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Wilmington reports stronger-than-expected FY25 results; fund balance ends slightly above policy
Summary
Finance Director Martha Wayne told council that preliminary FY25 results are unaudited but generally favorable: revenue beat budget by about $3.3 million, interest earnings exceeded estimates by roughly $1 million, and the general fund ended the year with an unassigned balance above the department’s 20–25% policy band.
Finance Director Martha Wayne on Wednesday presented preliminary, unaudited results for fiscal year 2025, telling Wilmington City Council that the year closed in better shape than budgeted despite using some appropriated reserves.
Wayne said total general fund revenue exceeded the adjusted budget by approximately $3.3 million, driven in part by property tax receipts that exceeded estimates by about $666,000 and stronger-than-expected interest income. “Our interest earnings came in approximately $1 million over what we anticipated,” she said, and noted an average investment yield of about 4.36% for the year.
On the expense side, Wayne reported total general fund expenditures came in under budget by roughly $3.8 million. About $2.2 million of that underspend reflected purchase orders issued in FY25 for work not yet completed; those amounts will carry forward into FY26. The city had originally planned to appropriate $11.9 million of fund balance but instead used roughly $3.8 million, she said.
Wayne reviewed fund balance categories and policy, reiterating the city’s guidance to maintain an unassigned fund balance equal to 20–25% of operating budget and noting that balances above 30% can be shifted to debt service by council action. She also walked council through the risk that disaster reimbursements can be delayed: FEMA often covers 75% of eligible costs, and state supplements have covered additional portions in the past but are not guaranteed.
In enterprise funds, Wayne reported mixed performance: the stormwater fund balance increased by about $965,000, recycling and trash funds rose roughly $1.6 million, while the parking and golf funds decreased by about $87,000 and $48,000 respectively. Staff cautioned that recycling costs are under pressure from commodity market shifts and higher contamination rates at the processor, which increase tipping fees.
On housing spending, Wayne said the city passed through state recovery funds to a project called Starway Village and that the city was awarded $894,587 in CDBG federal entitlement funds in FY25 (about $851,000 spent). She said HOME funds totaled $568,783 and that carryover balances into FY26 include approximately $360,000 in CDBG, $1.3 million in HOME, and $3.9 million from the general fund; staff noted some of those carryovers may already be spoken for by planned projects.
Wayne cautioned that all numbers are preliminary and subject to the external audit but said she did not anticipate significant changes to the results presented. Next steps include final audit adjustments and staff follow-up on specific line items as needed.
