City manager reports midyear revenue shortfall; transfers expected to largely close gap

City Manager Henry Arlando presented a midyear budget summary to the Alpine City Council workshop on July 21, saying the city's core revenues are flat and that staff forecast an operating position lower than the adopted budget without transfers. "What we have here is we've downloaded from the Hill Country software system where all our accounting data's at," Arlando said, describing year-to-date actuals through June and staff forecasts.

Arlando told council the adopted budget for the current year was $16.9 million while first-half actual revenues were about $10.4 million; staff forecast year-end operating revenues (excluding transfers) near $13.5 million. He cautioned the packet is incomplete and that recent budget amendments for expenses since May will change both revenue and expense totals. Chair (S2) and Arlando noted an approved transfer of roughly $1.4 million would move the forecast into a modest positive position. "By law, the audits had to be submitted by March 31, and we didn't fulfill that," Arlando added, warning the late audit filing prevents any increase to the property tax rate this year.

The presentation emphasized two primary local revenue streams—property tax and sales tax—are effectively flat, limiting discretionary capacity for new spending. Arlando recommended council focus on revenue-side options and set priorities that staff will build into the next workshop's proposed budget. The council agreed to return to these figures at the next scheduled workshop and review amendments and transfer timing before the proposed budget is published.