Yes, uh commissioners, thank you.

Good afternoon.

Um, this is your quarterly uh finance committee briefing.

We'll start bringing it through a few details for the general fund and then proceed on with our enterprise funds and water and consumer as well as that being said.

I will now turn it over to the budget specifically under that.

Thank you, Joe.

Um, all right, we'll get started with the general fund as Joe mentioned.

Um, and so starting with the uh statement, um, as you know, the top section here shows the revenue categories, the 10 revenue categories that we have, and the bottom section shows the expenditure category.

Um, starting with revenue, total revenues were 3.7 million or 3.3% lower than the year-to-date, higher than the year-to-day budget, excuse me.

Um, and as for the comparison to last year, um the total revenues were $1 million above uh last year at the same time in June of 2025, which is uh approximately 0.8%.

Um of the 10 revenue categories performed above budget, as you can see in the table.

Um drilling down into uh various different revenue categories.

Uh, of course, we'll talk through income tax much more in detail in the next slide.

But this uh revenue categories that we're going to highlight today includes local government fund, um, which is 138% above last year's amount.

Um, and this is largely due to us meeting the prior obligation for the traffic enforcement camera program.

The other intergovernmental is is also up nearly 67% or $1.7 million dollars.

Um, and this is where we see the newly uh deposited adult use cannabis tax revenue, which started coming in in 2026.

Um fines and forfeits category is also up by 52 percent.

Um, this category, uh, as you may recall, we started booking the um traffic enforcement camera revenue um in general funds starting in April of 2025.

So there is a bit of a lag in this category year over year.

And license and permit category um has a decline of 25.7 percent.

Um, this has to do with the timing of uh construction permit revenue.

Um, and so as the time goes, uh this revenue should level.

The other revenue category I want to point out here is the other revenue, um, which is down by 76.5 percent.

Um, and this is largely due to the transfer that we did last year.

You may recall uh we did one time transfer last year from the old photo enforcement uh fund revenue, which was about 3.8 million dollars.

And so you can see that difference um in the year over year category.

Last year we had $5 million as of June, and this year we have $1.2 million.

The difference is that $3.8 million.

Um, the other thing I want to also point out is that the revenue categories that saw the largest increase, which is local government fund, other intergovernmental and fines and forfeits.

Um, the growth in those revenue categories is 80.5 percent.

So those are the categories that are really driving the growth in the revenues.

As for the uh uh expenditure section, uh personnel costs were 1.8 million dollars um below year-to-date budget or 2.1%.

Um conversely, they were $5.4 million above last year's amount at the same time, June 2025, um, which was nearly 7% increase.

Contracts and materials are $2 million or 8.1% above last year's amount.

And the purple highlighted categories that you see in the bottom, those are our investments, um, capital improvement and capital equipment.

Um, we have allocated 4.5 million for that, um, which is uh slightly lower than what we had funded last year.

Um, so is the development fund.

Development fund has an allocation of 3.1 million dollars, and demolition has an allocation of 1 million dollars.

Uh, and then the largest category in the investment is your dollars your neighborhood, which has an allocation of 11.7 million dollars.

Um, for capital improvement in equipment, we have done most of the transfers except for $600,000, which will be done uh in the second part of the year.

Um, and uh for the for the year uh overall yearly trend, um, you are going to see a decline in spending and investment um because of the fact that we had to reduce 450,000 of capital investment um to fill the 2026 budget gap, which includes 150,000 each in capital improvement, capital equipment, and development fund.

So you will see that all through the year.

All right, diving into income tax.

Income tax counted 71% of the total revenue.

As of June, year to that year to date net collections were essentially flat compared to 2025.

You can see that in the table on the right hand side.

Withholdings is our largest category in the income tax, and withholdings were 1.6 million dollars or 2.2% above last year's amount, totaling $73.5 million in collections for June 2026.

Now business profits includes corporations and partnerships.

And so corporations account for 71.1% of the total collection and partnerships account for 28.9% of the total collection.

Corporate profits declined 2.7% as of June, and partnerships declined 12%.

As for the refunds, refunds are also negatively impacting the income tax collections because we are seeing higher refunds in 2026 by million dollars.

You can see that in the table as well.

Last year we had processed 2.5 million of refund at this point.

This year we have processed 3.5 million in refund.

Refunds are this year's refunds are largely affected by the high dollar value refunds for business profits.

Business profits refunds, they're approximately 48.2% of the total refund and individual refunds were about almost 52% of the total refund.

Now, if we compare that to last year's data, you can see why the refunds are driven by the business profits refunds.

Last year, business profits were 31.14% of the total refund, and individuals were almost 69% of the total refunds.

So business profits refunds are the driver for the increase in refunds.