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HomeMy WebLinkAbout09/09/2025 03.A. 2025 2nd Quarter Financial Report < `y 1ljlt ii! 'I!I/ s . BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 3.A. For Meeting of: September 9, 2025 ITEM TITLE: 2025 2nd Quarter Financial Report SUBMITTED BY: *Craig Warner, Director of Finance & Budget SUMMARY EXPLANATION: The Finance Department presents the preliminary, unaudited 2nd Quarter 2025 financial update, covering the period through June 30. Overall revenues and expenditures are tracking slightly below the halfway point of the year, which is typical due to the timing of certain receipts and capital project spending. A new reporting format now consolidates all general revenues—property, sales, and utility taxes—into the General Fund before transferring them to designated service areas, improving transparency on how funds are collected and allocated. While most revenue and expenditure categories are consistent with historical trends, sales tax collections are showing declines in several economic sectors, property tax is slightly ahead of schedule due to early payments, and licenses and permits are above expectations due to increased building activity. This report serves as a mid-year snapshot to assist in planning, with final audited results to be presented in 2026. ITEM BUDGETED: N/A STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Review only. Submitted for routine transparency and accountability. ATTACHMENTS: 2025 FN 2nd Quarter Report 9.4.25.pdf Q2 Update.pptx 2 ":. .. .� , FINANCE DEPARTMENT To: Honorable Mayor and Members of the City Council Vicki Baker,City Manager From: Craig Warner,Director of Finance&Budget Kathy Miles,Finance Department Analyst Date: September 9,2025 Subject: 2025 2nd Quarter Financial Update This financial update is a preliminary, unaudited,report for the 2nd quarter ended June 30,2025, (two quarters,or 50%of the year),intended to inform and assist governance decisions for future planning. In total,city General Fund revenues are at 48.3%of budget and expenditures are at 46.5%of budget. The timing of certain revenue payments and expenditures are normally the biggest reasons that revenues and expenditures are below 50%at this point in the year. The General Fund consists of resources that are available for use with greater flexibility. Therefore,this report contains information specifically to the General Fund. Future reports will build out other funds and resources that Council will find resourceful. The information on the following pages provide insight into the monitoring of revenue and the management of expenses. This report shows information for a specific time period,and is only an indicator of how the City's finances are doing at one moment in time. Final numbers will not be known until after the annual independent audit for 2025,which will not be completed until later in 2026. Beginning with this 2nd quarter report,all revenues that are general in nature,specifically property tax, sales tax and utility tax,will be reported in the General Fund and then transferred to the separate funds, where the money will be spent on directed services. Examples are funds that are allocated for parks and recreation,streets,police and fire pension funds,and the communications center. This change will allow the community an easier understanding and transparency of the amount of general