Centerville finance director reports FY2026 midyear: revenues strong, some departments over budget

Karen, the town’s finance director, presented the FY2026 midyear financial update to the Town Council on Feb. 19, reporting that the town has reached midyear benchmarks and that general fund revenues are about 84% received for the first six months of the fiscal year.

Karen said property taxes and local income tax accounted for much of the revenue received in October, December and January. On the expense side, most departments are at or below the expected 50% spending mark for six months, but the planning and zoning department is at 124% spending because of consultant costs used while the town recruited and hired a zoning administrator.

Enterprise fund revenues were reported at approximately 57% received. Karen said the water and sewer plant contracts and their timing of invoicing are the main drivers of variability in enterprise spending; the plant’s contract was prepaid in the current fiscal year, which contributes to that department appearing slightly above 50% spent.

Karen corrected an administrative date during her remarks and said American Rescue Plan Act (ARPA) funds are fully obligated and are planned to be spent by the end of summer to complete a lagoon project. She noted pension expense is paid once annually and debt principal payments occur in April and May, which affect timing of expenses across the year.

Council members asked whether the budget projects a break-even year; Karen and staff said they expect to be close to break-even overall and perhaps slightly better on the general fund side due to property tax and public utility tax receipts.

What happens next: The formal budget presentation is scheduled for the March 5 meeting, and council members will receive binders and an overview then.