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HomeMy WebLinkAbout2026 FY2025-2026 Third Quarter Budget Report General Fund Status Report — FY 2026 3rd Quarter General Fund Summary For FY26, the City adopted a General Fund budget of$173.3 million. Council amendments utilized $67,000 from available reserves in the adopted budget, later authorizing budget amendments for an amended budget of$176.2 million. The General Fund ended FY 2025 with an unassigned fund balance of$20.97 million and a total fund balance of$29.99 million. The administration continues to monitor expenditures and seek necessary savings to maintain vital services while also making strategic investments to grow the City's economy and strengthen the quality of life for residents, workers, business owners, and visitors. The general fund budget report is presented in several formats for informational value as follows. After a separate revenue summary, the City's general fund is presented as formally adopted in appropriation detail showing personnel vs. operating expenditures. Revenue Summary Revenue YTD 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q'e Qe e � �4j c o 5 �rec C General Fund revenue collected through the third quarter of fiscal year 2025-2026 was $128M, 72.6% of the budget. 1 • Property Taxes (32.3% of GF revenue budget) are largely collected at the beginning of the fiscal year. They were initially estimated to be $57M. Final numbers will include exact LBRA and TIFA tax captures and any other adjustments for the fiscal year. • Income Tax (26.9%of GF revenue budget) collections were $29.5M (62.2% of its budgeted $47.5M). The Treasury department is hard at work processing annual tax returns, and final amounts will include any revenues collected within 45 days after fiscal-year end. • Licenses and Permits (1% of GF revenue budget) are estimated to be $1.8M. Current receipts are 49.2% of the budgeted amount slightly under previous, driven largely by trends in cable franchise fees and medical marijuana licensing factored more conservatively in the FY 2027 proposal. • State Grants (14.5% of GF revenue budget) are budgeted to be $25.5M in revenue. Changes adopted with the State's FY 2026 budget to constitutional revenue sharing related to sales taxes are began with the February 2026 payment and have only a partial year impact. The City also received the first payment of its Capital City Services allocation and will be receiving a final payment for personal property tax reimbursements in May. • Return on Equity (ROE) (16.9%of GF revenue budget) represents payment to the City from the Board of Water & Light (BWL). The contract is 6% of operating revenues from BWL and with the City receiving payment in allotments based on the timing of budgeted BWL revenues. Any excess revenue will be included in the final quarter payment. • Charges for Services (6.4% of GF revenue budget) are trending with the three-year average for the third quarter. Strong code compliance revenues are currently offsetting lower year-to-date revenues in ambulance transport fees partially attributable to accounting and timing changes. • Fines and Forfeitures (1% of GF revenue budget) are budgeted to be about $1.8M. Quarter-to-date, receipts are $929k with a significant portion of revenues tending to occur in the final quarter. • Interest and Rents (0.6%of GF revenue budget) are budgeted to be $1.1M in FY26 as of the second quarter amendment. Quarter to date amounts are over 961k. • Other Revenues (0.2%of GF revenue budget) amount to a small percentage of the budget with significant variability due to the timing of generally one-time miscellaneous revenues. 