Finance director: third-quarter forecast shows roughly $1.9 million net surplus after $10 million settlement

The finance director presented the city’s third-quarter general fund forecast through September and said the city currently projects a net surplus of approximately $1.9 million for the year.

John Regini (Finance director) told the committee the revenue side is expected to show about $10.995 million in surplus largely driven by a $10 million freighter settlement; on the expenditure side staff forecast roughly $9.1 million in additional costs. "We think the general fund will end the year with about a $1,900,000 surplus," he said, noting the current fund balance of $26.5 million would grow to about $28.4 million, roughly 123% of the city’s policy target.

Regini highlighted areas of risk: the value of commercial building permits is down year over year (driving lower assessed-value growth), hotel-motel revenue appears to be plateauing, and ambulance-trip volumes are down from budgeted levels. Public-safety overtime was discussed: fire overtime pressures are being managed through shift adjustments but still forecast a modest net deficit; police overtime is driven by vacancies and worker-comp claims. Regini said staffing vacancies and people out on leave together create the equivalent of roughly 14 unavailable positions at times.

The committee asked for ongoing monitoring; Regini said designations for settlement proceeds and contingency transfers are in place and that several of the large, flood-related parks costs sit in the parks fund rather than the general fund. No formal committee action was required on the forecast.