THROUGH THIRD QUARTER FY 2025-26
TRANSACTION PRIVILEGE TAX: REVENUES
QUARTERLY REVENUE RECEIPTS VS. BUDGET AND PRIOR YEAR
1,000,000 1,200,000
Year-To-Date 2025-26 Variances
OverallPerformance: ActualTPTrevenuesthroughFebruaryreportinginFY2025-26aremorethanbudget,withasurplusof $915,549 or 12.7%. Currently, every category except for other is performing better than budget.
TheactualYTDis $287,879 morethantheFY2024-25actualsmainlyduetohigherthanprioryearconstruction,restaurant/bar, food for home consumption, and online sales offset by decreases in commercial rental, utilities and other.
TheTPTcollectionsforthefirsteightmonthsaretrendingpositive.Itisnecessarytonotethattheseamountsarefortaxreports filed through the February reporting period.
GENERAL FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
1,000,000 1,500,000 2,000,000 2,500,000 3,000,000
Year-To-Date 2025-26 Variances
Transaction Privilege Tax: Revenue is trending slightly above budgeted projections, primarily due to timing of the revenues received from the State (see detailed TPT section for more information based upon actual reporting periods).
Licenses & Permits: Above budget, due to increased permit valuations compared to prior years.
Intergovernmental Revenues: Above budget, primarily attributed to the Vehicle License Tax, State Shared TPT, and grants, offset by a slight decrease in State Income Tax decrease from the incorporation of San Tan Valley.
Interest: Below budget, due to fewer funds invested in the Local Government Investment Pool (LGIP) and slightly lower interest rates.
Overall Performance: Actual revenues through the third quarter of FY 2025-26 are slightly above budget, with a surplus of $567,312 or 5.1% The actual YTD is $61,288 less than the FY 2024-25 actuals mainly due to a planned decrease in the Town's share of State Income Tax offset by more licenses and permits activity.
GENERAL FUND ACTIVITY: EXPENDITURES BY DEPARTMENT
QUARTERLY EXPENDITURES VS. BUDGET
1,400,000 1,600,000 1,800,000
Police
DepartmentBudgets: Expendituresforallgeneralfunddepartmentsaretrendingbelowbudgetatthecloseofthethirdquarter. Thisisprimarilyduetolong-term,one-timeprojectsthatareinthebeginningstages;zoningcodeupdate,engineeringcodeupdate, landscapedesign/planning,andtimingofvarioustechnologyupgrades.InformationTechnologyServicesandPolicearetrending overbudgetforthethirdquarterduetotimingofvariouspaymentstobudget,butremainwellundertheircumulativeyear-to-date budgets.
OverallPerformance: ActualexpendituresthroughthethirdquarterofFY2025-26areunderbudget,withapositivevarianceof $834,054 or 6.8%. The actual YTD is $30,444 less than the FY 2024-25 actuals.
GENERAL FUND ACTIVITY: EXPENDITURES BY TYPE
QUARTERLY EXPENDITURES VS. BUDGET
1,200,000 1,400,000 1,600,000 1,800,000
Personnel: Belowbudget,duetostaffingvacanciesinDevelopmentServices,Police,TownManager,andPublicWorks,aswellas less pro-tem Municipal Court coverage.
Operating: Below budget, due to the timing of repairs and maintenance, legal services, and other professional services. One-TimeOperating: Belowbudget,duetolong-termone-timeprojects;zoningcodeupdate,engineeringcodeupdate,landscape design/planning, and various technology upgrades.
ContingencyActivity: Ofthe$934,000budgetedincontingency,$686,152isremaining.Thefollowingtransfershavebeen approvedthroughMarch31,2026;$197,200fortheHighlandTownhomessewerandwatermainextensions,$42,112forcourt security enhancements, and $8,536 for door access control.
OverallPerformance: ActualexpendituresthroughthethirdquarterofFY2025-26areunderbudget,withapositivevarianceof $834,054 or 6.8%. The actual YTD is $30,444 less than the FY 2024-25 actuals.
HIGHWAY USERS REVENUE FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Year-To-Date 2025-26 Variances
Highway Users Revenue: Below budget, due to lower than anticipated distributions from the State related to the San Tan Valley incorporation.
Permits: Above budget, due to slightly higher permit activity than estimates.
Miscellaneous: Above budget, attributed to surplus property disposal.
Interest: Above budget, due to slightly more funds invested in the Local Government Investment Pool (LGIP) than anticipated.
Overall Performance: Actual revenues through the third quarter of FY 2025-26 are close to budget, with a shortfall of $18,640 or -1.9%. The actual YTD is $66,095 more than the FY 2024-25 actuals mainly due to increased Highway Users Revenue from the State.
HIGHWAY USERS REVENUE FUND ACTIVITY: EXPENDITURES
QUARTERLY EXPENDITURES VS. BUDGET
Year-To-Date 2025-26 Variances
Personnel: Below budget, due to staffing vacancies in Public Works - Streets.