revenues that are collected for the City and where the revenues are being spent. Finance Quarterly Report-Page 1 3 GENERAL FUND OVERVIEW GENERAL FUND BY CATEGORY (001 &003-With Transfers) As of June 30,2025 2023 2024 2025 2025 Percent Actual Actual Actual Amended Expended Revenues Sales Tax $ 13,839,724 $ 14,111,746 $ 13,444,920 $ 30,758,000 43.7% Property Tax 11,948,362 12,164,724 12,556,295 22,497,871 55.8% Utility Tax 10,903,492 10,722,169 11,785,237 21,583,567 54.6% Intergovernmental 1,610,327 1,433,636 1,375,714 4,740,691 29.0% Charges for Services 1,517,394 1,709,855 1,755,692 3,318,674 52.9% Investment Interest/Amort 1,059,365 1,034,038 445,030 2,670,000 16.7% Licenses&Permits 968,992 916,374 1,299,770 1,810,750 71.8% Fines&Forfeitures 1,234,409 1,424,065 868,894 1,657,808 52.4% Franchise Fees&Miscellaneous 446,625 504,535 218,384 1,603,000 13.6% Total Revenues $ 43,528,690 $ 44,021,142 $ 43,749,936 $ 90,640,361 48.3% Expenditures Salaries&Wages $ 22,309,113 $ 21,504,608 $ 22,002,665 $ 47,705,157 46.1% Personnel Benefits 7,111,914 7,515,196 7,908,874 17,553,032 45.1% Services&Charges 4,753,556 4,128,427 4,419,105 11,374,387 38.9% Supplies,Equip&Misc 1,249,438 1,315,516 1,199,629 2,290,931 52.4% Transfers 8,356,119 8,895,849 8,687,381 16,248,091 53.5% Debt Service' 239,040 161,634 150,946 153,978 98.0% Capital Outlays 407,895 44,078 — 146,000 n/a Total Expenditures $ 44,427,075 $ 43,565,308 $ 44,368,600 $ 95,471,576 46.5% Net Gain/Loss (898,385) 455,834 (618,664) (4,831,215) General Fund Ending Balance $ 16,542,922 $ 16,998,756 $ 16,380,092 $ 12,167,541 Year to date revenue and expenditure categories above are mostly consistent with historical trends, significant items are noted below. • Sales Tax revenue continues to show declining revenue. (See Sales Tax discussion on page 4). • Property Taxes (55.8%) show above average collections at this time of year,however,some taxpayers paid their second half taxes in April,so we are on target to meet the Amended Budget as projected. • Investment Interest/Amortization (16.7%),is below 50%mainly due to a negative amortization, which will be adjusted at year end when final numbers are known. However,interest from investments are also currently below the Amended Budget amount. • Licenses&Permits are well above 50% due to Single-family and Multi-family permits being up for 2025 (76)compared to 2024 (31),as of June 30,2025. 1 Debt Service is generally paid in the first half of the year. 4 Finance Quarterly Report-Page 2 • Franchise Fees&Other Taxes (13.6%) are below 50% due to the second quarter gambling taxes not yet being posted. Note: The previous chart is inclusive of all current General Fund Sales Tax,along with all Criminal Justice Sales tax,including those funds currently in funds 153 and 303,which will be incorporated into the General Fund next year. The chart above is also inclusive of all current General Fund Property Tax,along with any Property Tax currently included in funds 131, 132, 133, 141, 154,281,323,331,346,612 and 613,which will also be incorporated into the General Fund in 2026. 