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City finance director briefs council on first-quarter FY2026 finances; residents raise budget concerns
Summary
The city's finance director presented the FY2026 first-quarter financial report covering revenues, expenses and fund transfers; citizens questioned licensing and tax enforcement and an attendee announced plans to run for the District 3 vacancy.
Colleen officials reviewed the city's first-quarter financial results for fiscal year 2026 during the March 3 meeting and fielded citizen concerns about revenue collection and business licensing.
Finance presenter Miss Tangler walked council through staffing indicators and a fund-by-fund snapshot. She reported general fund revenues of $66.5 million, noting property tax receipts reflected normal seasonal timing and that total revenues showed a 4.3% increase over the prior year. Tangler said certain variances — including higher percentages of expenses in some funds — resulted from planned budgeted transfers to capital improvement projects that occur early in the fiscal year.
On the water and sewer fund, staff said the city had collected about 23.6% of expected revenues and expended roughly 24% of its budget, with an explained net change and transfers to CIP. The solid-waste and golf-course funds showed typical seasonal patterns; the aviation fund recorded a positive change of approximately $326,000, per staff remarks.
During citizen comment, Michael Fernino, who identified himself as a disabled veteran, criticized the city for an emphasis on raising property taxes and alleged the city is not collecting revenue from numerous businesses he said are listed on Google Maps without business licenses or proper inspections. "There are dozens upon dozens of businesses in this town that are listed quite plainly on Google Maps as businesses... They're not taxed by the city or the state," Fernino said. The transcript records his complaint but not a staff response addressing the specific licensing or tax-enforcement allegations.
Another speaker, David Bass, thanked former District 3 Council Member Nina Cobb for her service and said he intends to file to finish her term; city staff later confirmed the special election filing window will run March 4–23 with the election on May 2, 2026.
Council asked clarifying questions about why some funds show higher early-year expenditures; Tangler explained that budgeted transfers out to CIP accounts are recorded at the start of the year and can make early-quarter expense percentages appear elevated even when operating expenditures are within expectations.
No budget amendments or policy changes were adopted at the meeting; council approved the broader consent agenda that included the investment report.
