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City finance director previews year-end finances, CPI pressure and budget amendments
Summary
The chief financial officer told council that CPI is running higher than budget assumptions and walked through budget amendments tied to FAA grants, capital projects and adjustments for power costs and sales-use tax variances.
The city’s chief financial officer briefed council on May financials and proposed budget amendments on June 15, saying the Consumer Price Index for the period was 4.2% and a two-year trailing figure stood at 5.8%. The CFO warned that minimum-wage ballot measures and rising power costs could add unbudgeted expense to future years.
The CFO said sales tax receipts for the month were up about 6% (roughly $270,000) but year-to-date collections are approximately 8% below the prior year — a smaller shortfall than originally budgeted. Use tax was reported up about 13% year-to-date, reflecting new development activity. The department is recommending several budget amendments to reflect FAA grants, water-plant engineering and airport construction that were not included in the original operating budget.
The CFO also noted electric, water and sewer revenues are close to budget expectations (electric at ~98% of expected revenue; water 95%; sewer 103%) and that the city will submit budget amendments to reconcile grant transfers and capital outlays.
Why it matters: The financial update frames near-term fiscal capacity for capital projects and services. Council approved the budget amendments during the meeting, which staff said keep the city within overall budget targets while funding awarded grants and project expenditures.
Next steps: Finance staff will finalize the budget amendments and present the amended figures for public record and audit reconciliation.