5 Finance Quarterly Report-Page 3 GENERAL FUND REVENUES The foundation of any city government is its fiscal health. The revenues it receives,both present and projected for the future,set the stage for discussing what services to provide as well as the level of those services-including the facilities,equipment,and infrastructure,that will be needed. For most municipalities in the State of Washington,Property Tax,Sales Tax and Utility Tax make up the bulk of the funding sources for the General Fund. This is commonly referred to as the "Three-Legged Stool" for financing cities. In the City of Yakima,these three funding sources make up$74.8 million,or 82.6%,of the General Fund's total revenue. Therefore,these three funding sources will be reviewed in more detail. Sales Tax Sales Tax revenue collections through June 2025 are only being collected at a rate of43.7%of the 2025 Amended Budget. Major categories that affected this change in Sales Tax were: • Construction is down 14.7%,mainly in the residential remodeling and commercial and institutional construction categories. Given that permits sold in the 2nd quarter of 2025 are showing a marked increase,this number should improve. • Wholesale Trade is down 10.4%,mainly in the durable goods category,continuing a trend that began in early 2024. • Real Estate,including rentals and leasing,was down 16.3%from last year,continuing a decline that started mid-year in 2023. Note: Revenue numbers for the numbers above are reported with a two-month delay (June numbers are from April,etc). GENERAL FUND SALES TAX HISTORY %of 2020 2021 2022 2023 2024 2025 2025 Amended Actual Actual Actual Actual Actual Actual Amended Budget Jan $ 1,817,039 $ 1,928,771 $ 2,196,846 $ 2,276,106 $ 2,365,332 $ 2,255,109 $ 2,536,572 88.9 % Feb 2,029,248 2,245,077 2,522,674 2,513,602 2,627,050 2,568,157 2,817,237 91.2 % Mar 1,659,472 1,893,988 1,948,108 2,091,236 2,050,201 2,003,823 2,198,626 91.1 % Apr 1,606,124 1,743,129 1,985,727 2,096,198 2,168,204 1,896,739 2,325,172 81.6 % May 1,685,613 2,456,405 2,458,868 2,557,361 2,448,156 2,373,896 2,625,392 90.4 % Jun 1,711,757 2,359,078 2,322,803 2,305,220 2,452,803 2,347,196 2,630,375 89.2 % Jul 2,011,808 2,713,124 2,364,665 2,540,587 2,452,245 — 2,629,776 —0/0 Aug 2,144,558 2,514,671 2,637,384 2,699,573 2,566,983 — 2,752,821 —0/0 Sep 2,019,371 2,318,338 2,392,044 2,445,256 2,401,196 — 2,575,032 —0/0 Oct 1,987,693 2,124,408 2,423,465 2,499,547 2,434,319 — 2,610,553 —0/0 Nov 2,188,917 2,438,936 2,481,867 2,480,283 2,511,248 — 2,693,051 —0/0 Dec 2,451,311 2,784,658 2,466,077 2,639,444 2,203,843 — 2,363,392 —0/0 Total $ 23,312,911 $ 27,520,583 $ 28,200,528 $ 29,144,413 $ 28,681,580 $ 13,444,920 $ 30,757,999 43.7% Note: The chart above is inclusive of all current General Fund Sales Tax,along with all Criminal Justice Sales tax,including those funds currently in funds 153 and 303,which will be incorporated into the General Fund next year. 6 Finance Quarterly Report-Page 4 Property Tax Property Tax increases each year due to assessed valuations (a combination of the existing cap at 1%and new growth). The first half of property taxes are in April and the second half are due in October. Although the collection rate through June shows 55.8%of budget,this is likely due to some taxpayers paying both halves of their taxes in the first half of 2025. GENERAL FUND PROPERTY TAX HISTORY of 2020 2021 2022 2023 2024 2025 2025 Amended Actual Actual Actual Actual Actual Actual Amended Budget Jan $ 37,579 $ 86,756 $ 57,933 $ 65,431 $ 70,058 $ 64,539 $ 73,764 87.5 % Feb 775,217 744,276 797,982 950,058 966,522 912,447 1,017,648 89.7% Mar 768,000 1,103,203 1,058,036 1,115,643 1,061,909 1,151,742 1,118,081 103.0% Apr 8,176,993 8,616,060 8,534,579 