Budget committee approves FY2026 second-quarter financial report and budget amendments

The Sebastian Budget Review Advisory Committee unanimously approved the FY2026 second-quarter financial report and a companion budget amendment report at its May 11 meeting.

Finance staff presenting the report said ad valorem taxes were 93% collected by March 31, sales and gas tax receipts lag by about two months and golf fees were 5% higher than last year, reaching 68% of the annual budget. The presenter noted a $1.28 million unrealized loss in fiduciary funds shown on March 31 and that interest earned rose from $243,000 the prior year to $494,000.

The committee adopted the fiscal report and the budget amendment by voice vote; the motions carried unanimously. The motions were moved and seconded on the floor; the transcript records the approvals as unanimous but does not record the names of the members who moved or seconded.

Committee members pressed staff on the composition of the variances. Finance staff said many increases are timing differences versus prior-year actuals: some departments purchased operating items earlier in the fiscal year, software and chart-of-accounts work were recorded this year, and a recently hired staff salary was encumbered. Staff also noted that one large CD is encumbered until December but most pooled investments have one-day liquidity.

“On the fiduciary fund section there was a $1.28 million unrealized loss that was shown on March 31 due to a market dip,” the presenter told the committee, adding that markets had recovered in April. City Manager Brian Benton later reiterated that staff view the city as maintaining appropriate liquidity and that capital projects and operations are continuing to advance.

The committee also reviewed the capital-projects exhibit and heard that the net effect on fund balance from the quarter’s adjustments was $5,297. The committee set its next meeting for July 20.

The approval carried with no recorded dissents. The committee adjourned after the votes.