CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the 2026 Mid-Year Financial Report
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Finance Department monitors revenues and expenditures throughout the year to identify trends that impact the annual budget and Capital Improvement Program (CIP). Regular financial reporting informs the City Council and the public on important issues related to the City's finances, including discussions around short- and long-term financial strategies.
This mid-year report focuses on budget performance through the first six months of 2026 and will discuss the preparation of the 2027 annual budget.
The PowerPoint presentation will be made available along with the Agenda Q&A posted prior to the meeting.
DISCUSSION:
As of June 30, budget performance is largely consistent with expectations across most funds. Due to the budget's size and complexity, revenues and expenditures are summarized according to three major fund categories: Maintenance and Operating, Capital and Debt Service, and Special Funds.
Staff measures year-to-date revenues and expenditures against three milestones: the full-year budget, a monthly projection based on three years of historical data, and the prior year's year-to-date actuals. These three measures allow for the budget to be analyzed against a single point in time (last year) and current expectations.
Revenues
Revenue through June across all funds totaled $280.62 million. This is a 3.9% increase over the same period in 2025, and 0.8% lower than the current year projection of $282.76 million:
* Revenue in the General Fund is 1.5% above projections and 3.3% higher than 2025.
* Electric Utility Fund revenue is 0.7% higher than projected and 4.5% higher than last year.
* Revenues in the Water Utilities Fund are 0.8% higher than projected and 12.1% higher than 2025.
Compared to the prior year, most major revenue streams...
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