8,680,847 9,217,230 9,426,435 9,704,794 97.1 % May 1,084,414 779,671 1,074,815 1,025,081 788,661 875,976 830,379 105.5 % Jun 172,023 110,052 86,030 111,304 60,345 125,156 63,537 197.0% Jul 110,417 77,303 90,311 77,032 60,119 - 63,299 -0/0 Aug 126,149 89,258 86,693 106,641 109,755 - 115,561 -0/0 Sep 387,834 407,946 326,248 349,692 329,277 - 346,695 -0/0 Oct 7,243,604 6,930,241 7,409,235 7,464,717 7,870,900 - 8,287,247 -0/0 Nov 771,804 1,059,473 712,973 894,186 683,715 - 719,881 -0/0 Dec 88,845 157,354 108,241 96,620 149,099 - 156,986 -0/0 Total $ 19,742,879 $ 20,161,593 $ 20,343,076 $ 20,937,252 $ 21,367,590 $ 12,556,295 $ 22,497,872 55.8% Note: The chart above is inclusive of all current General Fund Property Tax,along with any Property Tax currently included in funds 131, 132, 133, 141, 154,281,323,331,346,612 and 613,which will be incorporated into the General Fund next year. Utility Tax Utility Taxes are collected from internal sources as well as external sources for all utilities. GENERAL FUND UTILITY TAX HISTORY of 2020 2021 2022 2023 2024 2025 2025 Amended Actual Actual Actual Actual Actual Actual Amended Budget Jan $ 1,722,242 $ 1,577,016 $ 1,940,540 $ 2,088,600 $ 1,970,793 $ 2,014,386 $ 1,979,531 101.8% Feb 1,653,938 1,552,077 1,362,267 1,992,367 1,869,762 2,050,429 1,878,052 109.2 % Mar 1,505,385 1,931,928 1,742,058 1,909,491 1,891,715 2,255,758 1,900,102 118.7% Apr 1,453,283 1,623,247 1,628,459 1,820,908 1,739,939 1,910,122 1,747,653 109.3 % May 1,251,625 2,062,569 1,562,263 1,540,749 1,645,449 1,973,407 1,652,745 119.4 Jun 1,466,340 1,353,648 1,517,539 1,551,377 1,604,511 1,581,135 1,611,625 98.1 % Jul 1,570,291 1,405,638 1,630,623 1,762,352 1,756,848 - 1,764,637 -0/0 Aug 1,279,524 1,841,104 1,618,170 1,903,481 1,696,867 - 1,704,391 -0/0 Sep 1,666,553 1,724,817 1,837,367 1,955,305 1,976,318 - 1,985,080 -0/0 Oct 1,611,041 1,333,007 1,702,848 1,705,149 1,713,382 - 1,720,979 -0/0 Nov 1,460,018 1,686,845 1,813,879 1,734,021 1,786,085 - 1,794,004 -0/0 Dec 1,764,404 896,575 2,040,975 1,461,754 1,836,625 - 1,844,768 -0/0 Total $ 18,404,644 $ 18,988,471 $ 20,396,988 $ 21,425,554 $ 21,488,294 $ 11,785,237 $ 21,583,567 54.6% 7 Finance Quarterly Report-Page 5 See below for the current rates. UTILITY RATES &REVENUES 2025 %of 2023 2024 Actual 2025 Amended Rate Actual Actual As of 6/30/25 Amended Budget Water Utility Tax 20.0% $ 2,304,239 $ 2,368,774 $ 1,028,714 $ 2,355,000 43.7% Sewer Utility Tax 20.0% 4,855,904 4,838,313 2,457,144 4,971,000 49.4% Refuse Utility Tax 20.0% 1,470,316 1,530,647 755,968 1,480,337 51.1% Storm Drainage 20.0% 613,330 633,218 356,741 633,218 56.3% Electric Utility Tax 20.0% 6,292,358 6,347,121 3,866,624 6,094,000 63.4% Private Water Utility Tax 25.0% 1,090,645 1,240,099 372,663 1,354,000 27.5% Gas Utility Tax 6.0% 1,885,330 1,854,907 1,672,573 1,726,000 96.9% Private Garbage Utility Tax 6.0% 1,118,074 1,231,461 522,080 1,320,588 39.5% Cable TV Utility Tax 6.0% 591,714 509,913 229,880 606,424 37.9% Cellular Utility Tax 6.0% 362,155 264,570 130,049 277,000 46.9% Telephone Utility Tax 6.0% 628,715 515,796 300,534 601,000 50.0% Brokered Natural Gas Util Tax 6.0% 212,775 153,475 92,268 165,000 55.9% Total $ 21,425,555 $ 21,488,294 $ 11,785,238 $ 21,583,567 54.6% Finance Quarterly Report-Page 6 GENERAL FUND EXPENDITURES GENERAL FUND EXPENDITURES Inclusive of Funds 001 &003 2025 Expenditures as of June 30 Amended Percent General Fund 2023 2024 