Rowlett reports Q2 finances: revenues above forecast; wastewater costs flagged

At the May 19 meeting, Finance Director Wendy Badgett presented the City's comprehensive financial report for the period ending March 31, 2026, saying the city received roughly $113,000,000 through the second quarter — about 73% of the revised $156,000,000 annual budget — and that overall general-fund revenues were $5.6 million above the quarter forecast.

Badgett attributed the revenue variance primarily to property-tax collections ($3.2 million ahead of forecast), higher interest earnings, building-permit and inspection fees and an above-forecast sales-tax estimate. "Overall, general fund revenues are shown reported above the 2nd quarter forecast by $5,600,000," she said.

Councillors focused questioning on the utility fund, where staff reported revenues were up slightly but expenses were $296,000 above forecast, driven largely by higher wastewater-treatment costs paid to the city of Garland. Mayor Jeff Winget said the council is tracking an "about $800,000" variance in wastewater costs related to an infiltration-and-inflow (I&I) issue and that investigations and public-works work are ongoing. "We are looking forward to getting that resolved because obviously that's going to cost us money, not only now, but with future rate increases," he said.

Staff noted the variance is being studied and that seasonal timing and vacancy savings are offsetting other expense items; staff recommended continued monitoring and return reporting as work on the I&I investigations and remediation proceeds.