Perry City finance staff reports FY2026 budget update; audit delayed, sales tax trending up

City finance staff presented the first budget update for fiscal year 2026 (through November 2025) at the Jan. 8 meeting, reporting routine operating positions across funds but noting timing issues with property tax and a delayed audit.

Key points: the fiscal year was 42% complete and general revenues read at 22% because property tax receipts lag into January; sewer and water operating revenues were near expected percentages (around 40%), storm-drain and nonoperating revenues reflected impact-fee income tied to West Meadows development, and community development expenditures were higher (58.9%) due to subdivision billing activity. The fire line item showed 88.6% of budget spent because the council had paid a one‑time fire fee this year.

Sales tax receipts were reported at $471,005.24 (3.67% higher than the prior fiscal year at the same point) and were expected to rise as holiday spending posts in January and February. Staff explained an auditor transition had delayed the annual audit but said the auditor expects to finish by the end of the month and present findings at the first February meeting. A council member asked whether the state would withhold funding for an overdue audit; staff said the state typically allows a grace period during auditor transitions before issuing sanctions.

Council asked staff to provide additional detail on new‑home projections and how development activity is tracking against budget assumptions; staff said those projections will be presented in a subsequent report.

The council thanked staff for the update and moved to other agenda business.