2025 Budget Exp'd Law&Justice Legal $ 1,167,669 $ 1,144,383 $ 1,204,698 $ 3,089,671 39.0% Municipal Court 1,117,900 1,018,869 1,064,852 3,051,658 34.9 % Indigent Defense 756,455 868,620 907,884 1,750,000 51.9 % Public Safety Police 17,551,209 17,903,425 18,085,586 39,514,410 45.8% Fire 9,740,053 9,216,738 9,400,947 18,459,325 50.9 % Code Administration 788,420 791,932 877,495 3,216,952 27.3 % Subtotal Law&Justice/Public Safety 31,121,706 30,943,967 31,541,462 69,082,016 45.7% General Government City Management 329,466 455,036 280,535 678,878 41.3 % City Council 170,457 185,761 169,606 330,622 51.3 % City Clerk/Records 395,622 182,924 242,740 795,648 30.5 % Human Resources 429,855 389,372 636,453 1,318,305 48.3 % Planning 291,712 393,769 407,746 1,093,388 37.3 % City Hall Facility 233,204 213,373 207,252 590,671 35.1 % Economic Development 314,194 287,013 285,939 781,498 36.6% Information Technology 2,069,400 2,051,795 2,235,435 5,130,490 43.6% Finance 1,212,121 974,296 1,079,902 2,051,184 52.6% Purchasing 182,096 141,989 230,706 490,456 47.0% Engineering 518,018 484,483 401,272 1,036,878 38.7% Intergovernmental 98,469 124,326 120,944 161,001 75.1 % City Service Reimbursement 2 (1,295,364) (2,158,645) (2,158,773) (4,317,547) 50.0% Subtotal General Government 4,949,250 3,725,492 4,139,757 10,141,472 40.8% Transfers Out 8,356,119 8,895,849 8,687,381 16,248,091 53.5 % Transfer to funds: Public Safety $ 3,977,023 Parks&Recreation 6,715,802 Streets&Traffic 5,555,266 $ 16,248,091 Total General Fund $ 44,427,075 $ 43,565,308 $ 44,368,600 $ 95,471,579 46.5 2 City Service charges are required to be shown as a reimbursement of expense instead of a revenue per the State Auditor. These numbers can vary dependent upon the timing of the City Services Reimbursements and transfers out. 9 Finance Quarterly Report-Page 7 GENERAL FUND TRANSFERS 2023 2024 2025 Transfer To Fund Actual Actual Amended Source Required Purpose Public Safety Police 613 $ 772,995 $ 605,092 $ 800,000 Property Tax Police Pension Fire 612 800,000 750,000 850,000 Property Tax Fire Pension Law&Justice Capital 303 120,000 120,000 120,000 .03%CJ Tax Criminal Justice Law&Justice Capital 333 270,979 282,431 287,023 .03%CJ Tax Criminal Justice Public Safety Comm 154 1,450,000 1,550,000 1,650,000 Property Tax Dispatch Subsidy Public Safety Comm 153 240,316 237,986 270,000 .03%CJ Tax Criminal Justice Subtotal Public Safety 3,654,290 3,545,509 3,977,023 Other Funds Parks&Recreation 131 3,173,716 3,570,919 2,970,919 Property Tax Parks Subsidy Parks&Recreation 131 1,896,856 1,977,015 2,009,162 Utility Tax Parks Subsidy Streets&Traffic 141 4,400,000 4,580,000 3,130,000 Property Tax Streets Subsidy Aquatics Facilities 133 700,000 Property Tax Pools Subsidy LTGO Bond Debt 281 420,000 420,000 450,000 Property Tax Parks Charter(YMCA) LTGO Bond Debt 281 400,000 400,000 450,000 Property Tax Parks Charter(SOZO) Parks Capital 331 186,873 107,120 135,721 Property Tax Parks Charter Street Overlay&Recon 346 605,782 697,006 2,425,266 Property Tax Streets Charter Total Other Funds 11,083,227 11,752,060 12,271,068 Total Transfers $ 14,737,517 $ 15,297,569 $ 16,248,091 GENERAL FUND EXPENDITURES WITH TRANSFERS (Inclusive of funds 001&003) Parks&Recreation $6.7 million 7.0% Streets&Traffic $5.6 million 5.8% Public Safety General Administration $65.2 million $10.1 million 68.3% 10.6% Law&Justice $7.9 million 8.3% 1 0 Finance Quarterly Report-Page 8 __ ..._ City of Yakima ��$ } - r� 2025 Second Quarter ..