025–26 included $10.9 million planned for capital projects.
ARPA: Thomas said the city spent $366,000 in ARPA in quarter 3, $8.7 million year-to-date and had approximately $6 million remaining in the ARPA fund; some projects had costs incurred but transfers to the general fund were pending reconciliation.
Councilmember questions included the golf-course closure and repair: Thomas said no firm 2025 projections have been prepared for repair-related revenue loss but expected 2025 impacts to be minimal because December is a slow month; staff will provide further analysis for 2026 as project timing clarifies.
The report provides the council a snapshot of revenue sources and cost pressures for use in mid-biennial and 2026 budget planning.
