Lifetime Citizen Portal Access — AI Briefings, Alerts & Unlimited Follows
City reports midyear budget shortfall in 'gain'; reserves under pressure
Loading...
Summary
Finance staff told council the general fund midyear 'gain' fell from $7.9 million to $6.9 million versus last year, days of reserve are approximately 49 (prorated) versus a budgeted 68, and the utility fund shows a smaller midyear loss but debt service pressure remains.
Denison — City finance staff presented a midyear update on the fiscal‑year 2026 budget using data through March 31, reporting revenue timing issues and pressure on reserve levels that council members said will shape the upcoming budget retreat.
Lori Ausselbaugh reviewed key figures: the general fund midyear gain dropped from about $7.9 million last March to about $6.9 million this year; year‑to‑date property tax collections are about $20.0 million (roughly $212,000 more than at the same point last year); overall general fund spending is approximately 50.7% of budget through March. Staff cautioned that timing of collections and one‑time items can skew midyear metrics. Days of reserve were reported at 49 (prorated) compared with the budgeted 68 days, a point councilmembers used to stress the need to prioritize essential spending.
On the utility side, the budget is balanced at $28.0 million with a small projected surplus, but midyear shows a loss of about $1.5 million (an improvement from last year’s $2.1 million loss). Debt payments are the largest single utility expense and are projected to rise (staff cited an expected increase to about $15.5 million in fiscal year 2027). Staff also noted recent grant awards and expected grants — a preliminary $125,000 award for meter register replacement (a 'waterspark' grant) and smaller items including $26,000 for police body cameras and $18,000 for IT training certifications.
Council thanked staff for fiscal restraint and discussed the need to "tighten bolts" ahead of a June 26 budget retreat. Staff will return with further detail as budget work continues.
Key figures from the presentation: general fund midyear gain $6.9M (vs. $7.9M prior year); general fund year‑to‑date revenue approx. $33.3M; property tax collections YTD about $20.0M; expenses through March about $26.4M; general fund performance ~50.7% of budget; utility fund budget $28.0M with midyear loss ~$1.5M; projected utility debt payments ~$15.5M in FY27.
