All right.

It is 903, and I'm gonna call the audit and finance committee to order.

Um, first order of business, the approval of the May 5th minutes.

We have a second.

We have a second.

Second.

Thank you.

Um motion passes.

Uh we have one briefing today.

Um, Kate Perry and Christy Lemon.

We could just jump in real quick and actually take the vote on the minutes.

Sorry.

All right, guys, let's skip that.

So all in favor for the approval of the minutes.

Mr.

Jameson, sorry, we've all right.

Thank you.

Thank you.

Okay, motion passes.

Now we can move on.

Thank you.

All right.

Good morning.

I'm Christy Lemon.

I'm an assistant director in the Fort Worth Lab and I lead the budget team.

So I'm gonna walk you through the monthly financial report.

Um today we're gonna focus on really on the general fund.

There haven't been significant changes in the other funds, and we were just together a month ago, so we'll talk about the general fund and I'll just let you know what's changed.

We're gonna start on page five of the report.

Um so this is the high-level fund overview.

Um, couple of things on revenue.

You'll notice that um the property tax revenue has been adjusted downward again.

Um, so it's it's adjusted um the projection is just adjusted downward, an additional four million dollars, and this is based on um really just continued value loss that's resulting from litigation and arbitration, so an adjustment downward there.

Property, I mean sales tax um has improved a little bit, and so that has been adjusted uh upward by two million, so a little bit of a trade-off there between the property tax and sales tax, but the overall message is the same.

We are seeing some loss in revenue, so about um 11.4 million uh we expect to receive in revenue below what was budgeted below the adopted budget.

So very similar conversation that we've been having the past several months, but those are the details in terms of adjustments, and then high level um on expenditures.

We did lower our expenditure forecast um six point four million dollars this past month.

So the analyst team worked really closely with all the departments to identify discretionary cuts.

And of course, we've had a um a hiring freeze for quite some time now, and as we continue to have uh separations and vacancies, we're starting to see some results from that hiring freeze.

So you will see that salary and benefits are still over budget, and that's primarily due to police and fire overtime.

And then if you'll flip to page eight, we'll look at the individual department look.

So just a couple of things here.

We do have three departments that are between one and three percent over budget.

Those are um smaller departments, and the reason is really related to personnel costs.

So economic development and HR both have some overages.

So overages are positions that we add at some point throughout the year, and those are unbudgeted.

And so in a small department, it's hard for them to absorb those costs.

Um, but that was a planned thing.

So uh municipal court has been using some additional um part-time judges, temporary judges, and so we see a little bit of overage there as well.

So those are the yellow dots.

Um, we just have two red dots now, so police and fire, both of them uh overtime costs are contributing to their overages in the fire department, and we've we've talked about this before.

They're under budgeted for their fleet costs.

So we're seeing some rising fleet costs.

They expect to be um 2.3 million dollars over budget in fleet this year, and so in the um projected non-departmental transfer column, you'll see that we're gonna shift 780,000 dollars from non-departmental to the fire department to cover about a third of those overages that are related to fleet costs, and then the remainder of um their overages due to overtime costs.

Um, and then both police and fire did cut some this past um projection period.

So as I said, we we reduced about six and a half million dollars.

Police dropped their um projection two point eight and fire about eight hundred and fifty thousand dollars.

So we're seeing reductions across in all departments to get us closer to budget.

So we're still $3 million over budget, and we'll keep working on it this next month.

Um, so with the discretionary spending cuts and the hiring freeze, we're hopeful that we can bring that closer to budget.

So, that's really the overview for um for the general fund.

And I can take questions on general fund or any of the other funds if you have questions.

Questions from committee members?

All right.

Thank you, Christy.

Thank you so much.

That wraps up our briefings.

Um the meeting is adjourned.