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Finance director reports $27.3M projected general fund balance and $211.8M investment portfolio; council hears FY25 fourth-quarter review
Summary
Galveston’s finance director told the council that the city’s portfolio was $211.8 million at 12/31/2025 and projected an FY25 general fund balance of $27.3 million, noting most of the increase reflected one-time receipts and that hotel-occupancy tax collections lagged budget.
The Galveston City Council received a pair of finance presentations Feb. 26 in which Finance Director Chilo Ladonye reported a portfolio market value of $211,800,000 for the quarter ended Dec. 31, 2025, and a projected FY25 general fund ending balance of $27,300,000.
Ladonye told council that about $28,000,000 of the portfolio was in overnight (liquid) funds and that the city saw approximately a $9,000,000 increase in portfolio market value from the prior quarter, driven in part by property-tax receipts. Interest income for the period was “a little over $2,000,000,” and the average weighted maturity/yield metrics reflected recent decreases in the federal-funds rate.
On the budget report, Ladonye said the higher ending fund balance reflected several one-time items — a $1.9 million land sale, roughly $450,000 from a six-month hiring freeze and roughly $405,000 in reimbursements — which together were about $2.7 million and equal to roughly 12 days of operating revenue. She cautioned that without those one-time receipts the days-of-operations metric would be lower.
Ladonye also flagged a shortfall in hotel occupancy tax collections: roughly $1.7 million less than budget for state hotel-occupancy tax and a total shortfall in collections of about $2.1–$2.2 million versus budgeted expectations, with the state portion affecting the Park Board.
Council members asked how long the city could sustain the reserve level; Ladonye said sustainability depends on future major expenditures but that, absent significant unbudgeted spending in FY26, she did not anticipate a large drawdown.
The presentations finished with reminders that special revenue and internal service fund balances shown in the FY25 book are prior to FY26 budget activities and that some lines (separation pay, municipal court building security) had reporting irregularities that staff corrected in the book and will address in upcoming budget amendments and audit processes.
