Council reviews FY26 Q4 preliminary finances and quarterly capital updates; staff expects year to end near breakeven

Garner finance and project staff briefed the council on fiscal and capital updates during the July 21 meeting.

Finance Director (introduced as Mr. Beck in the manager’s presentation) said the Q4 numbers are preliminary and show an approximate $2.2 million deficit in the general fund at present, but accounting accruals and timing differences are expected to materially change the figure. Beck told the council three months of sales tax receipts (about $1 million per month) will be accrued back to the prior fiscal year and will add roughly $3 million to FY26 revenue; other quarterly state revenue and normal accruals will further reduce the reported deficit. “The biggest takeaway is that these are very preliminary numbers... I think we’ll probably end up somewhere around a breakeven position for the fiscal year,” Beck said.

Capital-project updates from the town’s capital coordinator (Harrison) noted several items. The Jones Sausage Road project requires a categorical exclusion because of LAP (federal) funding; FHWA requested a broader corridor review so staff expanded the CE scope which has delayed the project by roughly four to five months and pushed a likely construction letting to fall 2028. Other projects include near-completion sidewalk work on Avisboro/Garner Road, Rand Mill Streetscape construction with a waterline conflict, and an earlier-than-expected start for a US 70 street-lighting phase. Councilors asked about timing and whether Q4 reports should be delayed slightly to improve accuracy; staff said presenting Q4 in August could provide more reliable numbers.