Finance director reports FY24–25 unaudited results: $39.4M revenues, $9.9M ending fund balance; council warns of transfer‑tax volatility

Finance Director Karen Bawa presented Piedmont’s unaudited FY24–25 financial results on Nov. 3, reporting general‑fund revenues of $39.4 million — $1.7 million (5%) above the adopted budget — and a projected year‑end fund balance of about $9.9 million (25.7% of expenditures).

Bawa said underspending across departments (about 3% under budget) and several strong revenue lines produced the surplus. She highlighted key variances: real‑estate transfer tax receipts of roughly $4.5 million (about $715,000 over budget), building permits and planning fees of $2.3 million ($401,000 over budget), and $302,000 in mutual‑aid receipts tied to wildfire responses. She cautioned that transfer‑tax receipts are volatile and noted a decline in early FY25–26 sales activity and receipts.

On reserves, Bawa recommended use of $2.6 million to bolster capital and equipment funds and said that would leave a projected unassigned balance of about $7.3 million (19% of expenditures). Council members pressed staff on the multi‑year facilities needs shown in the presentation — a far‑right column that combined estimated needs over a five‑year horizon — and asked whether the city can “save our way” to those projects given staffing limits and ongoing maintenance demands. Public‑works Director Daniel Gonzales explained the city prioritizes projects by risk and bid readiness, noting cost escalation is modest for short slippages but becomes material for multi‑year deferrals.

Bawa emphasized the figures shown are unaudited; staff told council the auditors received materials Oct. 31 and expect to deliver draft financial statements in mid‑November, with a fuller council presentation planned for January. "These results are unaudited and very close to audited numbers," Bawa said during her presentation.