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Controller says city's quarter-3 forecast shows fund balance drawdown, $17M property-tax shortfall
Summary
City Controller George Hargrove told the Board of Estimate and Taxation that the quarter-3 forecast shows the general fund drawing down roughly $67.6 million (now nearer the low $70 millions in recent books), a projected $18 million revenue shortfall driven mainly by a roughly $17 million property-tax variance, and about $3—4 million in higher expenditures largely from public safety and snow-related public-works costs.
City Controller George Hargrove and Deputy Controller Robert Lang presented the city's quarter-3 financial forecast to the Board of Estimate and Taxation on Jan. 28, 2026, emphasizing that the figures are unaudited and will be finalized during the annual audit process.
Hargrove said the city continues to "spend down its fund balances," noting that a summer forecast of roughly $60 million in general-fund drawdown is now about $67.6 million and that more recent accounting shows the figure "now in the 70s." He reported the book value of cash and investments as of Sept. 30 at about $1,186,000,000, an increase versus Sept. 30, 2024, driven largely by self-insurance and enterprise funds.
Deputy Controller Robert Lang reviewed general-fund specifics: the projection showed a cash balance of about $166,000,000 as of Sept. 30, down from the roughly $234,000,000 the city ended with the prior year. The projected fund balance at quarter 3 was $141,000,000, and the forecast indicated $3—4 million more in expenditures than revenues. Hargrove and Lang said the administration is tracking a projected $18,000,000 revenue variance, primarily driven by a roughly $17,000,000 shortfall in property-tax collections and lower franchise fees and license revenue.
Lang identified six departments over budget (of 26): public works, fire, police and others. He attributed about $2,000,000 of the additional expenditures to snow-emergency costs in public works and roughly $1,000,000 each in fire and police overages. Hargrove said the administration has asked departments not to submit general-fund rollover requests for 2026 so that departments would need to use their 2026 budget to complete any unspent 2025 work, and staff are reserving funds to cover potential overruns.
On reserves, Hargrove said the projected unassigned fund-balance figures fluctuate as accounting is finalized; Lang presented unassigned fund-balance estimates in the range of $114,000,000 to $118,000,000 compared with the board's 17% target of about $109,000,000. Hargrove said that as of October staff estimated roughly $9.5 million above the 17% minimum but that recent adjustments put that margin nearer $5,000,000.
Hargrove and Lang emphasized the forecasts are preliminary and unaudited; final numbers will appear in the annual comprehensive financial report and the audit, expected to be finalized by June. After the public meeting lost quorum the board adjourned and staff continued the presentation informally.
