Comptroller projects $466.2M year‑end fund balance, warns $110–$120M drainage‑fund exposure and urges higher pay for city auditor

Comptroller Chris Hollins told the Budget and Fiscal Affairs Committee on July 1 that his office projects an FY2024 general fund ending balance of $466,200,000 and noted the projection is about $280 million above the city’s 7.5% reserve target but $11.4 million lower than the finance department’s estimate.

Hollins attributed a $12.4 million increase in the comptroller’s revenue forecast from April to higher charges for services — including $8.6 million in ambulance fees — and $3.5 million in additional interest earnings, and said enterprise revenues for the convention and entertainment fund rose by about $8.1 million.

Hollins also cautioned the committee about legal exposure tied to a challenge over the city’s 11.8¢ dedicated drainage and street renewal funds (DDSRF). “What we’re looking at, if we were to lose our appeals at the Supreme Court, is an extra 110 to $120,000,000 that we would need to locate and invest in drainage funds, immediately,” Hollins said, urging council attention to the question of where those funds would come from.

The committee chair and Hollins discussed the procedural posture of the appeal and the timing uncertainty if the higher court declines review; Hollins said there is no statutory timeline for the Supreme Court to act, creating a potential period of limbo for the city’s finances.

Finance Director Melissa Dubowsky presented the department’s 11+1 report and a slightly different projection: she said the current projection for the ending general fund balance is $478,000,000 (about 19.2% of estimated expenditures less debt service and pay‑as‑you‑go items). Dubowsky reiterated the $8.1 million increase in nonoperating revenue for the convention and entertainment fund and called the sales‑tax projection conservative given recent receipts.

On staffing, Hollins said the controller’s office needs to raise the pay scale for the city auditor to attract candidates. “Something in the $2.40 to $2.60 range for a city auditor would be an amount that would at least get a second glance from somebody of the talent level that we’re looking for,” Hollins said; the transcript uses the phrasing "$2.40 to $2.60," which the office indicated is meant as a shorthand for a salary in the roughly $240,000–$260,000 range, compared with the current city auditor salary the comptroller described as in the “mid‑100s and eighties.”

Dubowsky also updated on a financed project: the firefighter bond transaction is planned to be priced July 11 with an anticipated closing July 18, she said, and staff, financial advisors and legal teams are coordinating on a rapid timeline.

Why it matters: the potential DDSRF exposure — $110 million to $120 million if the city loses judicial review — would require significant budget planning and possible revenue or expenditure adjustments in future fiscal years. Recruiting a city auditor at higher pay is framed as urgent by the comptroller because the office is in active recruitment following a retirement.

Next steps: Chair Sally Alcorn and committee members asked staff to provide follow‑up analysis on the DDSRF exposure, and the committee will receive additional information as the city’s legal proceedings and recruitment progress.