Takoma Park Q3 financial report shows $3.8 million year-to-date surplus; parking meters and camera programs lag

Deputy City Manager Eubanks presented Takoma Park’s fiscal year 2026 third-quarter financial report, saying total year-to-date revenue across all funds was $31.6 million (about 80% of the annual budget) while expenditures totaled $27.4 million (about 60%), leaving a $3.8 million surplus driven by surpluses in the general fund, the stormwater fund and the red-light camera fund.

The presentation, covering July 1, 2025 through March 31, 2026, emphasized that some revenues are cyclical and collection timing affects quarter-to-quarter comparisons. “Certain general fund revenues are cyclical and do not occur evenly throughout the fiscal year,” Eubanks said, and he noted the city uses quarter-benchmarks (25%/50%/75%/100%) for evaluation.

Eubanks highlighted three operational drivers affecting the general fund: a shortfall in public parking revenue tied to obsolete meters and exhausted spare parts; higher human-resources costs from a software billing adjustment and an interim director; and increased legal expense related to labor negotiations and an additional audit. On red-light and stop-sign camera programs he said timing of installations and a higher-than-expected proportion of unpaid citations have reduced near-term revenue projections.

Council Member Hanzac pressed for detail about the parking-meter gap, citing what he described as roughly a $17,000 differential in parking revenues. Eubanks replied that many of the city’s meters are older, parts are no longer manufactured and remaining spares are exhausted; a full replacement of parking-meter infrastructure is included in the FY27 budget.

On enforcement-camera revenue, Eubanks said some balancing will occur between the red-light program and the newly implemented stop-sign camera program and that staff will address the funds in budget amendment number four. For stormwater, Eubanks said lower expenditures in Q3 reflect project delays and that multiyear projects will roll into FY27 if not completed.

The council asked follow-up questions about when parking-meter replacements will be implemented and whether revenue shortfalls will persist; Eubanks said part of the remedy is already funded in FY27 and that the budget amendment will provide more clarity. Staff also noted that the New Hampshire Recreation Center flood-repair contract is expected to come to council on May 27 and that those repairs are expected to be covered by insurance.

The council did not take a final funding vote tonight; staff said they will present specific actions and a budget amendment in coming weeks.