City CFO reports $38.7M surplus through Nov. 30; officials caution annual shortfall remains

Acting Deputy Chief Financial Officer Donnie Johnson said the city was running ahead through the first five months of the fiscal year but warned that projected annual results still show a shortfall.

"We're running $24,000,000 over on wagering collections," Johnson said, and reported that other revenues were performing better than expected, producing a year‑to‑date overcollection of about $36,700,000. Expenditures were underspent by roughly $2,000,000, leaving an operating surplus of $38,700,000 through Nov. 30, 2025.

Johnson and fellow OCFO officials told the Budget, Audit and Finance Committee that those month‑to‑date gains do not eliminate a projected annual revenue gap. The office is still projecting a net revenue shortfall of about $32,200,000 for the year and an operating deficit of roughly $16,200,000 before the use of reserves. "With the corporate income tax reserve in place," Johnson said, "we are able to rely on that to ensure that we end the fiscal year with around a $25,000,000 surplus."

Treasury staff added detail on collections and cash. Acting Deputy CFO and treasurer Valerie Golley said city cash on hand remained strong, with a reported general ledger cash balance around $1.6 billion and the common cash pool expected to remain in the $700 million range for the next six months. OCFO staff noted withholding collections were about $12,000,000 higher year‑to‑date than the previous year, while corporate and partnership collections were slightly lower.

The presentation also reviewed employee counts and vacancy impacts. Golley reported an 89‑FTE month‑over‑month decline in November driven by seasonal offboarding; deputies said some vacancy savings help absorb other cost pressures but long‑term unfilled skilled positions can increase costs when the city must contract outside services.

On accounts payable, the OCFO said invoices on hold were generally tied to vendor disputes or retainage. Chief Deputy CFO Regina Greer told the panel that invoices are not "forfeited" and the city accrues liabilities for held invoices at fiscal‑year end and works with vendors to resolve upload or validation problems.

Council members pressed the administration on property tax trends and the impact of uncapping. OCFO staff said higher taxable values, uncapping and timing differences can explain the year‑to‑date increases and that the February revenue estimating conference (scheduled for Feb. 13, 2026) will produce the formal revised estimates.

The committee voted, without objection, to receive and file the five‑month financial report. The OCFO agreed to provide written responses to a set of follow‑up questions about accounts payable, collection timing and the inputs to the February revenue conference.

What’s next: The OCFO will provide written answers to members’ questions and present updated estimates at the February revenue estimating conference; the committee retained jurisdiction.