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Monthly financial report: Fort Worth projects roughly $8.4 million revenue shortfall; fire overtime, fleet costs and group health drive pressures
Summary
Assistant finance director Christy Liman said a certified-value error and audit adjustments are contributing to an estimated $8.4 million revenue shortfall for the year; the city is enforcing a hiring and discretionary spending freeze while planning transfers to cover department overages.
Christy Liman, assistant director in the Fort Worth finance office, presented the committee with the city's monthly financial report and described revenue and expenditure pressures shaping the budget outlook.
Liman said an error in the certified values report lowered collection capacity by $2.6 million and that property-tax revenue is about $9,000,000 under budget for the year. She also said sales-tax projections are roughly $3.5 million under budget and that a negative audit adjustment of $3.6 million contributed to the shortfalls. Taken together, Liman said the revenue picture leaves the city expected to be about $8,400,000 under budget for revenues this year.
On expenditures, Liman said the city has a hiring freeze and a discretionary spending freeze to manage the gap. The fire department is projected to be nearly $9,000,000 over budget, driven primarily by overtime and rising fleet costs; a $780,000 transfer from the general fund is projected to offset some fleet expenses. Police overtime is also a continuing driver of department overages.
Liman flagged other funds: an almost $11,000,000 planned transfer related to 200 Texas Street (CCPD) and a group health fund that is projecting to use roughly $16,000,000 through year-end. She said a budget work session on the group health fund is scheduled for next week to provide more detail.
Committee members thanked Liman for the presentation and asked follow-up questions about overtime and hiring.