Operating: Below budget, due to the timing of contract and support services.
HWY 89 Maintenance: Below budget, due to timing of weed control and monthly landscaping maintenance costs.
Road Materials: Below budget, due to the timing of when various equipment (such as guardrails) is needed.
OverallPerformance: ActualexpendituresthroughthethirdquarterofFY2025-26areunderbudget,withapositivevarianceof $146,194 or 14.8%.TheactualYTDis $11,625 morethantheFY2024-25actualsdueprimarilytohigherinterfundtransfersand personnel expenses.
WATER FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Year-To-Date 2025-26 Variances
WaterServiceFees: Abovebudget,duetoslightlyhigherthananticipatedwaterservicefeesfromhighertemperaturesandlower precipitation.
Fill Station Receipts: Above budget, due to change in fill station fee structure.
Water System Buy-In Fees: Below budget, attributed to slightly less than anticipated new home construction permits. Miscellaneous: Above budget, attributed to greater than anticipated water meter fees, late fees, and service fees.
OverallPerformance: ActualrevenuesthroughthethirdquarterofFY2025-26haveexceededbudgetexpectations,withasurplus of $120,136 or 15.1%.TheactualYTDis $120,956 morethantheFY2024-25actualsmainlyduetoanincreaseinwaterservicefees intheamountof$59,590(warmertemperaturesandtheratestructureincreasesapprovedinDecember2023contributedtothis increase) and an increase in fill station fees in the amount of $90,130 (new fee structure that was effective July 1, 2025).
WATER FUND ACTIVITY: EXPENSES
QUARTERLY EXPENSES VS. BUDGET
Year-To-Date 2025-26 Variances
Personnel: Below budget, due to the allocation split between sewer and water.
Operating: Below budget, due to the timing and need of system maintenance and repairs.
Contingency: Below budget, no contingency funds have been used to date.
OverallPerformance: ActualexpensesforthethirdquarterofFY2025-26areunderbudget,withapositivevarianceof $104,385 or 17.5%.TheactualYTDis $55,891 morethantheFY2024-25actualsmainlyduetothetimingofadministrativeindirecttransfersand slightly higher personnel costs offset by a slight decrease in one-time operating expenses.
WASTEWATER FUND ACTIVITY: REVENUES
QUARTERLY REVENUE COLLECTIONS VS. BUDGET
Year-To-Date 2025-26 Variances
Sewer Service Fees: Below budget, due to slightly lower than anticipated sewer service fees. This is a 0.1% difference and although minimal, staff is closely watching the revenues.
Sewer System Buy-In Fees: Below budget, due to fewer than anticipated new home construction permits during the third quarter, offsetting the surplus from the first quarter.
Miscellaneous: Below budget, attributed primarily to lower than anticipated late fees and service fees.
Interest: Above budget, attributed to greater interest than anticipated in the WIFA reserve fund.
Overall Performance: Actual revenues through the third quarter of FY 2025-26 are close to budget, with a shortage of $38,164 or 2.1%, primarily due to lower than expected buy-in fees and sewer service fees, offset by a slight surplus in interest. The actual YTDis $13,053 more than the FY 2024-25 actuals mainly due to an increase in sewer service fees in the amount of $128,892 (more customers and the rate structure increases approved in December 2023 contributed to this increase as well as additional changes for RV and mobile home park spaces that became effective July 1, 2025), offset by lower sewer system buy-in fees, service administrative fees collected, and interest.
WASTEWATER FUND ACTIVITY: EXPENSES
QUARTERLY EXPENSES VS. BUDGET
2025-26 Actual Expenses 2025-26 Budget
Year-To-Date 2025-26 Variances
Personnel: Above budget, due to the allocation split between sewer and water. Operating: Below budget, due to the timing of equipment repairs and maintenance. Contingency: Below budget, no contingency funds have been used to date.
OverallPerformance: ActualexpensesthroughthethirdquarterofFY2025-26areunderbudget,withapositivevarianceof $191,631 or 11.1%.TheactualYTDis $94,580 morethantheFY2024-25actualsmainlyduetohigherpersonnelservices(dueto COLA/meritadjustments),anincreaseintheprincipalportionofdebtservice,andanincreaseinoperatingexpensesduetothe timing of administrative indirect transfers. Total (Excludes Capital)272,353
CAPITAL: VEHICLES/MACHINERY/EQUIPMENT
CAPITAL: PROJECTS
QUARTERLY EXPENDITURES VS. BUDGET
1 Only will move forward once funding source is identified (grant or loan).
2 Only will move forward once funding source is identified (program income or contribution). 1
FUND HEALTH: CASH BALANCES BY FUND
QUARTERLY CASH BALANCE CHANGES
(2,000,000)2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 Beginning Cash Balance Quarter 1 Quarter 2 Quarter 3 Quarter 4
Fund
User Revenue Fund
Impoundment Fee Fund CVSLID
Service Funds
Bonds Fund
Project Funds
CIP Fund
CIP Fund
FUNDS
Fund
CIP Fund