- Y-p.... .1.1t �tp"T'M. �ri. Financial Update �� =, ��, � , _ -w . f r.�".; Presented by: `� _ - - ' • Craig Warner, Director of Finance & Budget , "VI September 9, 2025 ,. ,,. r . .�4. -. N - I III 11 2025 Second Quarter Financial Update Discussion will center around the General Fund Where does the money come from ? • Where does the money go? September 9,2025,City Council Special Meeting 12 The 3- legged stool Sales Tax (33.9%) Property Tax (24.8%) Utility Tax (23.8%) 82.5% of General Fund Revenue September 9,2025,City Council Special Meeting 13 Licenses& Other, Permits, $11320173 12% $1,810,750 , 2% ' Investment j Sales Tax, 0 Interest/Amortization, I $30,7$ 8,000 , 34/0$2,670,000 , 3% 2025 General Fund Revenue Sources B u d g et Utility Taxes, $21,583,567 , 24% Property Tax, $22,497,871 , 25% .Sales Tax Property Tax .Utility Taxes Investment Interest/Amortization .Licenses & Permits Other September 9,2025,City Council Special Meeting 4 14 43.7% — declining trend; affected by slowdowns in Sales Tax construction, wholesale trade, and leasing sectors. Caution: declining sales tax needs monitoring for long-term impact. Rio General Fund Sales Tax History Sales Tax 2025 Adopted Budget 2025 Actual Received General 1% $ 24,711,000 $ 10,770,307 43.6% Criminal Justice .3% $ 3,839,000 $ 1,704,304 44.4% $27,520,583 $29,144,413 $30,758,000 $28,200,528 $28,681,580 Criminal Justice .1% $ 2,073,000 $ 924,900 44.6% $23,312,911 --ill Affordable Housing $ 135,000 $ 45,409 33.6% $28,723,000 $ 30,758,000 $ 13,444,920 43.7% I p2o c;c°1*,- 2p\PG.\)P'' Zoe PG1‘)P4 p23 P6cJ)1 0 PG.c‘3E O�Oi JOG�025Q 20-6ix°3 °) PM 2 September 9,2025,City ounci pecia 'ee ing 5 15 '_'_;.. .V aaaaaa1l I, $,,,,c)..% . � Where doesyourpropertytax dollargo? 0., <1t ••••* ah=' Taxing entities for the properties in the Yakima School District ,Ilaa C,RRoR k n 0 a6_ "Ak•saN., City of Yakima tax code area 331, 333, 334, 335, and 349 d r 1 + ll;`6'u "i} ► a+ W 9 w t A? M t 4 -I pP t�► p ti Z l,' , „ "(1I 4.'I It '... , p:-.-r.:,::. . I),;, I raim‘1 l'' ' , .17in't."1-1, iT 1 F.:11-Mill p li i t.\:‘,--- M.M Oil AI\t ;,S, 1 4 1: stwsiN ii,_ . 11° 1 I P. -T)M 11 i �' THIS NOTE IS LEGAL TENDER 'II,ram ALL DEBTS,PUBLIC AND PRIVAT TE 5j' -a-� 'ems 1. lww � 4"� , :' l B 03542754 F tor '! SeN o j a'�",�f WASHINGTON,D.C. ✓ s r Z , wl ..--- ) B' 2 47"), B03 42754E ,='-�, �4 ti e : q �] SERIES ,•' 20444-'-*,1% I 2 � 9. risr` .Pir �� aooe j��a��al,�j..�+.. G/2tr Jdr?luHrd.�be — . v' IGrMry f,h,2 y COunty , l �'��> yg �,I1IHVdV g M�..t,. �,� ,�'i.rRIS�uFl ��:9i�M11�1��iRHiUt Flood Control // . 3% 3% 20% 26% 36% County Yakima o City of State Yakima Valley 11 /o Yakima School School ey Yakima Levy 1 & 2 Regional County Library September 9,2025,City Council Special Meeting 16 Property Tax (what will be General Fund only in 2026) I ropert Tax — 2023 2024 2025 2025 y Actual Actual Actual Amended Steady G rowt h Jan 65,431 70,058 64,539 73,764 Feb 950,058 966,522 912,447 1,017,648 Mar 1,115,643 1,061,909 1,151,742 1,118,081 Apr 8,680,847 9,217,230 9,426,435 9,704,794 May 1,025,081 788,661 875,976 830,379 Jun 111,304 60,345 125,156 63,537 Property Tax is at 55.8%, tracking slightly Jul 77,032 60,119 - 63,299 ahead — driven by al % annual increase, Aug 106,641 109,755 - 115,561 normal collection timing, and new Sep 349,692 329,277 - 346,695 construction. Oct 