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Finance director: Dixon closed FY24–25 with $1.1M surplus; FY25–26 shows $1.2M projected deficit
Summary
Finance Director Kate Sawatzki told the council the city ended FY24–25 with an unaudited $1.1 million surplus and reserves of about 57.5%, but projected a $1.2 million deficit for FY25–26 driven mainly by carryovers and capital projects; staff proposed $600,000 available for reprogramming and will return with recommendations.
Finance Director Kate Sawatzki presented unaudited results for the fiscal year ending Sept. 30, reporting a $1.1 million surplus that left the general fund with a projected $17.3 million balance, roughly 57.5% in reserves.
"We are projecting that fiscal year 25-26 will have a deficit of $1,200,000," Sawatzki said, explaining that about $500,000 of the shortfall reflects carryovers from incomplete projects and that interest income has been unusually strong this year.
Sawatzki walked council through line-item drivers: special sales tax outperforming projections by roughly $600,000, lower-than-expected consultant spending and salary savings. She also noted projected capital spending in the water fund that contributes to multi-year deficits but said some projects will be carried forward rather than completed in a single year.
Council members pressed on the five-year forecast and reserve burn rates; Sawatzki said revenue estimates are conservative because development-driven income can be volatile and pledged to return with midyear adjustments. The council voted to accept the report and approve the recommended budget adjustments.
Looking ahead, staff asked if the council wanted to direct use of the $600,000 reprogrammable surplus; Sawatzki suggested options — including using funds toward a proposed fire apparatus — and said staff will bring specific recommendations to a future meeting.
