Quarterly report: Lancaster sees year-to-date revenue gains; interest rates easing

Christine Harris Reed, Lancaster's finance director, presented the third-quarter FY26 financial report at the July 20 work session, summarizing investment yields, fund performance and departmental variances for April 1'June 30. Reed said benchmark interest yields have declined from the prior year (examples given: 3.6673 vs. ~4.35) but that the city has managed its pooled funds prudently.

Reed reported the general fund had collected about 100% of its property taxes year to date and noted that building permit revenue is up for the year amid construction activity. She explained timing issues that can make quarterly figures appear weak (some economic-development revenues are two months behind) and said overall revenue is up versus the prior year. For water and wastewater, Reed said revenue has come in above budget and projects are on track. Debt-service timing was described as normal with principal and interest cycles leading to quarter-to-quarter variance.

Councilors asked a few clarifying questions about line-item variances, impact-fee accounting and how the city budgets for uncertain fee revenue; Reed reiterated that impact fees are not budgeted because receipts depend on project timing. Staff offered to provide more detailed schedules by fund if council desired. The report was provided in writing in the council packet.