2 Expenditure Summary Expenditure YTD 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% v v U_ v ao i v v v v c a c a, u u J LL o � U 0 U 0 °o °c � v v o O a v o v o U Q �n �n t O iz � a u vA Q w H v u Y O w Q a v > O on m p a c cZ E YCC z = x a The city has spent almost $131.OM of its FY26 budget, which amounts to 74.3%YTD. 3 General Fund Revenues FY2026 Q3 YTD January 1, 12026 FY 2026 FY 2026 FY26 03 3 Year 03 Adopted Amended FY 2026 Percent Percent Budget Budget 03 YTD YTD Average Property Taxes Non-Dedicated 42,885,000 42,885,000 42,909,000 Dedicated - Police 4,237,500 4,237,500 4,237,500 Dedicated - Fire 4,237,500 4,237,500 4,237,500 Dedicated - Roads 2,825,000 2,825,000 2,825,000 Dedicated - Parks 2,825,000 2,825,000 2,825,000 Total 57,010,000 57,010,000 57,034,000 100.0% 98.5% Income Taxes City Income Tax 43,990,000 47,490,000 29,535,400 Total 43,990,000 47,490,000 29,535,400 62.2% 65.3% Licenses & Permits Business Licenses 112,880 112,880 78,750 Cable Franchise Fees 800,000 800,000 325,584 Medical Marijuana Licenses 824,000 824,000 435,000 Non-Business Licenses 34,620 34,620 34,157 Buildings Licenses & Permits 31,000 31,000 12,843 Total 1,802,500 1,802,500 886,334 49.2% 58.0% State Grants Public Safety 2,560,000 2,635,000 2,635,367 Other State Grants 1,520,000 1,520,000 1,464,338 Reimbursements 1,800,000 1,775,000 1,077,217 Revenue Sharing 19,200,000 18,590,000 9,553,602 Capital City Allocation 1,000,000 1,000,000 793,120 Total 26,080,000 25,520,000 15,523,644 60.8% 61.2% Return on Equity Board of Water and Light 29,500,000 29,500,000 14,187,223 Sewage Disposal System 300,000 300,000 - Total 29,800,000 29,800,000 14,187,223 47.6% 49.3% General Fund Revenues FY2026 Q3 YTD January 1, 12026 FY 2026 FY 2026 FY26 03 3 Year 03 Adopted Amended FY 2026 Percent Percent Budget Budget 03 YTD YTD Average Charges for Services Fees 89,700 89,700 51,918 Services Rendered 2,255,700 2,255,700 2,297,828 Building Inspection Fees 2,178,500 2,178,500 2,468,733 Services To Others 64,400 64,400 31,100 Central Stores/Notary 2,000 2,000 300 Public Safety Services 184,900 184,900 106,506 Ambulance Transport Fees 5,980,000 5,780,000 3,169,761 Sales 2,200 2,200 55 Use & Admission Fees 678,600 678,600 514,062 Total 11,436,000 11,236,000 8,640,262 76.9% 83.4% Fines & Forfeitures Fines & Forfeitures 1,768,000 1,768,000 929,137 Total 1,768,000 1,768,000 929,137 52.6% 58.9% Interest & Rent Interest Income 585,000 885,000 900,000 Rentallncome 215,000 215,000 61,070 Total 800,000 1,100,000 961,070 87.4% 96.5 Other Revenue Donations & Contributions 136,000 136,000 85,611 Miscellaneous 157,500 157,500 94,884 Sale of Capital Assets 120,000 120,000 2,775 Total 413,500 413,500 183,270 44.3% 101.0% Interfund Transfers In Interfund Transfers In 100,000 100,000 100,000 Total 100,000 100,000 100,000 100.0% 100.0 Use of Fund Balance Unassigned 67,000 - Total 67,000 - Total General Fund Revenues 173,267,000 176,240,000 127,980,340 72.6% 72.7% General Fund Expenditures January 1, 2026 - March 31, 2026 FY 2026 FY 2026 FY26 03 3 Year Adopted