Positive Outlook for start of 2025 in March 19th City Council Budget Meeting

The recent city council budget meeting provided an insightful look into the financial health and future prospects of our community. The Finance Director, Heidi Brillantes, and Assistant Finance Director, Jamielee Graves, presented the year-to-date budget performance as of January 31, 2025, highlighting several positive indicators that suggest a promising outlook for the year ahead.

One of the key points discussed was the budget performance for January 2025. Revenues exceeded projections by $173,400, bringing total general government revenues to just over $1.6 million. Utility taxes also performed well, coming in 8.8% above budgeted revenues. This strong start positions the city well as it moves further into the year.

Screen capture from meeting recording available on YouTube

The meeting also covered various revenue streams. Business and occupation tax receipts were up by $91,200, while sales tax receipts were about 3.4% below budget. The automotive sector performed well in retail, while general merchandise, furniture, electronics, and gas tempered overall growth. Construction fell below budget expectations due to a decrease in building permits.

Expenditures for January came in lower than budget, which is another positive sign for the city's financial health. The city adjusted the general government revenue expenditure budget during budget amendment number three of last year to account for the financial impact of the Boeing strike. Despite the strike, January 2025 revenues showed positive signs of recovery, with revenues up 1.51% from the monthly forecast.

The council had several questions regarding the financial report, including the impact of the Boeing strike, the December 2024 preliminary monthly financial report, and the ending fund balance. The Finance Director explained that the budgeted ending fund balance must be no less than 20% of budgeted operating revenues. The actual ending fund balance was higher than the required amount, although lower than has been maintained in past years.

The city's financial policies were discussed, and no changes were recommended at this time. The council emphasized the importance of maintaining a conservative approach to the fund balance, ensuring that the city remains financially stable.

Overall, the city's annual revenue projections have historically had a forecast accuracy of 2.5%, outperforming the state average of 3.5%. This demonstrates the effectiveness of the city's forecasting process and a stronger alignment with actual outcomes.

Perhaps the cost of this high level of accuracy is a delay in reporting results. If we were to have one concern after listening to this meeting, it would be that end of month January results are being shared with council in late March. Reviewing fiscal results in a timely manner seems like it would be key to sound decision making.

Many council members expressed concerns over not being adequately included and informed by the city administration last year. Are delays in reporting like this part of the problem?

Nevertheless, the city council budget meeting provided a positive outlook for 2025, with strong revenue performance and a commitment to maintaining financial stability. After a long year of belaboring the structural deficit, it is nice to start off the year on the right foot.