Finance director reports $6.7M general‑fund reserve, revenues expected in Q3

Finance Director Victor Manquez presented the city’s second‑quarter budget summary for FY 2025–26 at the April 1 council meeting.

Manquez reported general‑fund expenditures were at roughly 42% of budget for Q2 — about $1.1–$1.5 million under budget — while general revenues had reached approximately 40% of the annual budget. He said the general‑fund reserve stands at $6.7 million (about 35% of operating budget, equivalent to more than four months of operating expenses), up from 30% at Q1. City pool cash across all funds was described as close to $44.8 million.

The finance director noted that large revenue inflows typically come in the third quarter — chiefly property‑tax receipts and some county funds — and that the city’s investments generated interest (reported Q2 interest of about $418,899, year‑to‑date $6,869,508 according to the slides). Manquez provided enterprise fund snapshots showing net operating positions for water and wastewater and said next quarter’s CIP report will show capital spending and any reserve draws.

Council members asked why Q3 typically shifts the revenue picture; Manquez explained the timing of property‑tax and county distributions. He also noted the city’s debt issues for water (≈$8.3M) and wastewater (≈$16.68M) and said the team is preparing a budget workshop and a more detailed Q3 CIP update.

Why it matters: The reserve level reported (6.7M) exceeds recommended minimums and gives the city flexibility for operations and capital projects, while timing of revenues affects midyear budget planning.

Next steps: Finance staff will present a more detailed Q3 CIP and revenue update at the next reporting cycle and coordinate a budget workshop for council consideration.