Amended FY 2026 Percent Q3 Percent Appropriations Budget Budget Q3 YTD YTD Average Council Personnel 697,481 697,481 434,234 Operating 214,919 246,519 157,180 Total 912,400 944,000 591,414 62.6% 64.8% Internal Auditor Personnel 238,452 238,452 - Operating 10,176 10,176 Total 248,628 248,628 - 0.0% 53.2% Courts Personnel 5,005,773 5,005,773 3,496,611 Operating 1,651,227 1,651,227 905,844 Total 6,657,000 6,657,000 4,402,455 66.1% 66.4% Mayor's Office Personnel 1,073,330 1,073,330 740,956 Operating 297,828 309,628 188,184 Total 1,371,158 1,382,958 929,140 67.2% 70.7% Media Center Personnel 664,016 664,016 504,025 Operating 107,511 107,511 78,382 Total 771,527 771,527 582,407 75.5% 68.2% Clerk's Office Personnel 1,122,559 1,122,559 771,725 Operating 691,832 691,832 447,733 Total 1,814,391 1,814,391 1,219,458 67.2% 72.3% Neighborhood &Citizen Engaaement Personnel 530,319 530,319 386,893 Operating 210,722 210,722 79,176 Total 741,041 741,041 466,069 62.9% 57.5% Economic Development& Planning Personnel 4,837,516 4,837,516 3,624,120 Operating 3,580,033 3,580,033 2,570,177 Total 8,417,549 8,417,549 6,194,297 73.6% 73.2% Finance Personnel 1,908,500 1,908,500 1,457,911 Operating 566,648 566,648 524,884 Total 2,475,148 2,475,148 1,982,794 80.1% 74.5% Assessi na Personnel 1,604,176 1,604,176 1,033,200 Operating 251,268 251,268 193,986 Total 1,855,444 1,855,444 1,227,186 66.1% 55.3% Treasury Personnel 2,079,026 2,079,026 1,520,952 Operating 1,008,574 1,008,574 713,541 Total 3,087,600 3,087,600 2,234,494 72.4% 68.5% Human Resources Personnel 2,063,930 2,063,930 1,585,476 Operating 648,348 648,348 478,801 Total 2,712,278 2,712,278 2,064,277 76.1% 61.1% General Fund Expenditures FY2026 03 YTD January 1, 2026 - March 31, 2026 FY 2026 FY 2026 FY26 03 3 Year Adopted Amended FY 2026 Percent 03 Percent Appropriations Budget Budget Q3 YTD YTD Average Attorney's Office Personnel 2,707,215 2,707,215 1,722,426 Operating 331,037 331,037 289,083 Total 3,038,252 3,038,252 2,011,508 66.2% 64.3% Police Personnel 49,644,398 50,194,398 35,532,175 Operating 9,200,925 9,200,925 6,426,105 Total 58,845,323 59,395,323 41,958,280 70.6% 71.8% Fire Personnel 38,540,084 38,990,084 30,418,113 Operating 6,722,028 6,845,367 4,839,633 Total 45,262,112 45,835,451 35,257,746 76.9% 74.0% Public Service Personnel 3,151,767 3,151,767 2,401,824 Operating 10,613,390 10,613,390 8,395,734 Total 13,765,157 13,765,157 10,797,558 78.4% 68.6% Human Relations &Community Service Personnel 2,270,323 2,270,323 1,414,800 Operating 320,665 320,665 221,435 Total 2,590,988 2,590,988 1,636,235 63.2% 62.5% Parks & Recreation Personnel 6,045,037 6,045,037 4,345,066 Operating 3,844,296 3,844,296 3,015,369 Total 9,889,333 9,889,333 7,360,436 74.4% 69.2% Human Services Operating 2,307,000 3,693,261 2,688,373 Total 2,307,000 3,693,261 2,688,373 72.8% 68.3% City Supported Agencies Operating 537,500 307,500 270,776 Total 537,500 307,500 270,776 88.1% 34.3% City Recognitions Operating 10,000 10,000 7,409 Total 10,000 10,000 7,409 74.1% 9.7% Non-Departmental Vacancy Factor (1,500,000) (1,500,000) - 0.0% South Lansing Distric Library 150,000 150,000 104,235 69.5% 85.9% Debt Service 987,171 987,171 - 0.0% 17.1% Net Transfers 6,320,000 6,970,000 6,970,000 100.0% 100.0% Total 5,957,171 6,607,171 7,074,235 General Fund Total Expenditures 173,267,000 176,240,000 130,956,548 74.3% 72.4%