Finance director: March revenues at ~75%; motor-vehicle excise up, $1.8M snow-and-ice deficit to be covered from free cash

Patrick Burns presented the March revenue-versus-expenditure report at the council meeting, telling members the city is at roughly the three-quarter mark for both revenues and expenditures and highlighted two items of note: higher motor-vehicle excise receipts and a sizable snow-and-ice deficit.

"Our motor vehicle excise revenue through March 31 is $12,800,000," Burns said, noting the figure is up from $11,200,000 at the same point last year. On expenditures, he said the snow-and-ice deficit currently stands at $1,800,000; Burns said the plan is to address that deficit before the end of the fiscal year with a transfer from free cash.

Councilors asked follow-up questions about bulk purchases and reserves. Burns explained the city fills its salt shed at the start of the fiscal year and buys fuel in bulk under RFP contracts; departments use a card system to monitor usage. When asked whether the snow-and-ice transfer would come from free cash, Burns said yes and reported the free cash balance at about $3.6 million and the main reserve at $75,100,000.

Councilor Hurst asked why the snow-and-ice deficit reached $1.8 million; Burns said the historical budget line has been about $1.6 million and that the city typically "level funds" the line, leaving the city exposed to an unusually severe winter.

The council conducted a roll-call acceptance of the March report; the clerk recorded affirmative votes and the item was approved. The council also took up three bundled grant items under the $100,000 threshold and approved them by roll call: a $9,000 grant to the National Health, Environment Association (no match required); AMP 26 for $10,000 (no match required); and a $20,000 increase to the VET 26 grant (no match required).

Why it matters: The motor-vehicle excise uptick signals revenue growth in that line, but the snow-and-ice overspend reduces one-time reserves. Covering the $1.8 million deficit from free cash would use roughly half of the free cash balance reported by Burns. Councilors said they will follow up with staff for more detail on fuel reserves, permit revenue drivers and property tax lien levels.

Next steps: Burns said a transfer will be brought forward at an upcoming meeting to address the snow-and-ice deficit; councilors requested additional data on fuel volume in reserve, license-and-permit revenue drivers and the quantified amount of property tax liens.