The city commission received a mid-year financial briefing from the finance team, covering general fund revenues and expenditures, income tax trends, economic indicators, and enterprise fund updates for the airport and water/sewer departments. No formal votes were taken; the briefing was informational.
General Fund Mid-Year Review (Ms. Jones/Abby and Jeanette)
Economic and Employment Update (Abby)
Aviation Department Update (Gail Turner and Anna)
Water and Sanitary Sewer Funds Update (Keisha Kenny)
All right. Mayor and Commissioner. This is your finance committee briefing. This is our mid year briefing. So remember, we'll always do a status update too on the health of the organization as we've been spending for the last uh six months. And we'll also do some economic updating as far as you know forecasting what we're getting from the economic experts, as well as you will also hear the uh updates uh regarding the enterprise functions at the airport and the water department. So I will turn it over to Ms. Jones to begin the breeding. Thank you, City Manager. Um good afternoon. Um we'll go over the we'll start with the statement. Um chakra some high level summary before we really fall into the detail. Um as you can see here, all revenues um are trending higher. Um revenues are 7.9 million dollars or 7.5% higher than last year compared to budget. Um, however, revenues are slightly under uh by 1.3 million dollars or 1%. Um, the largest revenue source, which you know um is income tax. Income tax remains flat compared to 2024, and we'll dive deeper into this in terms of the next slide with this report income tax. As for the other revenue categories, the largest increase is in the other revenue category by $3.5 million, as you can see. Uh, the revenue category is 225.5% higher than last year, and that has largely to do with the uh final transfer, cash transfer that we did this year from the coachment fund. Um, last year we completed this transfer in July. This year we did the transfer in June. Um, and this is the last year for that transfer. After this year, we do not have any cash balance remaining in that fund because we moved uh booking of that revenue into the general fund, and that's why you're seeing that a fund at program category, which is up by 1.4 million dollars or 502.2 percent. The other noteworthy category is EMS fees, um, which is up by 13.5 percent or nearly 500,000, and this is largely due to a 77% increase in the Medicaid rate, um, which went from 149 for transport to 259 at the start of 2024. But because there is a lag associated with the billing, and when we receive the revenue, we are seeing the impact in 2025. Expenditures for 2025 were under budget by 2.8 million or 2.2 percent, um, and we're 7.9 million above last year's amount. Uh, personnel costs were $3.6 million under budget by 4.3 million or 5.8 percent higher than 2024. In addition to the annual wage growth, timing of the police and fire recruit classes, as well as the police contractual wage adjustment, as you know that occurred at the end of last year. Um, and also the NATO-related cost are the driving factor for this increase. Contract material and other uses were up by $600,000 compared to 2024, and this was largely contributed by the higher supplies and material cost um that were needed for the NATO events, which were also by lower transfers compared to 2024. And as you know, to allow for adequate time for procurement, most investments have been funded in the beginning of the year. Um, one item to note in the investment section is the euro dollars year neighborhood investment with the renewal of issue six. As you can see, the um issue nine, issue six line um has an increase of 31.4 percent, and that's because of that increase in issue six from 8.3 million dollars to 10.9 million dollars. All right, we'll go into the income tax slide. So income tax, um, uh, like I said, is the largest source of revenue uh and it represents over 700% of total revenues as of June. Net collections through June are nearly flat and we're slightly under budget by 456,500. Um, even with net collections being flat, one thing to note is that there were five by Friday months in during 2024. Uh but for the first six months, there were three five by Friday months in 2024, as opposed to two five Friday months in 2025. You can see that in that table below, the green and blue highlighted columns represents the five Friday months, and as you can see for the first six months, we have three in 2024, and we have two in 2025. A five Friday month is approximately 1.1 to 1.5 million dollars. So with that in mind, 2025 is performing slightly better than 2024. Um, in the chart left to you, you can see three of the six months um have outperformed in income tax compared to last year.9 percent or six hundred and seventy thousand dollars compared to 2024. The tax on business profits, which includes corporate profits and partnership increased by 7.4% or 620,300, and payments by individuals are also up by 2.5%, although a small amount, a little over 100,000. All right, with that, um, Jeanette is going to walk us through the remaining revenue categories. Thank you. Um the first revenue category that I want to walk through is the property taxes and other taxes. Um, as you'll see, property taxes increase by 11.9% or just over almost 578,600. And part of the reason why we wanted to highlight this is because it's not that property values have actually increased because the last revaluation was in 2023. The county did the reval, and that impacted 2024's actual receipts that we received. Um, one thing to note when we started looking into this, um, every year we receive monthly advances from the county for our property tax revenue, and then by annually, they do what's called a settlement.