|
The City’s projected ending fund balance estimate is higher than previous quarters’ projections after spending less and collecting higher revenues than expected.
As shown in the FY25-29 Plan, much of what wasn’t spent in FY24 is being rolled into FY25 and the $54M set aside in the Recession Reserve has dropped to the fund balance. While overall revenue projections were driven higher than last quarter by Wage and Earnings Tax estimates, year-end estimates for BIRT, Sales, Net Profits, and Beverage were lower than Q3 projections. Except for the Wage and Earnings Tax, every major tax is estimated at lower revenues than the Adopted Budget.
Though the City’s finances appear more stable than last quarter, it will need to be cautious of slowing tax revenues while running operating deficits, especially as the fund balance is expected to fall to $66M in FY29, according to the recently PICA-approved FY25-29 Plan. Updated figures for FY24 revenues, spending, and fund balance are expected in the fall when the City completes the closing of its books.
| 
