Finance director: Trenton no longer projecting midyear General Fund deficit

Matthew Mesisklis, Trenton's finance director, told the council the city "is no longer projecting that deficit" that had been forecast in the all-funds budget presented in December. He said the General Fund had received about 62% of expected revenues while spending stood at roughly 51% through midyear, helped by investment revenue shifts and RITA collections catching up.

Mesisklis identified several drivers: investment revenue that had been routed to capital funds has been shifted back primarily to the General Fund; vacancies have reduced payroll spending year to date; and the City has not used rainy-day funds for several years. He highlighted large capital outlays in the Water System Reserve Fund — about $2.8 million spent to date for a new water tower and meter replacements — but said those costs are reimbursed through an OWDA low-interest loan after the City advances payment. "The fund has a cash balance of approximately $3,155,125," Mesisklis said, noting the fund's cash policy floor is $300,000.

Mesisklis also reported collection trends: income tax collections were behind last year but improving (about 2% above the prior month), while property tax, PILOT and rollback revenues were below last year due to state credit changes and a county pre-split calculation issue. He said water and sewer revenues were a touch under 50% of expected year-to-date levels, in part because summer usage bills lag and the plant has produced roughly 28 million fewer gallons year to date compared with 2025, a change he attributed partly to water-loss mitigation and reduced usage at specific locations.

The report was presented as part of the work session; no formal action was taken.