7,464,717 7,870,900 - 8,287,247 Nov 894,186 683,715 - 719,881 Dec 96,620 149,099 - 156,986 $ 20,937,251 $ 21,367,588 $ 12,556,295 $ 22,497,871 September 9,2025,Ci uncil Special Meeting 17 Utility Taxes collected at 20% Water Sewer Refuse Storm Drainage Utility Taxes collected at 6% Electric Utility Tax Rates Natural gas Cable television Cellular telephone service business Telephone Utility Taxes collected on private/brokered services Private Water 20% Private Garbage 25% 18 Utility Tax 2025 Amended Budget Versus Actuals Water Utility Tax Sewer Utility Tax Refuse Utility Tax Storm Drainage 43.7% 49.4% 51.1% 56.3% 4,971,00 0 $2,355,0 1,480,33 00 7 633,218 $1,028,7 62,457,1 755,968 356,741 14 44 September 9,2025,City Council Special Meeting 9 19 Utility Taxes 2025 Amended Budget Versus Actuals Electric Utility Tax Private Water Utility Gas Utility Tax Private Garbage 63.4% Tax 27.5% 96.9% Utility Tax 39.5% 1,726,00 1,354,000 0 1,672,573 1,320,588 6,094,000 3,866,62 4 522,080 372 663 June revenue from Private Garbage and Cable TV is excluded due to the timing of fund receipts. September 9,2025,City Council Special Meeting 10 20 Utility Taxes 2025 Amended Budget Versus Actuals Cable TV Utility Cellular Utility Tax Telephone Utility Brokered Natural Tax 37.9% 46.9% Tax 50.0% Gas Utility Tax 55.9% 277,000 165,000 606,424 601,000 92,268 130,049 300,534 229,880 June revenue from Private Garbage and Cable TV is excluded due to the timing of fund receipts. September 9,2025,City Council Special Meeting 11 21 Other Revenue Factors Investment Interest 16.7 % due to negative amortization, correction coming at year-end. -' Licenses & Permits 71 .8% driven by a surge in single- and multi-family permits. are below 50% due to the second ® Franchise Fees & Other Taxes 13.6% quarter gambling taxes not yet being posted. September 9,2025,City Council Special Meeting 22 Streets $5,555,266 Law&Justice Parks & 5.8% $7,891,329 Recreation 8.3% $6,715,802 7.0% Where We Spend General — Administration 0.6 Expenditure $10,11,472 Categories No significant overages to report. Most departments are within mid- year expectations. Public Safety $65,167,710 68.3% September 9,2025,City Council Special Meeting 13 23 2025 Expenditures as 2025 Amended Percent Expended of June 2025 Budget Law&Justice General Fund Legal $1,204,698 $3,089,671 39.0% Municipal Court 1,064,852 3,051,658 34.9% Indigent Defense 907,884 1,750,000 51.9% Expenditures (Funds 001 & 003) puLa b&JuticeSubtotal $3,177,434 $7,891,329 40.3% Police $18,085,586 $39,514,410 45.8% Fire 9,400,947 18,459,325 50.9% Code Administration 877,495 3,216,952 27.3% Public Safety Subtotal $28,364,028 $61,190,687 46.4% Law&Justice Subtotal $31,541,462 $69,082,016 45.7% General Administration City Management 280,535 678,878 41.3% City Council 169,606 330,622 51.3% City Clerk/Records 242,740 795,648 30.5% Human Resources 636,453 1,318,305 48.3% Planning 407,746 1,093,388 37.3% City Hall Facility 207,252 590,671 35.1% Economic Development 285,939 781,498 36.6% Information Technology 2,235,435 5,130,490 43.6% Finance 1,079,902 2,051,184 52.6% Purchasing 230,706 490,456 47.0% Engineering 401,272 1,036,878 38.7% Intergovernmental 120,944 161,001 75.1% City Service Reimb (2,158,773) (4,317,547) 50.0% General Administration $4,139,757 $10,141,472 40.8% Operating Transfers 8,687,381 16,248,091 53.5% Note: Over-time for Police & Fire is not $44,368,600 $95,471,579 