City finance director reports lower fund surpluses and higher paving and personnel costs in quarterly financials

Karen Scott, the city’s finance director, presented the quarterly financial report for the period ending June 30, 2025, detailing declines in several fund surpluses and key drivers behind the changes.

Why it matters: The report outlines sources of budget pressure—classified pay raises, debt service reclassifications and major paving work—and provides context for the board as it begins 2026 budget planning.

Scott reported the general fund’s revenues over expenditures were $2,830,000 for the period, down from $5,050,000 a year earlier. She attributed part of the decline to the classified pay plan that provides annual raises and to moving all debt service for Amendment 78 borrowing into the general fund. Scott also cited approximately $1.3 million in additional transfers out, mainly for the new fire station.

Street fund revenues over expenditures were $500,005.43, down from about $2.7 million last year; Scott said the change reflects ‘‘many more millions of dollars of expenditures for paving this year than we’ve had in the past.’’ The street fund’s restricted balance is $1,760,000 and the unrestricted balance is $14,300,000, Scott said.

Enterprise funds showed mixed results: the water fund reported revenues over expenditures of $1,070,000 but a slight decline from the prior year due to decreased interest income as construction funds are spent down; the wastewater fund’s revenues were below expenditures by $178,000, driven in part by roughly $1.5 million in additional personnel and services costs; and the solid waste fund’s revenues exceeded expenditures by $372,000, roughly flat year over year. Scott listed fund balances: water $83,800,000; wastewater $58,500,000; solid waste $8,300,000.

Scott closed by inviting questions; none were raised at the meeting. City staff said the financials will inform upcoming budget model work and the board’s goal-setting discussions.

Ending: The board hears these numbers as it begins budget planning for 2026; staff cited personnel costs, capital transfers and paving as the main near-term budget pressures.