City finance director reports higher penalties and interest, expenditures tracking below budget at seven months

Deputy Director of Finance Aquaneta Harris presented the city’s January FY26 monthly report on March 2, reporting a mix of revenue increases and stable spending.

Harris said penalties and interest collections were $396,000 higher than the prior year and that transit occupancy tax revenue was $260,000 above the prior‑year level. Sales tax was described as remaining flat year over year. She reported that at seven months into the fiscal year total expenditures were at 52% of the FY26 budget (the meeting noted the seven‑month benchmark as about 58%).

The briefing included slides listing deferred capital maintenance commitments: the presentation listed ‘‘elevator replacements, our total commitments are 3.5 and HVAC, mechanical and electrical upgrades, our total commitments are at 1.8.’’ The presentation did not specify units in the spoken transcript for those figures; staff said finance will continue to track commitments monthly and provide updates on significant changes.

Councilmembers asked for clarity on payment discounts for the prepared food and beverage tax and whether the recommended budget could be shared with state delegates and senators; staff said they would provide the March 23 recommended budget materials and a link for state lawmakers.

Finance staff said they will continue to monitor revenues and expenditures, meet monthly with department budget leads and report any significant changes during the fiscal year.