Finance Board flags November shortfall, asks staff for clearer fund-balance visuals ahead of FY27 budget
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Summary
The Finance Board reviewed October–November financials showing a November year-to-date shortfall of about $569,519; staff said property-tax timing should reverse the deficit and board members requested month-by-month fund-balance graphs and red/yellow/green variance summaries before FY27 budget work begins.
City finance staff presented the October and November month-end financial reports and the board drilled into fund-balance timing and reporting clarity.
"You will see that we have a negative $569,519 delta of the total resources and total expenditures," the board chair said, highlighting the November year-to-date shortfall. Jay, the city finance presenter, told the board that early-year deficits are common because property taxes — roughly 60% of general-fund revenue — post later in the fiscal year, and he expected the deficit to narrow when December and January receipts are recorded.
Jay reported that total year-to-date actuals (inclusive of use of fund balances) were $913,951 and that the council-approved fund-balance target is 35%. He noted the city’s total operating funds were about $24.2 million and that the total fund balance as of Nov. 30, 2025, was roughly $81 million.
Board members asked staff to prepare simpler, month-by-month fund-balance visualizations and a one-page red/yellow/green variance dashboard showing where departments are over or under budget. Several members said such condensed visual signals would make it easier for council and the public to understand whether the city is on track without wading through detailed backup reports.
Staff also provided capital-project updates (Legend Drive, Bridal Circle, Town Center Park) and noted the county will reimburse up to $2,000,000 for Terry Lane concrete-panel work. Jay reviewed progress on the ERP migration and the utility-billing transition; staff said the utility billing module has been launched and the city will retire its old system once reporting work is complete.
On the FY27 calendar, Jay summarized statutory deadlines and proposed internal dates (budget kickoff Feb. 11) and warned of a March 29 state rule change that could force cities that miss audited-financial-statement deadlines onto a "no new revenue" tax rate. Staff agreed to incorporate the Finance Board’s request for participation points into the preliminary calendar and to return with a revised schedule in February.