46.5% fully budgeted. September 9,2025,City Council Special Meeting 24 r 2025 i Transfer To Amended Source Required Purpose Budget Public Safety Police $800,000 Property Tax Police Pension Fire 850,000 Property Tax Fire Pension Law& Justice Capital 120,000 .03% CJ Tax Criminal Justice Law& Justice Capital 287,023 .03% CJ Tax Criminal Justice What i S meant Public Safety Comm 1,650,000 Property Tax Dispatch Subsidy Public Safety Comm 270,000 .03% CJ Tax Criminal Justice Subtotal Public Safety $3,977,023 Transfers" Other Funds Ij ' Parks & Recreation 4,980,081 Property & Utility Tax Parks Operations Streets &Traffic 3,130,000 Property Tax Streets Operations Aquatics Facilities 700,000 Property Tax Pools Operations LTGO Bond Debt 450,000 Property Tax Parks Charter (YMCA) .Transfers are built into the budget LTGO Bond Debt 450,000 Property Tax Parks Charter (SOZO) Parks Capital 135,721 Property Tax Parks Charter and support Council priorities. Street Overlay & Recon 2,425,266 Property Tax Streets Charter Total Other Funds $12,271,068 Total Transfers $16,248,091 September 9,2025,City Council Special Meeting 25 Others, $13,965,296 , 15% Transfers, $16,248,091 , 17% 2025 General Fund Expenditures Budget Salaries & Personnel Wages, Benefits, $47,705,157 , $17,553,032 , 50% 18% September 9,2025,City Council Special Meeting 26 As of June 30,2025 2023 Actual 2024 Actual 2025 Actual 2025 Amended Percent Expended Revenues Sales Tax $13,839,724 $14,111,746 $13,444,920 $30,758,000 43.7% Property Tax 11,948,362 12,164,724 12,556,295 22,497,871 55.8% Utility Taxes 10,903,492 10,722,169 11,785,237 21,583,567 54.6% Genera Intergovernmental 1,610,327 1,433,636 1,375,714 4,740,691 29.0% Charges for Services 1,517,394 1,709,855 1,755,692 3,318,674 52.9% I Investment 1,059,365 1,034,038 445,030 2,670,000 16.7% Fund by Interest/Amort Licenses&Permits 968,992 916,374 1,299,770 1,810,750 71.8% Fines&Forfeitures 1,234,409 1,424,065 868,894 1,657,808 52.4%Franchise Fees& 446,625 504,535 218,384 1,603,000 13.6% Cate c r y Miscellaneous Total Revenues $43,528,690 $44,021,142 $43,749,936 $90,640,361 48.3% 001 & 003 - With Transfers Expenditures Salaries&Wages $22,309,113 $21,504,608 $22,002,665 $47,705,157 46.1% Personnel Benefits 7,111,914 7,515,196 7,908,874 17,553,032 45.1% Services&Charges 4,753,556 4,128,427 4,419,105 11,374,387 38.9% Supplies, Equip&Misc 1,249,438 1,315,516 1,199,629 2,290,931 52.4% Transfers 8,356,119 8,895,849 8,687,381 16,248,091 53.5% Debt Service 239,040 161,634 150,946 153,978 98.0% Capital Outlays 407,895 44,078 — 146,000 n/a Total Expenditures $44,427,075 $43,565,308 $44,368,600 $95,471,576 46.5% Net Gain/Loss (898,385) 455,834 (618,664) (4,831,215) General Fund Ending $16,542,922 $16,998,756 $16,380,092 $12,167,541 Balance September 9,2025,City Council Special Meeting 27 Summary : This is a preliminary, unaudited update through June 30, 2025 (50% of the year) Citywide City revenues are at 48.3% of budget, and expenditures are at Finances 46.5%. The General Fund is tracking consistently with historic patterns through Q2 This is typical for midyear; however, sales tax should be monitored. 2025 Utility Taxes, specifically on electricity, are coming in greater than anticipated Over-time for Police & Fire is not fully budgeted G Cl September 9,2025,City Council Special Meeting 28 Questions & 111. Discussion September 9,2025,City Council Special Meeting 19 29